CAFCA posts ZWL$262m loss

RYAN CHIGOCHE

CAFCA Limited swung into a loss of  ZWL$262m in the year ended September 30, 2021 from a ZWL$707m profit  achieved in the previous year, as the listed cables manufacturer took a hit from the effects of the Covid-19 pandemic.

The company’s board chairman, Honour Mkushi said the pandemic disrupted global supply chains.

He said the company also battled shortages of  foreign currency. This saw CAFCA being forced to halt expansion plans and spend more on plant maintenance as well.

“No investment was made this year on the new plant as all the foreign currency we could source was prioritised to procuring raw materials and spare parts. The age of our equipment requires a significant investment in engineering spares and at the year-end we are carrying ZWL$63.8m in engineering spares,” Mkushi said.

However,  the loss came even as revenue soared 49% as domestic demand rose.

The company doubled its output owing to an improved operating environment as the world was slowly adapting to living with the pandemic.

Volumes for the group increased to 2 604 tonnes in the reviewed period from 1 744 tonnes in the prior year with local demand increasing by 57% whilst exports increased by 16%.

Revenue grew to ZWL$3.9m in the reviewed period from ZWL$2.5m in the previous year.

CAFCA  is confident the trend will continue this year.

However, the company’s managing director, Robert Webster, bemoaned the acute shortage of foreign currency which has a bearing on the momentum and growth.

“Provided timeous, we are confident that volumes will grow in the current year both in the local and export market,”  Webster said.

CAFCA manufactures and supplies cables for the transmission of electrical energy and information, primarily in southern and central Africa.

It also manufactures over 900 cabling products to British and South African markets including 11KV XLPE cables.

CAFCA Limited also recovers decommissioned cables for recycling and supplies telecommunication cables ranging from indoor to underground as well as aerial self-supporting cables.