A multiservice group for Angola’s development

Angola

Sérgio Paulo dos Santos Silva, general manager of Grupo CH, talks to The Energy Year about the evolution of the company’s fuel distribution division and the key factors driving the Angolan fuel distribution sector. Grupo CH specialises in civil construction, road fuel transport and maritime fuel bunkering.

How is the fuel distribution division of Grupo CH evolving?
We’ve recovered some previously out-of-commission vehicles, which has boosted our operational capacity and improved our ability to serve our clients. Additionally, our collaboration with Sonangol has grown stronger. Moving forward, we’re committed to continuous improvement and innovation and are exploring ways to expand our business and serve our clients even better.
Despite the challenges of the crisis, our organisation is on a positive trajectory, and we’re optimistic about the future as we build on our successes and establish strategic partnerships.
Our primary objectives for 2024 revolve around asset recovery and increasing operational capacity. Our focus is on reviving additional assets that were previously inactive and enhancing our workload.

What are the key factors driving the Angolan fuel distribution sector?
The growth prospects for the fuel distribution sector appear promising. As of now, renewable energies haven’t made significant inroads into our region, and we continue to rely heavily on traditional fuels. This dependency creates a favourable outlook for the sector to expand and flourish.
Liberalisation in the downstream sector of the fuel distribution industry holds significant importance. Previously the sector operated in a highly centralised manner, but now we are witnessing the entry of new players such as TotalEnergies. It seems that Sonangol is embracing this opening to competition. We have taken advantage of this liberalisation by expanding our presence.
At present we have two filling stations, one here in Luanda and a recently opened station in the province of Benguela. Fortunately, the new station in Benguela has been performing very well and has received positive feedback from the local population.
The decision to open in Benguela was based on careful survey work, which revealed a suitable location and a genuine demand for fuel services in that area. We further anticipate that the future Lobito refinery will have a positive impact on our company.
We believe that similar prospects may arise in other locations, prompting us to consider future expansions. While the demand for fuel pumps in Luanda may no longer be as high, we remain open to exploring opportunities in other regions.
In short, the liberalisation of the downstream sector has opened doors for new ventures and increased competition, driving us to expand strategically in response to market demands and potential growth prospects.

What is the potential for Grupo CH to venture into new countries to participate in construction projects?
We are in negotiations for ventures outside the country, such as one in the Democratic Republic of the Congo (DRC). Overall, while there have been changes in partnerships, we are actively moving forward with our construction projects and seeking the ideal collaborators to ensure the success of these endeavours.
The projects we are involved in for the DRC primarily focus on road construction. Currently we are in the process of analysing a project in collaboration with a foreign partner. As we progress and solidify the details, we will be able to provide more comprehensive information about the project’s scope and objectives.
In addition to this project, we also have ongoing construction projects in Angola. We are committed to working steadily on these projects here as well. As we continue to make progress and develop these initiatives, we strive to contribute positively to the growth and development of both Angola and the DRC.

What is Grupo CH’s strategy for growing its security division?
The security sector holds significant importance for the CH Group, and we have been experiencing substantial growth in this area. Initially we established our security division to assess the sector’s potential and to gauge its viability for the company.
As we progressed, it became evident that there were further opportunities to explore, which prompted us to re-evaluate our projects. To enhance our capabilities and ensure effective management, we hired a dedicated manager with expertise in the security field. Currently we are in the process of restructuring and exploring new avenues to expand and elevate our presence in the security sector.
Our main strategy for reaching potential customers in other sectors, such as banks and oil companies, revolves around creating a dynamic internal environment that fosters expertise and understanding of the specific needs of clients at this scale. Now we are actively engaged in training our employees and enhancing our operational structure to effectively meet the requirements of these potential customers.
By equipping our team with the right skills and knowledge, we can confidently tailor our services and solutions to the unique demands of the banking and oil sectors. Ultimately the success of our strategy lies in our ability to showcase our expertise and capabilities.
We must demonstrate that we are well prepared to cater to the needs of clients in these sectors. Our goal is to establish a strong presence and reputation to attract and secure customers from various industries, which will thereby expand our reach and impact in the security sector.

What is Grupo CH’s long-term strategic objective?
Our ultimate vision is to become a reputable and reliable partner and be recognised for our contributions to the country’s development. While the future may be uncertain, we remain committed to our vision and strive to make significant progress in the next five years to consolidate our position in the industry and contribute to the growth and success of the group.
Our primary strength and added value at Grupo CH lies in our roots as a family-owned and operated company. With no external shareholders or outside influences, we have fostered a unique culture where the entire organisation works cohesively as one big family.
This mindset is instilled in every team member. We are deeply and collectively committed to the growth and success of the group. Throughout the past 25 years, this family-oriented approach has been a significant pillar of our success.

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