Jun. 30, 2015


 João Chiboleca

Mozambique

João Chiboleca

Managing Director, Globo Distribuidora, Lda

TBY talks to João Chiboleca, Managing Director of Globo Distribuidora, Lda, on the strategy of pursuing sustained growth and client diversification.

BIO

Born in Mozambique, João Chiboleca has experience in international freight forwarding, logistics and transport dating back to 1985, and received professional training in London, UK in 1990. Before establishing a joint venture with his brother in 2008 he had worked for Mozambique’s first International Freight Forwarding State Owned Enterprise of independent Mozambique, Mocargo (privately owned since 1995), ultimately becoming a National Import & Export (Mofrete) Business Unit Manager, and subsequently Business Development Manager until mid-2008 before resigning from that company.

How has the company developed since it opened for business back in 2008?

We are a 100% Mozambican company with two shareholders, namely myself and my brother. Since 2008 we have experienced gradual growth, which has proven to be a wise approach. We have provided international freight forwarding, logistics and transport services to a diversity of clients, including certain state enterprises such as FUNAE, MCT and EDM-Electricidade de Mocambique.

What are your key strategies over the next two years?

Our underlying objective is sustained growth. We have also been a logistics service provider for Movitel, having undertaken about 90% of its logistics services. We have recently purchased a fleet of large trucks and are set to expand it with four or five additional vehicles. We also undertake all customs clearance and transportation of materials for those mentioned and other main clients, which is a major challenge. Meanwhile, we have successfully finalized negotiations for the transportation of equipment to a gas plant in Ressano Garcia. Additionally, we provide all logistics and transportation services for one of our main clients, ELTEL NETWOKS, which is constructing a high voltage power line from Ressano Garcia to Morrumbene. We are still looking for new opportunities, but our core business is international freight forwarding, global logistics and transportation of any of non-prohibited cargo into and out of Mozambique, as well as in-transit cargo to and from Malawi, Zambia & Zimbabwe via Beira and Cuchamano Border.

How many TEUs are you moving a year?

In 2011, the number was at 1,220 TEUs but in 2012 declined to around 800 TEUs. In 2013, we faced substantial losses due to instability in the central provinces of Mozambique, as a result of which we lost significant business, although in 2014, we saw recovery. I believe that we will reach 1.500 containers by the end of the year, while in 2015 the figure will likely double to 2,000 TEUs, mostly due to trans-clearance. For example, while overseas recently we secured a new contract for the transit clearance and transportation of goods in transit via Maputo, alone amounting to about 900 containers, and we have a further 500 to Mozambique to be handled shortly. This single project for the high voltage concession line alone is estimated at 700-800 TEUs, and for the same project we have handled about 150 TEUs already.

What sectors do you work more extensively with?

At the moment, we are aiming at local projects with the Mozambican government's Ministry of Science and Technology (MCT). This concerns the improvement of rice and maize production in Maputo Province, Mania Province, Sofala Province, Tete Province and Nampula Province. In general we consider the agriculture, mining, power and energy sectors to see the most prominent growth, naturally, aside from the oil and gas.

Which are Mozambique's key trading partners?

South Africa is the biggest in the region, while overseas China is one of the most prominent investors, in addition to India and Vietnam. In Europe, we trade with Portugal among other countries. Two or three French companies are active in the hydroelectric sector and we rank among their service providers. Meanwhile, we also work with Norway and Denmark.

What is the potential for Mozambique to become an international hub in Southeast Africa?

The recent discoveries of natural resources like the minerals in Tete, as well as the discoveries of gas and oil, as well as marble, heavy sands, Graphite and other minerals make Mozambique highly attractive, and one of the fastest-growing countries in the region. As long as there is political stability, we expect the economy to experience rapid growth.

How would you describe Mozambique's business climate in terms of establishing a new company?

Today's environment is better than when we established our company years ago. Related procedures have been simplified in the wake of extensive reforms the government has implemented to expedite company registration. The Ministry of Trade has been in regular contact with the private sector through the Confederation of Business Associations of Mozambique (CTA).

What are your goals for the coming five years?

If business goes according to plan, we intend to rank at least among Mozambique's top ten logistics companies. We plan to purchase around 10 trucks in 2015, which would ultimately reduce our costs and boost profitability.

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