CAFCA Plans Expansion To Strengthen Export Presence
Zimbabwe’s sole cable manufacturer, CAFCA, is exploring opportunities to broaden its export footprint by establishing two additional consignment stock arrangements. Currently, CAFCA primarily operates in Southern and Central Africa, with successful export ventures reaching markets as distant as Uganda and Russia. Earlier this year, CAFCA expressed optimism about the Rwandan market, considering it a reliable customer, and initiated consignment stock arrangements in Tanzania.
Anticipating business from the Democratic Republic of Congo (DRC) in the first quarter of 2023, CAFCA has secured sufficient capital to accommodate the anticipated surge in production and bolster its thriving export business. Additionally, the company plans to expand its solar cable offerings, with a scheduled launch this month, aiming to consolidate market share in the face of growing competition and escalating demand.
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Caroline Kangara, CAFCA’s company secretary, emphasized the strategic move to navigate the competitive landscape. In its quarterly trading update up to June 2023, the company reported an increase in export volumes to 106 tonnes, surpassing the 91 tonnes recorded in the same quarter last year. Challenges surfaced in Malawi, where difficulties in obtaining foreign currency hindered stock replacement for the Lilongwe market, resulting in sluggish volume uptake.
Despite these challenges, sales in Mozambique, Rwanda, and Tanzania aligned with forecasted numbers. However, local sales volumes experienced a six percent decline compared to the same period last year, primarily driven by a notable drop in the local utilities sector. The market witnessed a general decline toward the end of the quarter, particularly among traditional clients grappling with liquidity constraints stemming from a tight monetary policy.
