Intelec Holdings: Important Projects in Energy, Telecoms and Agriculture

Interview with Afonso Loureiro, Commercial Administrator at Intelec Holdings

Could you briefly introduce Intelec Holdings?

Intelec is one of the oldest private companies that started operating in Mozambique when the country first began to open its economy. Its roots are in the energy sector, but since then it has moved on to telecommunications as well. Today, it is a very diversified group, which also has industrial developments in agriculture, in tourism, trading and services in logistics, looking especially at what is going to happen in the future regarding oil and gas. So the company is very varied, but nonetheless maintains a core focus on telecommunications and energy.

What are the major developments in the energy sector?

It has been common knowledge for a long time that Mozambique has great potential, especially concerning hydroelectric energy, which we have been exploring for more than 25 years. There is still great potential to export, but the big news that is now widespread is that one of the biggest gas reserves in the world was recently found in northern Mozambique. These reserves have not yet been explored, and this is why we are still talking in terms of potential and all the things we expect to happen in the coming years. In the south of the country we have been exploring the smallest reserves for more than 10 years, and today we are using them to generate power in Mozambique, and our company is involved in some of the projects. When this project was initiated we were only exporting the gas itself, and now we are also using the gas to promote economic activity and development in the Mozambican market.

What is your view of the telecommunications sector here?

I believe that it is flourishing all over the world, but especially in Africa, because the continent has a lot of land and people to cover and to integrate in the telecommunications area. So I think we will continue to grow in the next years. We have some advantages here because we are still investing in the networks, and this enables us to benefit from the latest technologies. As a result, people start to use more sophisticated services, at good prices. We have also enjoyed some positive experiences with mobile, so I think we can expect more clients to be integrated in the next years.

What can be expected in the agricultural sector in terms of projects?

We do indeed have some experience in that field. The project I would like to highlight is one that we have been working on for the last 5 years in the province of Zambézia. Since colonial times, the province has maintained a large emphasis on agriculture, mostly due to its climate, its land, and also some logistical conditions. Our project specifically involves growing soya. Now in our fourth year of production, we are producing soya on 3000 hectares of land, and counting. When we started, our objective was to export the output, but what we have found is that the local market is – until now, at least – covering all yield.

When you look at Mozambique and all the difficulties specific to the country, being able to count on a local partner allows you to find solutions, to acquire quick information, and to effectively plan your activities.

So I would recommend that companies also take a look at the potential in agriculture, and I think there is space to do much more. Of course we always have to look at the local conditions, local populations, in order for everyone to be properly integrated. We are talking about land, which is a very sensitive thing all around the world, and especially in Africa. But if you do it right, you can have great success.

What kind of partners would typically be interested in this project?

I envisage partners coming from countries with experience in production. There are many South American nations with vast experience and access to international markets that also possess capital that they are looking to invest. What is more, I think that if we turn our attention to Asia, there are some potentially interesting investments over there as well. In Europe and the USA, I do not know, but I am perhaps thinking more about developing countries, with conditions more akin to those in Mozambique.

Apparently you also have a lot of projects within the energy sector that could be of interest to international investors?

Yes, our energy projects cover everything – the design, the maintenance, the construction of all kinds of grids, and also power generation. We have smaller projects that we can talk about (40 megawatts, for instance), but we can also look at very big ones, and I think there is a great need for energy, not only in Mozambique but right across the SADC region and all its neighbouring countries. What is more, we can focus on very large projects, and we have some ideas in this regard that would allow us to produce energy in Mozambique. I think there is space for this kind of venture, and I encourage everyone to consider Mozambique’s credentials in this area.

Why should individuals be interested in partnering with you? What are the major competitive advantages that you offer?

When you go to a foreign country and you know very little about the local conditions, having a partner there means that you can save a lot of time studying the market, the local regulations, and discussing both financial partners and human resources. So we can give a lot of support from the back office, and in particular on logistics. When you look at Mozambique, at its 3,000km of coastline, and all the difficulties specific to the country (transportation, for instance), being able to count on a local partner allows you to find solutions, to acquire quick information, and to effectively plan your activities.

What is your vision for the company in the middle term?

Our strategy is to concentrate and focus on our core business. We are looking at more schemes and to develop what already exists on the energy side of things. For instance those big projects: I would like to be present at a big project of generation.

Also in telecommunications it is important that we keep growing. We are partners and shareholders for Vodacom in Mozambique. Although, when we started, Vodacom was not the market leader, it now occupies this top spot, and we would like to grow even more and to cover certain areas of telecommunications that are not yet dealt with.

What is more, we would like to look at strategic centres like agriculture and industry, which are strategic for the country, and which add great value to the economy.

What would be your final message about Mozambique?

I would like to say that, besides the good climate, one of the best things you can find here in Mozambique is the quality of the people themselves. I think that everyone will find a friendly environment here, full of people that want to grow, to act, and to learn.