Editorial

Prepare for change

The next time we go to press, the UK will have had a general election. As the debate heats up and the major political parties battle for the business vote ahead of 4th July, the wish list of UK treasurers is familiar to treasury teams in other jurisdictions going to – or just back from – the polls.

They want the election to produce a clear leader with a strong mandate to make consistent policies that support investor confidence. Our readers list demands like upgraded infrastructure, an overhaul in the planning system; investment in apprenticeships and tax breaks to support new technology and the energy transition.

In the absence of clarity on what the next five years holds, it’s not surprising this edition reflects today’s cautious sentiment. Like our Back to Basics feature, which finds that while some sectors will see an increase in M&A activity this year compared to 2023, geopolitical developments and concerns around interest rate and currency movements are acting as a brake on many potential deals.

One of the most important corporate relationships in times of uncertainty is banking partnerships, often decades in the making, especially when it comes to cash management services. This month we explore how treasurers should frequently reassess whether the relationship remains fit for purpose and are the strongest possible. We determine the optimal number of banking relationships and accounts, the right equilibrium between efficiency and resiliency, as well as the appropriate mix of capabilities and funding support.

It is at times of uncertainty that corporate’s also need their treasury in the very safest pair of hands. Fittingly, this edition’s Corporate View speaks to Royston Da Costa, Assistant Treasurer at Ferguson. With nearly four decades of experience, Da Costa is a seasoned treasury professional with extensive knowledge of processes and automation. He explains how he is driving Ferguson’s strategy on treasury technology.

In our Question Answered feature we explore how corporates operating in regions like Africa and Asia can avoid and free, trapped cash. Sidhanth Hota, Group Treasurer at Airtel Africa explains how managing trapped cash in Africa requires a combination of patience, waiting for regulatory environments to shift, and a preparedness to hustle.

Finally, this edition takes a deep dive into the rise in digital marketplaces as companies develop new ways to connect vendors and their customers. We find out what’s driving this trend, the benefits for the different parties involved, and the role of treasury in supporting this increasingly prominent way of transacting.