An Angolan company of international standards

Angola

Francisco Lima Aires, general director of Sonangalp, talks to The Energy Year about how the company’s presence in Angola impacts the country’s energy landscape and economic development and what measures it has implemented to become customer-centred. Sonangalp is an energy company that markets oil products.

How does Sonangalp’s presence in Angola impact the country’s energy landscape, and what effects does it have on the nation’s economic development?
Sonangalp, a joint venture between Galp and Sonangol, is celebrating its 30th anniversary in the market. The company operates 67 retail stations in the B2C [business-to-consumer] segment across Angola, engaging in direct B2B [business-to-business] transactions and maintaining a strong presence in the B2B market.
Additionally, we oversee the lubricants business for Galp in Angola, with a focus on exceptional quality and brand strength. Lubricants represent a key sector for strategic development.
Over the past three years, we have strengthened our distribution capacity by ensuring that we have available stock in the north, centre and south of Angola. Our commitment to compliance and ethical practices is evident through our IT-based control processes. We successfully restructured the company to implement a customer-centric approach, which is crucial in Angola, where service satisfaction levels are generally not met.
Our emphasis on human development is reflected in workforce training projects and our forward-thinking organisational mindset. We believe in deconstructing and rebuilding for growth.

What measures have you implemented to become customer-centred?
We are building a new customer relations centre, which constitutes a critical project for major clients in both the B2C and B2B sectors. This initiative includes customer support and customer service and will expand our presence into uncharted territories.
To ensure efficiency, we’re promoting the implementation of internal and customer interface processes. Simultaneously, we’re implementing robotic process automation to streamline routine tasks, allowing our workforce to dedicate their efforts to innovative projects.
Last, but definitely not least, ensuring the safety and wellbeing of customers is paramount for our business. Sonangalp believes safety really matters, and one of our critical objectives is to promote a safety culture in our company. This is a culture in which people are encouraged to speak up when something is not quite right, where it is safe to ask questions, and positive behaviours are recognised and acknowledged.

How competitive and challenging is the market in Angola?
The Angolan market, with its four major operators, presents entry challenges due to low fuel prices and high subsidies. These complexities significantly impact the operations and growth of distribution companies. The market’s lack of profitability and providers highlight the need for improvements within the sector to ensure compliance and facilitate entry for new operators.
Importation difficulties, low margins and high subsidies pose challenges that require careful consideration by the government. Despite slow progress, steps are being taken by the government. Despite its challenges, Angola offers opportunities, and at Sonangalp, we have an ambitious plan for significant growth.

What are the key challenges for network expansion for Sonangalp?
Our business faces challenges due to the uncertainty surrounding price corrections. In Angola the scarcity of retail stations is attributed to various difficulties. The primary challenge lies in adhering to international standards, a commitment we already uphold at Sonangalp stations, ensuring safety, quality and service.
The Angolan market subsidises fuel by over USD 2 billion annually, creating a complex context. Despite these challenges, we remain optimistic.
At Sonangalp, we have an ambitious plan for significant growth. This situation must come to an end, and the funds should be allocated toward social policies. However, this process requires careful handling to avoid economic imbalances. Additionally, the market should attract foreign investors to foster growth and stability.

What role does the B2B market play for Sonangalp?
We operate as a significant player in the B2B market, with a strong focus on client-centricity and fast delivery. Our pricing closely aligns with that of other companies due to our narrow profit margins; there are no conditions for varying prices.
Angola presents intriguing B2B opportunities, particularly in sectors such as civil construction, infrastructure, public works and industry. While it is not yet a fully industrialised country, Angola is steadily growing.
Our portfolio spans both B2B and B2C, and our mission is to ensure our clients’ success. We prioritise supporting them in significant projects and aligning with the government’s strategy to enhance internal industrial production.

What role do lubricants play in Sonangalp’s growth?
Our lubricants business plays a critical role. Galp’s extensive profile enables us to create value and strategically differentiate ourselves. With over 400 approved products and a stockpile of 1,500 tonnes in Angola, our lubricants business establishes us as a reliable supplier across various industries, including mining and civil construction. While some suppliers offer a limited product range with no stock, we stand in contrast with abundant supply.

What are the most important corporate social responsibility activities that Sonangalp has in Angola?
Human rights, ethics, compliance and social responsibility are integral to Sonangalp’s values. We focus on strategic initiatives such as Every Step Counts. The Every Step Counts initiative was born in the form of an internal challenge to Sonangalp employees to combine physical exercise with the social purpose of supporting those who need it most. In this initiative, every kilometre travelled on foot, running or cycling equated to a donated basket of goods supporting orphan institutions and addressing education challenges.

What will Sonangalp look like in the future?
We aim to significantly increase tonnage sales over the next five years. Our growth plan involves developing the retail network, expanding our presence in B2B and enhancing our position in that area.
Our vision is to become a company of European dimensions. We aspire to be present throughout the territory, recognised for our client knowledge, and to offer a broad product range. Additionally, we aim to be a leading provider of innovative solutions. Our goal is not merely to be the largest player; rather, we strive to be the best. We will achieve this by closely aligning ourselves with our clients on significant projects.
Moreover, we firmly believe that it all starts with putting people first. Sonangalp aims to be known as a great company that attracts, develops, excites and retains exceptional people in Angola.

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