Commercial transportation solutions for Mozambique

October 15, 2024

Jorge Amaral Brites, CEO of Entreposto, talks to The Energy Year about the company's thriving vehicle import business in Mozambique and the pursuit of growth in Africa through targeted investments. Entreposto is a diversified conglomerate that operates businesses in the automotive, logistics, car rental, agriculture and industrial machinery segments.

How is Entreposto structured in Mozambique and what are your main activities?
Entreposto’s core business lies in the automotive sector, which makes up around 80% of our revenues. We import cars from major brands such as Isuzu, Volvo and Proton, which is a Malaysian manufacturer with a range of high-quality light vehicles and equipment. In the commercial vehicle segment, we also distribute MAN trucks, Isuzu trucks and a Chinese truck brand, Foton, that we have started to introduce across our five African operations.
Our Group has historically pursued diversification. Through our machinery arm, we represent Case IH, a US agricultural and industrial machinery manufacturer. In 2010 we acquired Dataserv, a leading IT company and currently the largest HP distributor in the country, and we also have a digital archiving business.
Then, through a partnership with Sotecnisol in Portugal, we have expanded into construction and air conditioning equipment. In 2022 we started our rent-a-car operation with Sixt, providing new mobility solutions to the market. In May 2024, we will launch Morbi Parts, which is going to focus on getting OEM [original equipment manufacturer] and aftermarket parts into the country for mining companies.

 

What are the main difficulties companies need to overcome when doing business in Mozambique?
The Mozambican economy has been improving since 2010, but it remains relatively small and underdeveloped. Infrastructure is a major hurdle and poor road conditions handicap logistics. While the government is securing funds for renovations, particularly for the crucial Maputo-Pemba corridor, building infrastructure is a long-term process.
Limited rail and port capacity further restricts efficient domestic transportation. These factors make large-scale agricultural investment particularly challenging, and it is difficult for domestic companies to compete with established players in South Africa who produce on a larger scale and have lower costs.
High interest rates of around 20% make debt financing costly. This was a key factor behind our acquisition by Grupo JAP in 2020. Following a restructuring, Entreposto has eliminated non-essential debt and we now only carry the credit lines needed for imports. The Group is prioritising conservative investments and focusing on consolidating existing operations.

What growth options is Entreposto considering for the future?
We see a bright future for our companies in Mozambique. We’re expanding our industrial machinery offerings and aiming to become a one-stop shop for transportation solutions in sectors such as oil and gas and mining, and our new service and parts division will offer value through competitive pricing.
We are positioning ourselves for growth across Africa, and our experience in Angola, where we’ve been established for nearly 15 years, is proving invaluable. Success in Africa hinges on adapting to specific client needs. In Angola, we built our reputation for reliability by going above and beyond to solve our clients’ difficulties, mainly in mining operations. When you are a client, your problem is my problem. This mentality is at the heart of our approach.

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• Mozambique