Zimbabwe: Cafca Exports Defy Lockdown

13 August 2020

Listed cables manufacturer CAFCA Limited managed to boost exports over the nine months to June 30, 2020, to 207 tonnes notwithstanding a decline in production volumes during the last three months due to the Covid-19 pandemic.

CAFCA's primary market is Southern and Central Africa, although it has an export footprint that reaches into the European Union (EU), including Russia.

On a prior comparable period basis, exports for the nine months period under review increased by 45 percent from 143 tonnes.

In terms of overall conductor volumes sold during the third quarter to June 2020, tonnage declined to 393 tonnes from 540 tonnes in the prior comparable period. And on a year-to-date basis (nine months), overall volumes were also down to 1 228 tonnes from 1 384 tonnes over the same period in 2019.

However, management is optimistic that volumes will pick up in the fourth quarter to at least match prior-year levels.

"Despite local volumes being 27 percent below the same quarter last year mainly due to the original Covid-19 lockdown, we are still confident that by year-end our volumes will be in line with the previous year," said CAFCA in its latest trading update.

"To ensure local and export sales requirements are met and also as a hedge against hyperinflation CAFCA is increasing finished goods stock levels, which are now currently at 806 tonnes against a monthly sales model of 140 tonnes."

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