CTA: The Confederation of Economic Associations of Mozambique

Interview with Rogério Manuel, President of CTA (Confederation of Economic Associations of Mozambique) and Chairman of CR Aviation

What are the biggest challenges that you are facing now?

There are a few big challenges. But mainly I would like to focus on the implementation of the local content law, even if a few proposals and surveys are already been done on this regards, it is still a challenge. Moreover the fact that Mozambican SMEs are not involved in big projects this is also a challenge. If we want to develop the private sector, SMEs have to get involved and this is done by implementing the local content law, so one challenge solves the other. However, it takes time to discuss a law and we are currently working on it, checking how Mozambican SMEs can get involved in these big projects that are taking place in the country.

We have visited several countries, performing seminaries, taking business portfolios and presenting opportunities in Mozambique, looking for partners for joint ventures and alongside the government we are trying to work on an Investment Promotion Centre for Mozambique.

The other challenge is to self-sustain our institution. When I became CEO of CTA, the institution was self-sustaining in about 20%, but now it’s at 52%. We have to understand that no one gives nothing freely, and we would like the country to finally achieve some peace, because currently we are in despair. The north has floods, the center has war, and the south has droughts. There is no place in the country were we can say that the private sector is more or less at ease, if it’s not political problems, it’s war, if it’s not war, it’s floods, if it’s not floods, then droughts. The institution has to get involved as the face of the private sector in Mozambique, proving healthy discussions between the government and the private/public sectors. This to say that in 2016 we will have to sit down and discuss these general matters.

Internationally speaking, can someone offer you help?

We have been having some international help. CTA has several memorandums of understanding with its liaison bodies in the region, in Brazil, America, Europe, etc. Our liaison bodies, such as Chambers and other public bodies, with whom experience is exchanged, have been explaining to us how the private sector was developed in their countries and we are fighting to achieve what they accomplished. This to say that we welcome everyone’s support and international mega-projects coming to Mozambique should rely on the locals, it would be a win/win situation for the projects/companies, as well as for the country and community.

Do you have covenants with international bodies?

We have visited several countries, performing seminaries, taking business portfolios and presenting opportunities in Mozambique, looking for partners for joint ventures and alongside the government we are trying to work on an Investment Promotion Centre for Mozambique, which will promote business opportunities in the region. As the private sector, we are trying to present the business environment in Mozambique to other world cultures, showing how important it is to invest in Mozambique. Many of our business meetings throughout the world, in the USA, UK, Portugal, France, etc., have this as a goal. Many times, it is the CTA that chooses the business assembly who is going on these missions alongside the government, carrying out seminaries where our Head of State is also present to incentive partnerships and investments, aiming at the development of the country.

Can you tell us where the next events will be held?

The next one is set for the UK, where our Foreign Affairs Minister will be present. Germany as well, with the presence of our Head of State, and then a few other countries, which will also count with the presence of our Head of State.

Can you tell us a little bit about your company CR Aviation?

My company is one of the biggest in the aviation sector in Mozambique. There are two other in front of mine, LAM, a public company, and a mixture of public and private, called MEX, making mine the third on that list. My company is linked to tourism, providing charters and aerial photography. We have many planes to travel all over the country, inclusive the islands. I have planes for short tracks, the ones in the islands and other planes. My company is more oriented for tourism and charters as I said, and even with the tourism crises in the country, the company is in a good place. If we are honest no one wants to travel to a place where there are political and military problems, people want to travel to a good place where they can relax. This crises brought a drastic fall to the touristic sector in the country, which affects my company in a certain way, but we are holding on.

What are the destinations which bring the highest revenues to CR Aviation?

I have several flights from Vilankulo to Bazaruto Island and also to Pemba. There are many tourists vising islands. I make the connection flight from South Africa to Cabo Delgado or Vilankulo. Those are profitable.

You fly from Maputo as well?

Well, in Maputo there’s MEX or LAM who can fly tourists from Maputo to the Provinces, but I can take them from the international airport to the islands. I have also done many flights from Maputo to Gorongosa, which is where the best reserves are. Nonetheless, and due to the political and military conflict, no one wants to go there, so that route is a bit slow nowadays. Nevertheless, if we are talking revenue, those three are most profitable.

Concerning farming, can you tell us if it is an underdeveloped sector, what are the main focus of this sector, etc.?

I love farming, not because of the income but because it’s a passion of mine, I love working in cattle farming. It’s an activity I started in 1999 and I have one of the biggest farms in the south, with many animals, I am probably the 3rd or 4th biggest breeder in the south, I love it. I sell animals to slaughterhouses, because I don’t have a slaughterhouse myself, I only breed and sell. They slaughter and package to sell the meat. Also I deliver males to farmer communities, for them to work on cultivation and breeding. Then I plant rice and I have factory that peels and packages rice for retailing. I produce natural rice, without chemicals. This year was a bad year though, there was no rain and we have no water for production, consequentially there was no rice, and with the droughts the animals are also dying and there’s no money to buy rations.

As the president of CTA, where do you see the private sector in Mozambique in 2/3 years’ time, if the crisis finally ends?

The three sectors that will boom for sure and therefore help this country to develop are tourism, energy and agriculture. I don’t mind about the oil and gas sector, because it will end one day, and the prices oscillate. But sectors such as agriculture need investment. Agriculture will never end: people need to be fed. Tourism is also important as it helps people to relax. Lastly, energy is a necessity and it can even be exported to the whole region.