Learn the lessons of Brexit

HANG on tight. It is going to be a bumpy ride. Yesterday President Jacob Zuma and Finance Minister Pravin Gordhan tried to reassure jittery citizens alarmed by the UK voting to leave the European Union.

The shock decision has huge implications for the future of the EU and for tumbling financial markets. One immediate effect was on the rand, which dropped as much as 7.8 percent against the dollar, before recovering slightly.

Concerning is the impact on our trade with the EU and UK. Economists have predicted the UK economy will shrink, and so will the EU, with the loss of one of its biggest economies.

Zuma said the UK would remain an important trading partner, with R41bn in exports last year and imports of R35bn. There was time to adjust to the new reality as the UK had two years to negotiate an exit.

Gordhan said our banking and financial institutions can withstand the financial shockwaves from Brexit. He needs to stimulate economic growth and encourage investment in an economy under scrutiny from rating agencies. Gordhan said there was even more reason for government, labour and business to work together to weather these uncertain times and create jobs.

But what will be the impact on global politics of Brexit? UK prime minister David Cameron has lost his job.

The British working class, worried about immigration and the control of EU bureaucrats over everyday life, voted to leave. The Brits have taken back their country.

But for how much longer with Scotland, which voted against leaving, threatening to quit, and Northern Ireland politicians calling for that region to join the Irish Republic.

One of the positive outcomes is the realisation by EU’s leaders that to survive, it needs to respond to the fears of ordinary people.

It is a lesson South Africa’s political elite should take to heart.