Pressly: Brexit – the great disruptor – gaps opened for SA

By Donwald Pressly*

Donwald Pressly, Cape Messenger editor.
Donwald Pressly, Cape Messenger editor.

The word “disruption” is the latest buzzword of people who know anything about smart technology. The new technologies of the fourth industrial revolution – which strip away financial borders with a touch of a smart screen – are the new pen and paper of top executives who are identifying new ways of doing business. They are crashing down borders. In fact, politically-defined borders are becoming irrelevant.

This week Cape Messenger and Omega Investment Research conducted a workshop on the implications of the Brexit vote for South Africa – but in particular for the Western Cape economy. Brexit has been identified as the great “disruptor”. It has disrupted the pretty staid politics of that nation – Prime Minister David Cameron is going by October and it now looks like the Home Affairs secretary Theresa May will become Britain’s second female PM – and the financial markets, both in London, Europe and the rest of the world. Britain has two years to work out the new trade and financial regime that will come into effect.

The workshop ended on a positive note. Chris Hart, Leapfrog Global director and market analyst, made a simple point: Regulations don’t do business any good. In fact they tend to throttle business. In fact, he took it a further step: “Regulation spawns corruption.” The sooner the UK leaves behind the European Union red tape the better. Another great advantage, Hart pointed out, were that resources currently being “sucked out” of the UK to pay European politicians and their avalanche of civil servants would be re-directed to Britain.

South Africa gives Britons a lot of bang for their buck

South Africa, the Western Cape and, indeed, Africa need to see the gap that is opened up by Brexit. It is the opportunity for jolly positive disruption. Business people need to swoop in, to take the new market gap. With technologies that can put a business in touch with millions of people in an instant, identifying export gaps that arise in Britain as well as Europe will be as easy as winking. Absa’s agricultural marketing man Johann van der Watt, said there are excellent opportunities going untapped for SA avocados and blueberry products – quite apart from wine and fruit – in Britain. We also need to tell the world – including Britons – that South Africa gives you a lot of bang for your buck, or rather pound sterling. We should be throwing open the doors to UK tourism. For most Britons coming to South Africa on holiday would mean a few weeks in guest houses and hotels may prove cheaper than staying at home in the UK!

Read also: From ‘Big Bangs’ to ‘Swiss Effects’ – 5 Brexit scenarios that could impact SA

The UK will be stripped of thousands of EU regulations that have a bearing on trade. Andre Gouws, independent economist, said one of the scenarios of the UK breakaway is that the UK would have to repeal, re-enact or renegotiate 5000 regulations, directives and decisions relating to the internal market and 1 100 international treaties between the EU and other countries. It could also reignite the Doha round – which had faltered – and there was likely to be “a better focus” on developmental issues. Also agricultural subsidies for the UK will fall away. He predicted that African exports – including agricultural products – were likely to grow if things pan outright. It most likely that the UK will become more attractive to investment as its forges a new world trading identity. That surely, is good news ahead?

  • Donwald Pressly, Editor Cape Messenger
Visited 57 times, 1 visit(s) today