At Mageia Partners, we advise not only mid-cap and large corporations, but also the Public Goods and Governmental Services!
Supporting a State strengthening its cash management processes, requires a very specific mindset and ethics, encompassing adhering to the Public Sector specific governance as well as to the philosophy “Res Publica”, that both quite differ from the Private Sector’s traditional demand.
In terms of cash management, “best practices” are articulated around 3 main domains:
- Maximizing the consolidation of cash: it means ensuring that there is a Treasury Single Account (TSA), so that the State’s liquidity position is known at all times, thus limiting its scattering, a source of inefficiency and costs.
- Fine-tuning the cash flow forecast (ideally rolling on a daily basis with a horizon of one year): it allows the State Treasury to be able to safely settle all its incoming expenditures.
- Dynamically managing cash: it streamlines the cash curve peaks and valleys, therefore reducing the amount of idle cash (allowing short-term investment in maximum security conditions “overnight depo or repo”), and also enabling efficient short-term borrowing on the money market.
Mageia Partners has successfully assisted a delegation from a country in the WAEMU zone to benefit from inter-state experience in cash management, on organizational, process and IT aspects!
Inspiring presentations, energizing debates, and an outstanding human experience!
