With Britain voting to leave the European Union (EU) there has been plenty of speculation on how this decision will impact financial markets and the global economy - and most importantly how it will affect South Africa. While speculations are abound, economists point out that the real impact will be determined by what the exit entails and how it will be implemented. They project political and economic uncertainty for at least the next two years as Britain starts the process of exiting the EU.
While there’s uncertainty over the impact of Brexit, what remains evident is the drastically changing economic, social and political environment across the globe, which South Africa is also a part of. The volatility of the rand, interest rate hikes and general slow economic growth have put pressure on both South African consumers and businesses, making the need to find ways to grow the economy ever more urgent. It is against this backdrop that the SAIA is becoming more involved in broader discussions with other financial sector stakeholders and other key stakeholders to find solutions to address the country’s economic challenges, especially in alignment to the National Development Plan.
As the SAIA, we believe that collaboration and strategic partnerships with other stakeholders will increasingly play a critical role in helping to find solutions to South Africa’s economic growth. Our industry initiatives such as the Agriculture Insurance project and the work being done in the Motor Transformation and Sustainability Forum (MTSF) amongst others are some of the projects where partnerships and collaboration play a pivotal role. As we seek to become more involved in the broader economic discussions, we will continue to engage meaningfully with all relevant stakeholders.