Treasury Verdict Southern Africa

Nov 8th 2013 | Middle East and Africa

INTRODUCTION

Treasury Verdict is the electronic voting and panel discussion held at EuroFinance events worldwide. This report is based on the votes of corporate treasury professionals, bankers and other vendors and advisers who attended EuroFinance’s 8th annual conference on Treasury, Risk and Cash Management in Southern Africa, held in Johannesburg, on 5 and 6 November 2013.

Commentary was provided by these panellists:
• Tatiana Nikitina, Cash & Banking Analyst, British American Tobacco, UK
• Mark Schwartz, Treasury Manager, SABMiller, South Africa
• Martin Kussel, Corporate Sales Head, Treasury Services, SSA, J.P. Morgan, South Africa
• Peter Green, Senior EuroFinance Tutor & Director, Transactionbanking.com, UK (conference chair)

Key findings
• Nearly six out of every ten treasury and finance professionals in Southern Africa (58%) feel more confident about their business’ prospects in the next year. This means Southern African treasurers are far more optimistic than most of their peers in Europe, who when polled last month only had a business confidence rating of 38%. [Question 1, see Global Context]

• A majority of treasurers in Southern Africa (60%) believe that the rand should be seen as one of the ‘fragile five’ currencies, alongside India, Turkey, Indonesia and Brazil. [Question 2]

• Currency weakness is also top of mind for treasurers in Southern Africa when they think about the performance of the rand against the US dollar over the next year. A majority of 59% believe that the rand will depreciate by between 5% and 15% against the dollar during this time. Some 21% say it will actually appreciate 5-15%, while 18% believe the ratio will remain about the same. [Question 2]

• Over two-thirds of Southern African treasurers (68%) say that supply chain finance is important to their organisation. This is significantly higher than their European peers (54%). [Question 5]

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