Today's modern treasurer is on a mission to transform treasury management. Meet the award winning treasurers breaking down silos and serving as agents of change to drive strategic decisions within their organizations.
My name is Kobus Volschenk. I'm the treasurer of Motus Holdings. I'm based in Johannesburg in South Africa. I was taught to always turn the penny over three times. These are simple principles, but they have stood me in good stead as I have taken on increasingly complex finance roles and challenges, including this one. Local South African exchange control regulations were causing some domestic and international working capital inefficiencies.
We needed a cross border banking solution to strengthen our business. It was critical for us to work with a credible partner. We needed an organization such as JP Morgan to really ensure that the global knowledge and expertise within country was available to us.
Motus partnered with JP Morgan to offer a multi-currency, multi-entity notional pooling structure based on a single time zone and location.
The beauty of this notional pool was that it wasn't limited to one specific currency. It further ensures that we are able to extract competitive interest rates and that we minimize borrowing costs as we're able to utilize the cash within the group. The term Ubuntu is something we in South Africa have grown used to. I am because we are. JP Morgan's Johannesburg team was vital to the project's success. The project brought together our two institutions with a wealth of human capital to achieve what is a first for a South African corporate. It's great for Motus, but it's also very positive for South Africa. Now that there is legal precedent for this approach, other company treasuries here can follow suit.
More than a payments partner, it's helping treasurers optimize resources and navigate change to enable better business outcomes.
Motus is a powerhouse in the automotive industry, with a presence not only in South Africa but also on the international stage, including the UK and Australia. With a workforce of more than 17,250 employees worldwide, Motus is the largest diversified non-manufacturing automotive group in sub-Saharan Africa. Its unwavering commitment to innovation and growth has driven its need for a dynamic account structure.
Motus faced working capital inefficiencies and time zone issues with the company’s main funding account held in South Africa.
"There’s no doubt that unleashing funds has increased our ability as a group. It was critical for us to work with a credible partner. We needed J.P. Morgan to really ensure that the global knowledge and expertise within each country was available to us."
J.P. Morgan Payments proposed a multicurrency, multi-entity notional pooling structure with London as the central location, which allowed Motus to concentrate available liquidity, provide funding access to the Motus group’s international entities and integrate a South African DTMC into the pooling structure. The DTMC's classification as a nonresident entity was crucial in achieving this.
With this solution, Motus entities could participate in a pool, draw funds in their required functional currency, eliminate the need for additional borrowings, and link domestic and international operations to a single location.
To learn more about cross currency solutions from J.P. Morgan Payments, click here.
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