Implications of Brexit: the possible impacts on the Zambian economy
As Britain focuses on how its relationship with the European Union might look like once it leaves the bloc in April 2019, African countries and Zambia in particular that benefit from UK development aid are already bracing for the post-Brexit era. For a country with bilateral relations with Britain and the European Union , preparing for the inevitable separation is not only prudent; it may be a matter of economic requirement. At this time, many analysts are trying to answer a complex and important question: how will Brexit impact the Zambian economy? Aid and budget support The UK has pledged 0.7% of its Gross National Income (GNI) as development aid, a significant portion of which is earmarked for development in African nations. Depending on the political focus of Westminster and impact of Brexit on the UK economy, aid contributions may be slashed. Many economists have predicted a recession which might cause a reduction in UK’s GNI and consequently lead to ...