Escom, one of the largest private investors in Angola, is a conglomerate formed in 1993 by Portugal’s Espirito Santo Group and local private investor Helder Bataglia. Escom started as a trading company and later diversified its investments to provide continuity to its parent company’s projects in Africa, especially those in Angola. “Right now, Angola is not only our main market, but also the most important part of our genetic code,” says Bataglia. “In fact our history is deeply intermingled with Angola and accompanies its development.
“We came here in the early 1990s, but the resumption of the war greatly affected our momentum and we had to adapt to circumstances. In 1995, Escom began investing in sectors such as fishing, mining and aviation, demonstrating that even during a war, we could create opportunities. When peace finally came we were already here to contribute to the development of Angola, investing in new areas like real estate, infrastructures, oil and gas, and energy.”
“IN 2003, WE DECIDED TO DO A THOROUGH RESTRUCTURING, SPLITTING ESCOM INTO FIVE MAJOR AREAS OF INVESTMENT: MINING, REAL ESTATE, INFRASTRUCTURE, ENERGY AND OIL AND GAS.”
HELDER BATAGLIA,
Founder and Chairman of Escom |
Escom later opted out of aviation and fisheries to focus on adding value to Angola’s most promising natural resources. “In 2003, a year after we achieved peace, we decided to do a thorough restructuring, splitting Escom into five major areas of investment: mining, real estate, infrastructure, energy, and oil and gas,” says Bataglia.
In terms of mining, Escom has invested heavily in the diamond industry over the past 10 years. From 2001-09, the company dedicated some $430 million toward diamond mining, and an additional $750 million has been budgeted for use in that pursuit by the end of 2014. These significant figures represent Escom’s faith in the future of the sector and in the Angolan economy, in general.
“Today, in terms of exploration, we are the company that invests most in Africa,” explains Bataglia. “Now we will enter into the operational phase of new mines, which represents the culmination of a period of several years of exploration and will significantly strengthen the presence of Escom and of Angola, which will soon be one of the top three worldwide diamond producers.”
Supplying this optimism is the
Luo mine in which Escom is a partner, and which will produce over 6 million tons of ore per year by 2013, making it one of the 10 largest diamond mines in the world.
Another strategic area in which Escom is taking an active role is hydropower production. Indeed, it will be the energy produced at the Luapasso station in Lunda Norte that will supply mining areas in eastern Angola. Currently under construction, this project is being built in partnership with the National Energy Company (ENE) and once the first phase is completed, the power will be channeled to the mining projects. Urban areas will benefit from further phases. Two other hydroelectric dams are under construction in Samuela and Camanenga, also in Lunda Norte Province.
Escom’s investment in hydropower and mining is accompanied by a growing interest in oil. Not long ago, the company formed a partnership with the Angolan company Gema, thus acquiring a 2.5% stake in Block 18, operated by Petrobras, and located next to the fields where Total and BP currently operate.
The success of its Angolan operations allowed Escom to invest in infrastructure and energy in neighboring countries such as Congo Brazzaville, South Africa, Mozambique and Gabon, with the objective of becoming a regional player at the level of SADC and Central Africa.
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