A partner for building Angola’s energy infrastructure

Angola

João Teiga, CEO of OREYAFRICA, talks to The Energy Year about the company’s strategic projects and initiatives in the energy sector and the main challenges Angola faces in its pursuit to become a regional logistics hub. OREYAFRICA is a transport and logistics company with comprehensive services in Angola and Mozambique.

What are strategic projects and initiatives your company is prioritising in the near future, particularly within the energy sector?
Our continued collaboration with energy companies involved in expanding and revitalising Angola’s energy infrastructure has been a remarkable success story spanning several years. Our involvement began with the Laúca dam project and has since extended to encompass substations and various network construction initiatives. This enduring partnership underscores our expertise and effectiveness in supporting critical infrastructure projects that contribute to Angola’s development.
In the coming years, our focus will be on projects such as Caculo Cabaça, a dam constructed on the Kwanza River with a production capacity similar to Laúca. This venture represents a key objective for us moving forward. Additionally, we remain committed to supporting our existing clients by expanding our involvement in solar power projects.
Ensuring the satisfaction of our current customers while actively pursuing new opportunities in the renewable energy sector is central to our strategy. It’s widely known that several of our clients have secured contracts for numerous solar power projects across the country, particularly in the central and southern regions. We fully intend to collaborate with them on these initiatives to further solidify our presence in the renewable energy market.
Additionally, we are actively involved in expanding the country’s energy distribution network, collaborating with various suppliers and customers, including those associated with MINEA [Ministry of Energy and Water].

What are the key challenges Angola faces in its pursuit to become a regional logistics hub?
The aspiration for Angola to become a regional logistics hub is faced with significant challenges, particularly with respect to transnational logistics infrastructure. While the Angolan government aims to establish itself as a regional hub, barriers from neighbouring nations pose a significant obstacle. Currently, there are infrastructural deficiencies, especially on the borders with the DRC and Zambia.
Despite Zambia sharing a lengthy border with Angola, there is currently no road access between the two countries. Similarly, the DRC, which has two or three main access points, suffers from severe infrastructure deterioration. While infrastructure on the Angolan side is well maintained, challenges arise after crossing the border, particularly along the Luau border, serving the route to Kolwezi and Lubumbashi.
Beyond infrastructural challenges, societal issues further complicate regional integration. Angolan operators face extortion and corruption risks when operating in neighbouring countries, particularly in the DRC. These cultural and organisational challenges present significant hurdles for cross-border trade and logistics operations.
Addressing these challenges will require concerted efforts from both Angola and its neighbours, and they must be addressed to facilitate seamless cross-border trade and logistics operations.

What is the projected growth for 2024 for OREYAFRICA?
Our budget for this year anticipates 50% growth in EBITDA. I can confirm our commitment to sustained growth across all our business areas. This includes expansion in exceptional transport and supply chain logistics, with a particular emphasis on transport and distribution, which are expected to see significant growth.
We are investing in the renewal of our fleet and anticipate we will significantly increase our business in container depots next year. Our projections for the upcoming year are optimistic, and we anticipate surpassing the achievements of the previous year.
One notable aspect of our growth strategy is the significant increase in employment opportunities we are creating. While by Western standards, our employment figures may not seem substantial, they represent a significant portion of the new jobs created in the country.
We take pride in our Western philosophy of business, which emphasises not only profitability but also our impact on the community. Our employees value the stability of long-term employment, the timely payment of salaries, the provision of company uniforms and access to company meals. Unlike many others in the industry, our truck drivers are employees rather than commission-based contractors, which provides them with greater job security.
As we look to the future, there are no plans for changes in leadership or strategy. We remain steadfast in our commitment to growth and community engagement and believe the values that have brought us success thus far will continue to drive us forward.

Read our latest insights on:

• Angola
• Mozambique
• Zambia