Paul Makela

TBY talks to Paul Makela, Founder & CEO of BITEC Consulting, about providing business intelligence, working on infrastructure projects, and investing in the DRC.

BITEC Consulting specializes in business intelligence for a wide array of sectors, including mining data and infrastructure. What is the modus operandi of BITEC?

We are an investment promotion company. We put in place different kind of projects by conceptualizing and structuring them, putting together the business intelligence and financial engineering, and providing local support to trigger financial and technical partnerships as well as strategic and sustainable investments in the Democratic Republic of Congo (DRC). There are two approaches: we either work on a project from a partner who wants to establish themselves in the DRC, or we design and prepare a project that we operationalize with partners. Then we put all the implementation mechanisms in place, starting from administrative and political engagement support, engineering, materialization, monitoring and so on. There is no absolute way of implementing engineering or supporting a project, it all depends on the profile of the partner, the investor, and the type of project to be implemented. However, in a challenging country like the DRC, where everything is needed to implement projects, including infrastructure, housing, and finances, it is vital to have someone or an organization that has a solid understanding of the market and knows the rules of the game as well as the players. BITEC is not an individual—it is an institution that has several branches and business lines. For each one of the business lines, we have counterparts on the administrative side. In the Congolese market, the most suitable projects are public-private partnerships (PPP). We are bringing added value, which at the end of the investment chain will improve the living conditions of the population and create jobs. That’s our added value.

How is your portfolio composed?

The majority of our portfolio comprises infrastructural projects. Now, we look forward to starting our industrial projects investment, because we are about to start implementing a cement factory and an energy plant. We have signed a PPP contract with the government and are pleased to have played a role in promoting that package of projects. We came to an agreement with investors and the government because we are the go-between. BITEC is the promoter, the investor brings in capital, and the government puts in place all the licenses and authorizations to bring land and existing assets to the projects.

Where are the energy projects located?

The energy projects we are working on are mostly in the northeast, in Kisangani (Tshopo Province), and they will be hydro plants. There, we look forward to implementing three major projects. The second phase of energy implementation will produce 800MW. Today, a good example is Katanga Province which is the mining capital because of energy. The advantage of Katanga is that it receives power from Inga, which is why the region has been able to develop more rapidly. We are currently concentrating on further development in the northeast and expect it to be the next booming region in the DRC.

Is BITEC planning on venturing into agriculture and developing arable land in the DRC?

We plan to invest in both industrial agriculture and industrial product transformation in special economic zones because the country cannot only focus on mining; we have more than 100 million people who need to eat daily. BITEC will focus on industrial agriculture because it believes the DRC has the capacity to produce several types of crops and even export.

BITEC Consulting is working on a public housing joint venture for a futuristic project, Fatshi City. What made BITEC think that now is the time to bet on digitalizing the DRC?

The biggest real estate development program in the DRC, Fatshi City, is a mix of social housing and enhanced military camps programs, commercial housing projects, and luxury developments. The idea behind the business district is to create a one-stop shop like Manhattan, La Défense in France, or Sandton City in South Africa where anyone can visit and find all the necessary business contacts grouped together.

How can the DRC challenge the perception that it is not a safe place to invest?

The profitability of the Congolese markets cannot be found anywhere. Typical investment funds see a maximum of 2.5% profits compared to 10-20 times in the DRC economy. Despite the high profits, risk mitigation is important. It is all about having the right partners, getting the right contract or administrative support from the states, and relying on local actors who know all the players and can help mitigate the risk. The outlook is bright; once the market and the way of playing the game is understood, I expect the DRC to explode economically.

How many projects is BITEC working on currently?

BITEC has an interest in nine special purpose vehicles (SPV) in total. Four of those are with our partners from Dubai and those are mixed SPVs where the government is involved. With the DRC government itself, we have other three SPVs. We are currently finalizing the structure of our holding, because we have an interest in the mining, industrial, cement, energy, and food processing technology sectors. We are working hard to put in place an integrated payment platform. In addition, we are closely working with the agency working on the census of the DRC to determine how we can improve the population database. In the near future, our goal is to develop a major project, namely a university of innovation, in Kisangani, and this will be in partnership with on of our partner from abroad. This will all be part of our contribution to society. We also plan to create incubators for companies and entrepreneurs where they can take their first steps into business. BITEC will coach them and offer them opportunities.

Is there anything that you would like to add?

Most of our projects are still under development. We have completed the financial planning. We have created the project companies and the SPVs and now projects are in inception phase or in different implementation phases.