- Mozambique | 23 September 2020
Can you provide some background on the creation of Ascending?
In 2010, I was invited to join Capital Outsourcing Group, which was part of Adcorp, a JNB listed company ranked among the top 10 staffing companies globally. Initially serving as the country manager for Adcorp in Angola, I later became the regional executive manager, overseeing operations in Angola, Mozambique, Tanzania, Kenya, and Uganda. However, in 2017, due to a decline in the oil and gas industry and new staffing legislation in South Africa, Adcorp’s stock price plummeted by approximately 50%. This prompted the company to change its executive structure and shift from an investment strategy to a containment strategy, divesting its non-core assets. Recognizing this as an opportunity, my business partner and I initiated a management buyout of the Angolan and Mozambican assets, leading to the creation of Ascending. Since then, we have experienced steady growth within our client base and established a solid foundation for sustainable growth.
How was the transition from being part of a large corporation to starting your own company?
Transitioning from a large corporation to starting our own company had its advantages. Acquiring assets from a company with over five decades of accumulated experience operating in the region, a recognized track record, and an established client base provided us with a smooth transition. Clients could continue to rely on the same structure and workforce, ensuring continuity. As a smaller and more agile business, we were able to bring in our flexibility, getting closer to the companies in the countries where we operated.
Could you provide an overview of the services Ascending offers to the mining and oil & gas industries?
Ascending is an HR service provider specializing in workforce management solutions. We assist clients with their HR needs and provide them with local workforces to support their business development. In Angola, our operations primarily focus on the oil and gas industry. In Mozambique, while the mining industry was our initial core focus, we expanded into servicing the oil and gas industry when it experienced significant growth in 2011. Recognizing the extreme skills shortage in Mozambique, we started offering training programs to ensure we could supply the right skilled workforce for our clients. Currently, we manage two training centers in Pemba and Maputo, equipped to provide technical, mechanical, and soft skills training. Our training centers are ISO certified and adhere to ECITB, MQA, and MERSETA standards. With our investments over the past two years, we are well-prepared for the upcoming gas boom in Mozambique.
How do you think Mozambique will cope with the increasing demand for skilled workers?
I have doubts about Mozambique’s ability to meet the demands for skilled workers. Local content advocates and policy writers face significant challenges during negotiations with operators regarding the definition of local content. As a service provider, we are often kept apart from the reality of these negotiations, making it difficult for us to decide on investment strategies. The uncertainty surrounding local content makes it challenging for the service industry to plan effectively.
Do you believe that a gradual increase in local content year by year could benefit both the industry and the government?
Having witnessed the implementation of various local content programs across Africa, I believe that a clearly defined working model is essential. It is crucial to establish a model that can be followed consistently, preventing incorrect interpretations of what should and should not be done.
Mozambique currently has the same ministry for mining and energy. Do you think these sectors will be separated in the future?
Separation of the mineral sector and the energy sector seems inevitable. The oil and gas industry has garnered significant attention, often overshadowing the mining industry. At present, it is challenging for any sector, whether public or private, to fully comprehend the magnitude of what lies ahead for Mozambique. Once the development gains momentum, everyone will struggle to keep up. This may lead the government to realize the necessity of establishing a separate body to oversee the oil and gas industry.
Considering the anticipated scale of industrial development, collaboration among industries will be crucial. Does Ascending work hand in hand with other companies?
Collaboration is essential for smaller national companies to avoid losing business to larger international companies. By understanding the expectations and bringing our skills together, we can provide the necessary offerings to the market. Rather than competing, it is more beneficial to team up and work toward a shared goal. While we have been approached by companies seeking collaboration, we prioritize identifying the intentions of potential collaborators. We steer clear of parasitic or unclear partnerships. However, if a collaborator can complement our service offerings and bring value to the table, we are more than willing to engage in a mutually beneficial collaboration.
What are Ascending’s main objectives in Angola and Mozambique moving forward?
In Angola, Ascending has reached a point of maturity with a stable revenue stream and structure. Our objective is to achieve year-on-year business growth over the next five years, establishing a stronger presence across the country and becoming a national powerhouse.
In Mozambique, our goal is to solidify Ascending as the preferred training partner for heavy-duty sectors such as oil and gas, mining, and industry. We aim to secure ongoing long-term contracts and training programs with clients, enabling us to build stronger relationships and gain insights into their future requirements and demands.
How has the coronavirus pandemic impacted Ascending’s operations in Africa?
As a business that has operated in challenging environments since 2013, we have learned to adapt and manage through uncertain times. The coronavirus pandemic has raised awareness about health issues, leading us to adjust how we deliver our services and protect our teams. However, in terms of business, the pandemic is merely an extension of the waiting game we have become accustomed to. We remain patient and resilient, leveraging our expertise to navigate through these periods of uncertainty.
Is there a final message you would like to share with the readers of Global Business Reports?
Ascending is more than a simple labor provider that churns out operators overnight. We understand both the needs of our clients and the workforce, providing value-added services and fostering responsible attitudes in the environments we operate in. For companies seeking stable, long-term partner relationships, Ascending is a service provider they can rely on. We are the most certified and qualified labor service provider in the jurisdictions where we operate, capable of fulfilling a range of HR needs. Our commitment extends beyond providing labor forces; our motto is to improve lives and organizations.