President Zuma notes the outcome of the referendum in Britian (Brexit)

24 June 2016

Government has noted the outcome of the referendum in Britain (Brexit). It will take two years for the institutional changes that this vote implies to be negotiated and we remain committed to retaining strong trade and financial relations with both Britain and the European Union.

The uncertainty that arises from this vote means that the volatility that has characterized capital markets in the lead-up to the vote may persist.

The National Treasury and the South African Reserve Bank have been in discussions with financial institutions on the possible implications for the South African economy. Our banks and financial institutions are well positioned to withstand financial shocks to the system as demonstrated in previous episodes including the 2008/09 global financial crisis. We are therefore confident that our financial system including the banks and the regulatory framework are extremely resilient and reliable.

The Reserve Bank and the National Treasury are closely monitoring the unfolding developments and will advise the South African public where necessary.

In this context, our ongoing efforts as South Africans, government, business, labour and civil society to reignite growth become that much more urgent and critical.

Issued by Bonbani Ngqulunga on behalf of the Presidency, 24 June 2016