Flo-Tek, specialized in the manufacturing of PVC, CPVC and HDPE plastic pipes and fittings, was established in 1998 in Botswana. Later, the company expanded to other countries within the Southern African Development Community. What has the evolution of the company been over its almost 25 years of existence?
When Flo-Tek was founded in 1998, we envisioned the potential that PVC pipes could have in Botswana. Later, we understood that the market was not just in Botswana, and we started expanding from there. At the moment, we are the largest manufacturer in the region, and produce almost 11,000 metric tons per month, and we are aiming to grow to 16,000 metric tons per month by 2025.
We started with a small factory in Botswana, and subsequently, by 2003, we had arrived in Angola. There were no such manufacturers when we came, and simultaneously, Angola started to open up to new industries. At first, we suffered a language barrier. In Africa most countries speak English, and it took some time to adjust. We had Portuguese speaking managers, and bilingual employees. We started with a team of eight people, and today we have grown to 400 employees. In the first five years, we had 100% growth per year and between 2012 to 2017 we were growing 30% per year. From 2017, things were not happening the same way, because Angola
is dependent on the oil economy and the whole country entered a deep recession following the drop in oil and gas prices, so the spending on infrastructure got reduced. Once the government made some adjustments, the industry got back on track. Currently, we got a license of Lubrizol to manufacture C-PVC pipes for 15 countries in Africa and exclusively venturing into O-PVC pipes to which we supply within a broad range of sectors such as mining, construction, among others.
Flo-Tek supplies with the latest technical innovation products within a wide range of products to companies belonging to Mining, Agriculture, Construction, and Building Material sectors. Who are the main clients of Flo-Tek in Angola?
Odebrecht, Somac, or Conduril, used to be some of our major clients until 2017. Now, things have changed, diversification is a
must and our most important clients belong to the agriculture sector. Today, our major client is Novagrolider and other major
farms. Unitel and Angoglobal work with us as well, since we also make fiber-optic cables telecom pipes. With a third player entering the country by the end of the year, the sector is expected to do well. The state of the roads also poses a problem because what we manufacture in Luanda has to be sold all over Angola.
Flo-Tek has carried out research and development projects to reach the highest technical production skills. How does Flo-
Tek stand out from the competition?
We were the first company in Angola to build PET Preforms, HDPE closures, shrink film, Stretch film and paint buckets. We compete with import substitution, so we are always seeking for suitable new products. We are determined to manufacture in Angola for Angola as it is a sizable market. We are major suppliers to Coca- Cola and Refriango and other water companies, and we also work with the oil sector. Meanwhile, opportunities in the food sector are also growing. It will surely take some time for us to recover the investment because it is a new proposition, even though it is a highly competitive sector. Our competitors come from developed countries, so when we create innovative products, we aim to, at least, match their quality.
What are your thoughts regarding the diversification of the Angolan economy, to move away from the oil and gas sector?
We do not see a future for oil beyond 10 years, and Angola should invested in petrochemicals for export and other minerals. With each nation’s targets for 2030, the changes are going to be rapid and deep. Things are slowly starting to move locally, and I can give you some examples of what we are seeing in Angola today.
We have coffee of supreme quality that investors are interested in. There are also players entering the rice and poultry products
businesses. Meanwhile, imports of eggs and chicken have declined drastically due to the increased presence of local enterprises. There is still a long way to go, though, which includes the vital education dimension. Angolan human capital is excellent, and for the next generation, we will have educated people building the economy, and active across the economic spectrum. I would say though that a change of mindset is required, such that people from Luanda turn to the provinces to start building local economies throughout
Angola.
What are your goals for 2025?
We want to grow with Angola, and we believe that the country has now emerged from its recession, and that the outlook is positive. I
fully expect the company to return to double-digit growth. We will see expansion. Indeed, this is the time for investment, especially in technology. We expect to be growing over the coming five years at the CAGR rate of 30%.
Snapshots:
• Workforce in Angola has risen from 8 to 400 employees over 16
years.
• Lubrizol Licenses available in 15 African countries.
• Expected growth rate of 30% over the next 5 years.
• Packing sector growth in Angola and Botswana.
• O-PVC and corrugated pipes line added in last one year.
• Flexibles films and Floxo sector addtions