Hélio Mahanjane

Hélio Mahanjane

Board Member, Elevo Group
Gaspar Gigante

Gaspar Gigante

Chairman, Elevo Mozambique

What motivated MonteAdriano, Edifer, Hagen, and Eusébios to come together as Elevo Group, and how has this enhanced its capabilities?

HÉLIO MAHANJANE The name Elevo has arisen from the combination of these four Portuguese construction companies. Edifer was specialized in building infrastructure projects, and MonteAdriano in hydraulic projects and freeways, while Hagen and Eusébios worked on other infrastructure projects, such as bridges. And as a result of this association, Elevo acquired the ability to operate across the wide range of fields pursued by the formerly separate entities. Besides these four construction companies, another three enterprises belong to the Elevo Group: Tecnasol, an enterprise that specializes in geotechnical studies and foundations, Edimetal, which works on the façades of buildings, and Ecovisão, an enterprise that works in the environmental field, producing environmental impact studies and supporting the group in fields such as hygiene, safety, and quality certification.

GASPAR GIGANTE The principal motivation for being part of this corporate group is the ambition to strengthen the group by developing an internationalization strategy and promoting sustainable growth without boundaries. The individual trajectories of the four companies each made Elevo Group what it is today: a bold operator in a competitive market, with an enviable record of engineering and civil construction projects, and leading technical and human resources. We believe that Mozambique has great potential for growth in many areas, specifically in construction, civil engineering, and public works projects. However, in order to meet the requirements of these projects, the country will need to close its considerable infrastructure deficit. The Mozambican market will represent 25% of Elevo Group's global turnover. That translates into a turnover of around $250 million in Mozambique alone.

Which of Elevo Group's focus areas today display the greatest growth potential in Mozambique?

HM In my view, given Mozambique's growing need for a strong logistics system, road infrastructure projects will prove to be crucial, and not only the building of new freeways, but also their maintenance. Railways and hydraulics are also the primary areas that will need new investments over the coming five years. Specific projects, like those in Tete and Nacala, will receive further investment enabling us to continue working on existing ones. We need railways in order to export coal, and the highway network also needs to continue developing. Mozambique is witnessing consistent growth, and its logistics capabilities need to grow in step. Its highways need to be usable all year round. We should also address the sphere of hydraulics infrastructure, which though vital, is occasionally overlooked. The country alternately sees seasonally high rainfall and dry periods resulting in water shortages. This underlines the need for hydraulic systems and dams, enabling the storage and use of water at power stations and for irrigation purposes. These are areas in which we really need to invest, to ensure that our water need makes the most of the seasonal precipitation. We also pursue initiatives launched by the Ministry of Public Works, that include a series of public examinations, or public-private partnerships that are geared at addressing such issues as dams, hydro-power plants, and irrigation.

GG The group is still young, and yet we are already engaged in a series of projects of which we are quite proud, and for which we have high expectations. The rehabilitation of the EN1 between Rio Lurio and Mecutuchi Bridge, a total of 74.7 kilometers of road, was a major undertaking and a success. There is no doubt that this is our signature project, due to all the challenges we underwent leading up to its completion. Edimetal operates in the area of civil metalwork, and is capable of applying the most sophisticated techniques in the construction of aluminum façades and window systems. The pedigree of its work is recognized throughout the market, even beyond its areas of expertise. What's more, we have an excellent record in the field of hydraulic infrastructure construction, ranging from earth and concrete dam construction to the building of sewage networks, potable water systems, and sewage treatment systems.

What are your plans for Elevo in Mozambique?

HM We have set the ball rolling on our commercial works in Tete, Nacala, and Cabo Delgado. We have been working with a number of multinational companies that will be involved in our constructions, including the highways and gas infrastructure projects in Palma. We have also been working with these companies on a series of projects related to Nacala harbor. Additionally, we have projects in Tete, and are paying close attention to further opportunities arising there. We have been scanning the public works taking place in the highway infrastructure sector. And beside the ongoing gas and oil related activities in Palma, coal in Tete, and infrastructure and logistics in Nacala, we have been following works related to public-private partnerships regarding freeways with entities linked to the Ministry of Public Works. We are very well placed in the market, and envisage growth of as much as 300% in 2014 and 2015, enabling us to become one of the largest companies in Mozambique.

What makes Mozambique attractive?

GG I believe that Mozambique is an attractive spot for foreign investment due to the strength of its available natural resources. This has enabled the realization of a number of megaprojects. Due to the absence of infrastructure to accommodate these investments, there is a resulting demand for the construction of the required infrastructure, which generates further investment. The growing real estate potential is another point of attraction for private investments, especially in Maputo and surrounding areas where megaprojects are due to be located. There is also a need for the construction of an adequate transportation network compatible with the requirements and demands of the country; this represents another huge commercial opportunity.

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