Covid-19 pandemic boosts CAFCA exports
TINASHE MAKICHI
Listed cables manufacturer, CAFCA Holdings Limited, says Covid-19 pandemic has boosted its export initiatives as its competitors were restricted logistically.
Export volumes for the company increased 90% in the five months to February 2021 compared to the prior comparative period.
CAFCA managing director, Rob Webster, told Business Times that the company’s strategy was to build up stocks and place consignment stocks into the region.
“Covid-19 has assisted our export initiatives as our international competitors have been restricted logistically from getting their products into the region. Our strategy pre-Covid-19 was to build up stocks and place consignment stocks into the region,” Webster said.
“For the five month period to February 2021 compared to the corresponding period last year exports in volume terms would have increased by 90%.”
During the period under review, CAFCA’S local volumes increased 47% year on year with utilities, mining and retail being very buoyant.
The firm is looking at maintaining finished goods stock levels which are currently at 738 tons as a strategy against logistical and currency instability and to ensure we meet local market requirements.
“We have no reason to believe that the next three months will be any different to this quarter’s volumes. Accordingly, we are forecasting a six-monthly volume that will be well above the previous year’s six-monthly volume,” company secretary Caroline Kangara said.
Established in 1947, CAFCA is part of CBi Electric African Cables of the Republic of South Africa (RSA), which in turn is owned by Reunert Limited (RSA).
The firm also manufactures and supplies cable and allied products for the transmission and distribution of electrical energy and information primarily in Southern and Central Africa.
The company manufactures over 900 cabling products including 11KV XLPE cables. CAFCA offers a toll manufacturing option to all its customers who can access key raw materials such as copper and aluminium, which are converted at the cost of value addition.
CAFCA is currently engaged in toll manufacturing for the South African Cable market through CBi Electric African Cables.
The firm also recovers decommissioned cables for recycling within a legal and environmentally friendly framework.
Recovered cables can be exchanged for other products within our manufacturing range.
