The Impact of Brexit on Africa

Get up to date with the November 2020 Africa Business Group newsletter. Explore some of the most interesting business news and articles from around the continent.

Visit our dedicated Africa site for more information about doing business in Africa and how Addleshaw Goddard can support you.

Introduction

At the end of this year the United Kingdom will exit its transition period with the European Union, during which it has applied all existing EU laws and has traded internationally as if it were still in the EU. At the time of writing, a trade deal between the UK and the EU remains to be agreed, leaving much uncertainty as to how the UK will trade with the EU from 1 January 2021. This uncertainty extends to how the UK will trade with African countries from 1 January 2021.

Whilst the views of experts vary on the impact of Brexit on trade between the UK and Africa, it is clear that change is coming. These changes will present both obstacles and opportunities to businesses in the UK and Africa and those that are well-prepared and informed will be best placed to navigate these changes.

In this month's newsletter, we consider how some aspects of the relationship between the UK and Africa will change post-Brexit, including not just trade but also development, as the UK seeks to become a more dominant player on the world stage outside of the shadow of the EU.

To read our insight on how the relationship between the UK and Africa may change after Brexit, click here

Finally, we would like to thank all of our guests who have contributed to this edition.

Guest Editorials

Brexit: Implications for Trade and other legal arrangements between the UK and Kenya

Richard Harney, Managing Partner, Bowmans

With the impending end of the transition period between the UK and the European Union (EU) all eyes are on whether there will be a deal or not between the UK and EU. Meanwhile, in anticipation of Brexit, the UK has been busy settling new trade deals with its important trading partners all over the world. And Kenya is no exception.

To read this guest article click here

UK-Africa relations after the end of Brexit transition

Barnaby Fletcher, Associate Director, Control Risks

The transition period will come to an end on 1 January 2021 and the true effects of Brexit will start to be realised. Africa will not be spared the disruption. Continuity agreements that “roll over” the terms of the EU’s Economic Partnership Agreements (EPAs) are in place with a significant number of African countries and regions, and these will undoubtedly help minimise confusion and additional barriers to trade.

To read this guest article click here

Impact of Brexit and the commodities market of East Africa

Nick Kwolek, Founder, Kwolco

On the third of November of this year, Kenya and the UK inked a landmark post Brexit trade deal. This was to a degree to the chagrin of the rest of the EAC (East African community) as Kenya was seen as ‘going it alone’.

To read this guest article click here

Final stretch for Brexit: What does this mean for Africa?

The UK and European Union are currently in the final stages of negotiation on the terms of their ‘divorce’. The talks have been characterized by a lot of talking, sulking, walk-aways, and renegotiations. It remains to be seen if the process will end in a deal or no deal as to the terms of trade. While the bickering goes on between the ‘parents’, it raises the issue of what will become of the ‘children’ after the break-up.

The European Union is one of the major trading partners on the African continent. Countries like South Africa are the largest beneficiaries of this trade. Trade arrangements with the UK were initiated within the auspices of the European Union. As the UK sets out on a solo mission, what will become of these deals?