Best Practices: Manage Cash Flow

World Bank: Egypt's GDP, non-oil cash flows could grow significantly

Today, high quality of service has replaced low price as the standard when companies shop for banks to support their cash management business. And banks offer automated processes such as payroll and accounts payable along with electronic data interchange (EDI), making outsourcing affordable and secure from theft. Companies also consolidate their accounts, using fewer banks. This way they can rely on these selected few banks as partners but are not dependent on a single bank. When shopping for a banking partner, companies review cash management needs thoroughly by gathering input from all departments the bank may affect, examining how well current banking needs are met, and spelling out expectations for meeting future needs. Because the information systems that link banks and companies are so complex, once the choice is made, changing banks can be costly.

In its new report, Global Development Horizons 2013, the bank predicted that Egypt's attempts to implement sound macroeconomic policies would lower the risks faced by investors and increase private investment flows to Egypt. The report added that cash flows from non-oil economic activities would rebound once political tensions subsided, but also cautioned that the strong gains in Egypt's tourism sector had not yet brought its income up to 2010 levels. The World Bank anticipated that the approval of an IMF loan of US$4.8 billion dollars in 2013 would open the door The Elevation Group to the flow of additional aid from other donors, whether bilateral or multilateral, which would largely enhance and improve Egypt's foreign exchange reserve in 2013. The report said that the planned reduction of fuel subsidies and tax reforms would cause the financial situation to significantly improve and would provide resources to the private sector.