
exit from the eurozone: golden star fallen from a blue wall
News on Britain’s exit from the European Union has been received with mixed feelings from businessmen, law makers and politicians all around the globe. Many claim that the referendum vote in the UK to leave the EU is a political move but this move has major influence on trade and business activities that relate to the UK. The UK is one of the largest trade partners in Kenya and their decision to stand alone could affect the exchange of goods and services between the two. All of UK’s trading arrangements, laws, taxes and regulations are currently set by the EU law. This may not immediately change as the UK wants to maintain its trade relationship with countries such as Kenya.
With the increasing emergence of African fashion and style in the international arena, local fabric producers may suffer a blow in the export of products to the UK. The textile industry in several African countries continues to struggle and this could worsen due to the drastic fall of the British currency. Kenya may have to face lengthy renegotiations of trade deals with European countries as a result of the weakening British pound and Euro against the dollar globally and against the shilling locally. This will have a bearing on cost of exports and imports to and from Europe. Thus, exporters of fabric and other services in the fashion market may be losers as they may start earning less from their sales. Importers of British goods will have a reason to smile as costs incurred may be lower as the sterling pound weakens.
Kenya is also said to import most of its mitumba clothes from the UK and United States. With the shilling appreciating against the pound, we may have an increase in the already over populated mitumba business. Consequently, this may result to a slower rise of our local textile industry due to stiff competition from the business of second hand clothes; this is an issue that continues to worry me.
Brexit may also affect the free movement within the EU as Kenyans living in Europe or visiting may now have to obtain visas to travel to countries where they previously had easy access using their UK attained passports. With the tightening of immigration procedures in Britain, International modeling agencies and fashion schools may find it harder to scout and accommodate foreign models and fashion students. Work permits may also be harder to attain. This could see an end to international modeling careers a path which has previously been proven possible by individuals such as Kenyan model Ajuma Nasenyana , Uganda’s Patricia Akello and Ivory Coast’s Adonis Bosso.
The effect of the exit may however not be immediate as trade, foreign relations and all EU laws stay the same until a resolution is put into practice. Meanwhile, the UK and EU have two years to negotiate a leaving agreement.