MAKING A COMMITMENT
TBY talks to Felix Martins, Managing Director of Odebrecht Infrastructure, on investing in people, its upcoming projects in agriculture, and being socially responsible.
BIOGRAPHY
Felix Martins is the Managing Director of Odebrecht Infrastructure. He is a civil engineer, with an MBA in business management and a graduate degree in project management and corporate finance. He started his career in the Odebrecht Group 16 years ago and has served in many different senior positions, mainly in the areas of real estate and engineering and construction.What challenges is the Mozambican civil construction sector currently facing?
The costs related to logistics are one of the main challenges. We expect that with the investments expected in the gas sector, Mozambique will develop better infrastructure, particularly roads and ports. This will certainly contribute to reducing the costs of logistics. Finding skilled local employees is another challenge, especially in the construction sector, and represents a relevant constraint. However, it is the responsibility of construction companies to train these people, which represents an additional cost. To us, it is an investment in people, and one that we make in every single country where we operate. We had very positive results in the construction of Nacala International Airport and a coalmine project in Moatize. Approximately 90% of our workforce comprises local employees. We find another important challenge in materials and equipment space. Most of the goods we use have to be imported, which represents a big burden in terms of costs. Financing is also a big challenge that requires entrepreneurs and the public sector to offer different financial structures and solutions, such as project finance and PPPs.
What activities is Odebrecht undertaking in the agroindustry sector?
Agriculture is a fundamental sector for the development of the country, and the main priorities of the government are to significantly reduce poverty, increase food security, improve the quality of life of the population at large, and foster the diversification of the economy. We are developing two projects in this area in Mozambique: a poultry production project to be implemented in Zambezia province, and a cassava project in Gaza province. All in all, the required investment for both projects is estimated to be around $85 million. Both are in the final stage of feasibility studies, and we aim to launch at least one of them in 2016. An important social component for the sustainable growth of these projects is the integration in the production process of small and medium-sized local producers.
How does Odebrecht approach social responsibility in Mozambique?
We take social responsibility very seriously, and I cannot envisage a situation where Odebrecht develops project without considering its impacts on local communities and the environment. In Mozambique, we have developed a series of social initiatives such as agricultural family programs focused on empowering women and the youth to promote the generation of income and improve the quality of life of the local communities in line with the government's priorities. We believe a country can only grow if its people grow as well; this is the main reason why we focus so much on training and education and we do it because we are committed to the country's development. This year in Panama we were hired to develop two projects—one relating to the construction of the second Metro line in the capital and the second for the urban rehabilitation of the city of Colon. The community of Colon requested that Odebrecht be the company to execute the project in recognition of our experience and our capacity not only to deliver, but also work alongside local communities. This is as important a result to us as financial ones, and shows that our operations are truly sustainable.
Looking to the future, which sectors are most attractive for Odebrecht?
Water, energy, and infrastructure are the most attractive areas for us. More specifically, infrastructure and opportunities related to the supply chain for the oil and gas industry. Currently, we have a few other companies of the Odebrecht Group evaluating on-the-ground opportunities in these areas. In the infrastructure sector, we are set to begin the construction of the Maputo Bus Rapid Transit (BRT) project in the first half of 2016. This project will generate around 1,500 direct jobs and it will contribute to the improvement of Maputo's public transportation system.
MAKING A COMMITMENT
TABLE OF CONTENTS
Review: Economy
Much to Gain
Despite numerous years of considerable economic growth, Mozambique has been unable to retain its wealth and bring more than half of its population out of poverty. Developing one of the world's largest gas reserves and becoming a regional exporter of energy may be the solution.
read articleFocus: Aluminum
Foil Plans
Mozambique is the second-largest producer of aluminum in Africa and the 14th in the world. Since 2000, it has been producing aluminum for export, and in 2015 Midal Cables opened a factory near Mozal; the country's largest aluminum smelter. This could be the start of a Mozambican aluminum value chain.
read articleInterview
Ben James, Managing Director, Baobab Resources
TBY talks to Ben James, Baobab's Managing Director, resident in Mozambique. A geologist by training, Ben has been directly involved with the development of the Company's Tete Project from a greenfields iron ore discovery to an asset on the verge of corner-stoning Mozambique's nascent steel industry.
read articleFocus: Aluminum
Aluminum Legacy
Mozambique is the second-largest producer of aluminum in Africa and the 14th in the world. Since 2000, it has been producing aluminum for export, and in 2015 Midal Cables opened a factory near Mozal; the country's largest aluminum smelter. This could be the start of a Mozambican aluminum value chain.
read articleInterview
Hon. Jorge Olívio Penicela Nhambiu, Minister, Science and Technology, Higher and Technical Vocational Education (MCTESTP)
TBY talks to Hon. Jorge Olívio Penicela Nhambiu, Minister of Science and Technology, Higher and Technical Vocational Education (MCTESTP), on bringing science and technology to rural areas and increasing research in the country.
read articleFocus: E-government + E-bau
Digital Decisions
Between 2015 and 2016, Mozambique fell five positions in the World Bank's Ease of Doing Business Index. The government is investing in the GovNET and e-BAU platforms to facilitate procedures and cut the costs of acquiring business licenses and improving services provided to the public.
read articleReview: Health
Time for a check-up
Mozambique's healthcare budget rose to $561.5 million in 2015, an increase of 1.1% on expenditure in 2014, accounting for 10.2% of the state budget. Total healthcare expenditure in 2014 was $477.5 million. The Ministry for Health oversees the sector and is responsible for setting the budget each year.
read articleInterview
Dr. João M. Carvalho Fumane, Director General , Hospital Central de Maputo (HCM)
TBY talks to Dr. João M. Carvalho Fumane, Director General of Hospital Central de Maputo (HCM), about the range of services on offer and what is being done to further excellence in the health sector
read articleInterview
Hon. Jorge Ferrão, Minister, Education and Human Development
<span style="line-height: 1.6em; background-color: initial;">TBY talks to Hon. Jorge Ferrão, Minister of Education and Human Development, on the goals of the ministry, the role of local languages, and tackling teacher absenteeism.</span>
read articleInterview
Prof. Doctor João Leopoldo da Costa, Rector, Instituto Superior de Ciências e Tecnologia de Moçambique (ISCTEM)
TBY talks to Prof. Doctor João Leopoldo da Costa, Rector of Instituto Superior de Ciências e Tecnologia de Moçambique (ISCTEM), on the perils of the internet on education and the quality of its high school.
read articleReview: Tourism
Mozambeach
With white-sand beaches, scuba diving, and game reserves among its wide range of accommodation, Mozambique is a goldmine for tourism. However, to attract the number of tourists the country is aiming for, and entitled to, it will have to compete with its considerably more popular neighbors.
read articleReview: Legal
Smart Choices
Foreign investments are sources of capital, foreign exchange, and technical know-how for developing countries such as Mozambique. Over the past three decades, Mozambique has been successfully striving to ensure a favorable legal framework for foreign private investment.
read article