Edney Vieira, CEO & Chairman, Cimentos de Moçambique (CM)
• Interview
How would you describe the contribution of CM to the development of Mozambique?
In 2019, CM celebrated 95 years of operations. For a good part of its almost 100-year history, stateowned CM was the only company in the field, meaning CM has literally built the entire country from the ground up. Since opening up to private investors in 1994, the market has become increasingly competitive, but CM still holds a great market share and the leading role within the industry. Our contribution to developing Mozambique is multifaceted: not only have we built the country’s cities and infrastructure, but by investing in plants and facilities and pushing an expansion plan that has brought us to operating five facilities, we have set the stage for Mozambique’s industrialization. Our most important contribution, however, is the development of local content and the confidence we have instilled in our employees. We have helped them to grow and mature. Finally, a somewhat surprising contribution that we are having as a cement industry player is on the front of sustainability. In 2015, we started co-processing crude oil residuals from Petromoc in our kiln, and in 2017, we started doing the same with oil and solid residuals (SPL) from Mozal. Thus far, we have processed 4,000 tons of oil and 2,000 tons of SPL. In 2019, we implemented a program whereby we are processing used tires. As of May 2020, we have processed 971 tons of pneumatics.
How optimistic are you about Mozambique’s economic recovery?
Unfortunately, Mozambique is often dominated by a negative narrative of being “the country where the future never arrives.” We began 2020 with huge hopes, with the development of LNG projects on the horizon and the metical showing no sign of devaluation. COVID-19 took us all by surprise, and we are once again waiting for a brighter future. That said, I am positive about Mozambique’s future. What is special about Mozambique is low costs. In a USD15-billion economy, we do not need a great input of investments to put the economy back in motion. Given the kind of investments in the pipeline, it’s truly possible that Mozambique can recover faster than other economies.
How can CM capitalize on Mozambique’s bright future?
The LNG industry will be the driving engine for growth across all sectors. Construction of largescale infrastructure will be, by nature, the pillar of economic growth. On one side, large infrastructure is required by gas projects, and on the other, large infrastructure will be the preferred form of re-investing gas revenues because it is the most effective solution to unemployment. The LNG industry is by nature high-tech, so Mozambique’s local content cannot be involved in every step; however, the government is trying to maximize the utilization of local content where possible. Cement production is definitely one such area. As a leading player in the cement industry, we want to ensure that at least 85-90% of the cement consumption for upcoming projects comes from local producers. This will allow us to create jobs, keep the money flowing internally, and push the government’s plan for industrialization. It is time for us to increase the level of internal production and give value to local products in order to ensure a better future for the coming generations. We have to create this virtuous cycle where the money generated in Mozambique will be reinvested for the benefit of the country.
What are your main objectives for 2020?
Our main objective is to resist the immediate impact of COVID-19 and protect our workers. Financially, the impact of COVID-19 is undeniable. We are currently looking at a 15% reduction in sales for 1Q2020, but we have positive expectations for 2Q2020. Reaching our sales target will be the key in 2020. We are keeping our strength in cashflow, working with existing capital to fight the crisis and making sure the company remains in a healthy state to capture upcoming opportunities. ✖
What attracted you to Mozambique in the first place?
Doing business in Mozambique comes with a great range of opportunities and challenges. I am a strong believer of a longterm vision, which we religiously followed as a group, and giving back to communities. One’s business grows hand-in-hand with the development of the country.
How do you give back to the communities in Mozambique?
We have always contributed to the welfare and wellbeing of the community. It was in 2015 when we officially created the Rizwan Adatia Foundation, which is currently operating in Mozambique, DR Congo, and India. It inspires other people and companies to come forward and play an active role in the development of the countries in which they operate. Within a period of five years, we have impacted more than 800,000 lives in Asia and Africa. We were honored with 35 awards nationally and internationally, including visits by public and private dignitaries to our events. The foundation promotes innovative and impactful development solutions in Asia and Africa, and strives to help the poor and marginalized communities through different interventions in the areas of health, education, income generation, and livelihoods.