Citi Perspectives Fall 2019

Alouis Ngoshi EMEA Regional Treasury Director, Cummins Melissa Howe Banking Specialist, Booking.com Foluso Ayo-Olaiya Nigeria Head, Sales, Treasury and Trade Solutions, Citi Geoffrey Gursel Sub-Saharan Africa Head, Corporate & Public Sector Sales & Implementation, Treasury and Trade Solutions, Citi Africa is a continent of vast opportunity. But leveraging the African success story requires genuine insight into the disruptive trends that are helping to shape Africa’s transformation. A recent Citi roundtable highlighted how treasury is evolving on both sides of the continent, and how treasurers can play a role in putting Africa firmly on the corporate map. Treasurers looking to operate in Africa, and those already on the ground, will always benefit from the experience of those who have gone before them. Insight that comes only from a practical understanding of what it is to trade in different parts of this continent, helps shine a light on just how much of an opportunity awaits those who choose to do business in a modern, progressive Africa. Centralization is rapidly evolving For European or American corporates operating a treasury hub in Africa, approaches to centralization are being redefined, as a result of regulatory changes and technological evolution. As Geoffrey Gursel, SSA Head of Corporate & Public Sector Sales & Implementation, Treasury and Trade Solutions, Citi, notes, this requires treasurers to ask more pointed questions as to where people are needed locally. Traditional treasury hub locations, such as Johannesburg, Cape Town and Nairobi, are no longer the only options. The ongoing assessment as to where to establish a treasury hub for Africa is still evolving, notes Gursel. “Tax is the obvious core component of a treasury location strategy — and South Africa has always been the gateway to treasury control in Africa. However, due to a variety of macro- and micro-economic factors, South Africa is being challenged as the premier location,” he comments. This realization has afforded Mauritius’ rise as a potentially tax-efficient location, dependent on each organization’s unique situation. The country’s government is also courting the fintech community, allowing vendors to leverage the island nation as a tech hub for the whole continent. Unlocking Africa — Treasury Holds the Key 10