CAFCA Invests ZWL$6 billion in Modernisation to St...

CAFCA Invests ZWL$6 billion in Modernisation to Strengthen Market Position

Audrey Galawu

Assistant Editor

CAFCA Limited is making bold moves to solidify its position as Zimbabwe’s leading cable manufacturer through a significant investment in modernisation and strategic partnerships.

The company has allocated ZWL$6 billion for new machinery aimed at enhancing production capacity and reducing reliance on outdated manufacturing processes.

With this investment, CAFCA seeks to improve operational efficiency and meet growing local and regional demand.

The adoption of advanced machinery is expected to increase output while maintaining product quality and reducing production costs. Additionally, modernized processes will allow the company to diversify its product range and enhance competitiveness in both domestic and export markets.

The company is also prioritising strategic partnerships to strengthen supply chain resilience. By collaborating with key suppliers and regional stakeholders, CAFCA aims to secure a steady flow of raw materials, reduce dependency on imports, and mitigate disruptions caused by currency fluctuations.

CAFCA reported a revenue of ZWL$45.6 billion in 2024, marking a 12% increase from the previous year’s ZWL$40.7 billion.

However, net profit saw a slight decline of 8%, settling at ZWL$5.2 billion due to rising production costs and currency fluctuations. Despite these challenges, the company maintained a strong balance sheet, with total assets increasing to ZWL$78.3 billion.

Exports played a significant role in revenue generation, with regional sales growing by 18% as CAFCA expanded its market presence in Zambia and Mozambique.

However, local sales were slightly affected by reduced consumer spending and increased competition from imported cables.

“The gaps in power supply created a major dent in capacity utilisation during the year. Containment measures have been put in place albeit coming at a cost, to keep the product available to our customers.

“On time delivery was therefore affected, averaging 83% in the last quarter of the financial year against a target of 100%,” CAFCA CEO, Vimbayi Nyakudya said.

To cushion itself against exchange rate volatility, CAFCA is exploring alternative financing options. This includes engaging with financial institutions and investors to secure favourable funding arrangements that support long-term growth.