Sub-Saharan Africa – Global Treasury Intelligence Reports
As a war torn and famine stricken country, it is not surprising that Ethiopia is a difficult place to do business. But, with a population of over 100 million people, it is the second largest country in Africa (after Nigeria), so economic activity does take place. Items deemed essential, such as medicine and goods required for building infrastructure, can be imported, but long payment delays are not uncommon. Importers find local currency building up from their local service operations: the absence of foreign banks makes it challenging to manage this. Most have decided to set up a local treasury team, and one operates via Djibouti.
This report focuses on trapped cash, evaluating the options treasurers are considering for cash repatriation and local investments / deposits. Approaches to hedging, lessons learned and initial thoughts on the eNaira were also shared.
The immediate trigger for this call was a recent move by the Nigerian central bank, which devalued the naira and made a move to unify the FX market by eliminating the dual rate system, which provided different official rates according to the use of… Continue Reading “Treasury & FX in Nigeria”
Angola presents very tough challenges for corporate treasurers, especially when oil prices are low. In this call participants shared experiences in accessing hard currency, repatriation of cash, banking relationships and local investments. The call was expert chaired by Arnaud Francq Key Take Outs are… Continue Reading “Treasury & FX in Angola”
Treasurers describe their company’s
current approach and recent experiences in repatriating cash to HQ from NIGERIA and answered each others’ questions.
Call date: 5th November 2019 In this call, members shared their approaches and current challenges in treasury & fx in South Africa, including: Cash repatriation Hedging ZAR Intercompany netting Moody’s downgrade Cross border pooling Local banking Reserve Bank appeals The call was chaired by… Continue Reading “Treasury & FX in South Africa”
Key discussion details XOF – UEMOA (Union Economique et Monétaire Ouest Africaine) the Economic Monetary Union of West Africa (WAMU) Comprises Benin, Burkina Faso, Ivory Coast, Niger, Senegal, and Togo. XAF – CEMAC (Central Africa Economic & Monetary Community) Comprises Cameroon, Central African Republic,… Continue Reading “Treasury & FX in the CFA Franc zone”
Key areas of discussion Cash repatriation Mitigating FX exposure Accessing hard currency Approvals for service contracts Local banks v International banks Local investments
Chairman’s take aways Bureaucracy – continues to be a problem & cash repatriation is particularly complex. Hedging is expensive Although the FX market has improved recently- it is still hard to get the allocation you need. Many companies are using a number of local… Continue Reading “Treasury & FX in Nigeria”