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Much uncertainty in Kenya, Netherlands:
Floriculture sector regrets Brexit
Freshness - transport
Harry Bockhoff, director Dutch Flower Group, mainly fears the long waiting times, he reports to the Dutch broadcast NOS. "We have perishables, so every minute counts. We want to deliver the product as fresh as possible."And regarding the transportation of the goods, LTO Nederland hopes that the free movement of goods between the Netherlands and UK will remain.
Decrease in import
Dennis Heijnen of am association of undertakings EVO, fears for the decrease in imports from the UK due to the drop in value of the pound, he reports to the Dutch broadcast Omroep Westland. He has no doubts that companies that export a lot will suffer from this Brexit.
Weighing magnitude of exit
Kenya Flower Council chief executive Jane Ngige said the council is weighing the magnitude of the exit on the sector. “We have to regroup, look at our trading protocol with the EU and the UK, and come up with a position we can share,” she she told The Star.
Kenyan flower farms, which mostly use the euro, expect higher costs due to fluctuation of the European Union’s common currency and the pound. Central Bank governor Patrick Njoroge was quick to try and calm the markets, with an early morning statement from the banking industry regulator seeking to assure residents of enough forex reserves. “The Central Bank of Kenya stands ready to intervene in the money and foreign exchange markets to ensure their smooth operation. Other major central banks have also announced their readiness to intervene to minimise disruptions in their markets,” the CBK said in a statement at The Star.
Continue good trade relations
Lucas Vos, CEO of Royal FloraHolland already pointed out that he hopes that the good trade relations with the UK can be continued. Although the consequences of the referendum are difficult to express in figures at the moment, Royal FloraHolland, does not seems to to be affected that much due to its current British trade relations and the large amount of flowers and plants that the UK usually imports.
Not all bad news
However, it’s not all bad news for Kenya and the Netherlands. According to Quartz Africa Kenya’s ties with Britain are deep and longstanding so bilateral trade and investment are likely to continue. In some ways Kenya could even benefit, according to some analysts. The UK may be eager to establish bilateral ties after leaving the EU, giving Kenya leverage. Also for the Netherlands. According to the alderman of Amsterdam Kajsa Ollongren, the Brexit can be beneficial for Amsterdam as International business center. "In the run-up to the Referendum, some companies decided to cross the North sea heading towards the Dutch capital", reports Kasja to a Dutch newspaper; Volkskrant.
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