Success in the modern aviation sector requires world-class facilities and sophisticated infrastructure. Equatorial Guinea has significantly upgraded its aviation capacity over the last decade, providing a strong incentive to enter this growing market. Grupo Molsa is a stakeholder in the nation’s aviation sector through subsidiary airline Punto Azul.
Malabo’s potential as a regional hub and the airport’s upcoming expansion and modernization represent growth opportunities for airlines such as Punto Azul and other aviation-related companies. The central location of Malabo allows passengers and cargo to reach most of the commercial capitals of West and Central Africa within two hours, and usually in one hour or less. The capital’s airport provides direct flights to international hubs in Frankfurt, Paris and Addis Ababa, with Punto Azul offering services to Accra, Douala, Yaoundé and domestic flights within Equatorial Guinea.
Outside of Malabo, the country has modern airports on the islands of Corisco and Annobon, and international airports in the cities of Bata and Mengomeyen. Increasing demand for domestic and regional air travel, as well as the logistics requirements of the petroleum industry, keeps this sector buoyant.
The media and entertainment industry is shifting and adapting – consumers demand a dynamic, multi-faceted experience, wherever they are in the world. In Africa, subscription television has become a competitive field, with huge growth in the number of service providers and the quality of programming over the last decade. Grupo Molsa launched its Canal Sol digital TV service in Equatorial Guinea in 2014, aiming to enhance viewers’ choice of programming and introduce new services to the market.
Television entertainment is a fast growing industry, with year-on-year advertising revenue growth rates of more than 10 percent in some African markets. However, subscription television penetration in the region is relatively low compared with the rest of the world. Equatorial Guinea’s market has been underserved and under-represented in choice and availability of pay TV services. With the introduction of Canal Sol, consumers now have a wider choice of service providers, different channels to watch, and they benefit from a lower price.
Entertainment is a strategic business area for Grupo Molsa. By adopting new digital technologies and offering consumers an increasing range of services and experiences, we forecast high growth for Canal Sol and associated businesses in this segment.
More travellers are visiting Sub-Saharan Africa than ever before, and travel sector growth is among the highest in the world. While Equatorial Guinea’s tourism industry is nascent, the country does have a thriving business travel segment, and faces high demand for hospitality services. Grupo Molsa is entering the hotels and hospitality sector this year, with the opening of a new hotel in the pipeline.
Equatorial Guinea holds the keys to success in the hotel industry: a fascinating landscape, great natural beauty, multiple airline connections, a safe and stable environment and a well established culture of catering to business travelers. Grupo Molsa provides the ability to build a long-term plan for a hotel business, source local staff and market the hotel locally, and acts as the local partner for incoming investors in the hospitality sector.
Growth through consumer-facing industries is a priority for Grupo Molsa. Travelers visiting Equatorial Guinea welcome an increase in quality hotel choices. The group aims to expand the country’s hospitality sector, leveraging the natural advantages of Equatorial Guinea, and looks forward to launching its first hotel venture in 2016.
ICT and Telecoms
Africa is the world’s fastest-growing region for telecommunications and is set to remain on this trajectory. A key driver is the uptake of data services that use mobile Internet and smartphones – particularly mobile payment. Grupo Molsa is entering the technology and telecoms sector with the formation of Waka Telecom.
Despite the installation of fiber-optic high-speed Internet and telecoms infrastructure across Equatorial Guinea, the market for communications and technology is still underdeveloped. The rise of wireless networks and smartphones in Africa has revolutionized the way people connect and how they do business, and the growth shows little sign of slowing. In Equatorial Guinea, Grupo Molsa aims to introduce the latest technology in various segments of the telecoms sector (such as mobile devices, high-speed networks and mobile finance/billing), placing emphasis on improving the quality of life of Equatoguineans through new and accessible technologies.
It is our belief that telecoms technology is a tool that empowers people, and that its commercial potential in Equatorial Guinea and the Central Africa region remains very large. This sector will be key to the group’s expansion strategy over the coming two years.
Agriculture has traditionally been the foundation of Equatorial Guinea’s economy, employing the majority of citizens and offering numerous investment opportunities. Equatorial Guinea’s government is prioritizing this vital part of the national economy and Grupo Molsa has made a long-term investment in its potential.
The climate of Equatorial Guinea lends itself to cultivation of a wide range of sub-tropical and tropical crops and livestock. Policy makers are keen to encourage agri-business and sustainable forestry activities with the aim of extending the agricultural value chain in Equatorial Guinea. From supply of seeds and equipment to packaging and distribution, opportunities abound for the creation of businesses that can contribute to meeting domestic demand, create jobs and enhance the value of agricultural activities.
Investments are being made to meet growing local demand and to cultivate and process products for regional and international exports using existing export frameworks. Equatorial Guinea’s agriculture sector is large by employment, but small by share of national GDP, leaving room for large productivity gains and innovation in the private sector. Grupo Molsa is working with international partners to create new opportunities in this strategic economic area.
Grupo Molsa is a stakeholder in many of Equatorial Guinea’s prime real estate developments. This expanding sector has attracted huge domestic and foreign investment over the past decade, with a lot of capital dedicated to office construction in the business district of Malabo II, residences and facilities in the Malabo area and new buildings in cities all over the country.
A huge influx of workers due to the rapid growth of the economy kept the real estate market growing steadily in Equatorial Guinea. Across the region and the continent, young populations and urban expansion will necessitate the construction of more homes and commercial buildings. In Equatorial Guinea, population growth is at 2.8 percent annually, ensuring sustained high demand for property. Natural resources industries have provided a significant boost to the real estate market in the country. Industrialization is now gathering pace, giving the real estate sector further momentum.
Grupo Molsa and its partners in the real estate sector are proud to support the building of Equatorial Guinea’s residences, facilities and iconic new buildings, and see continued opportunities to keep investing in this sector.
Africa has the world’s lowest rate of vehicle usage in the world, but the needs of a rising middle class and economic growth throughout the continent will have a positive impact on the automotive sector. The rise in vehicle ownership necessitates specialized maintenance facilities. Equatorial Guinea is following this upward trend in vehicle ownership, and Grupo Molsa has entered the sector through investments in vehicle repair and maintenance workshops in the country.
Equatorial Guinea’s fleet of private and commercial vehicles is growing along with diverse economic sectors and consumer spending power in Equatorial Guinea. But the country is currently underserved for specialized vehicle maintenance services for the multitude of marques now on the road. Grupo Molsa has established a car repair facility in Malabo and is now looking to international partners to promote more activity in this sector, following the model of successful vehicle servicing businesses elsewhere in the world.