BUSINESS REPORTER
Cable manufacturer, CAFCA Limited, is expecting to achieve solid performance following a strong order book in the next three months.
“CAFCA has three months’ sales cover in finished goods stock giving us the ability to meet the +/- 1400 stock lines the market requires in relation to our weekly production target of 16 line items. We believe that the next three months’ volume will be higher than the current quarter’s volume,” company secretary Caroline Kangara.
In its trading update for the quarter to December 31, 2022, CAFCA export volumes were 34 tonnes down compared to the same quarter the previous year.
Conductor tonnes stood at 559 tonnes in the quarter under review from 634 tonnes sold during the comparable period in the previous year.
Kangara said CAFCA customers in Malawi continue to experience difficulty in obtaining foreign currency and as such, there is low stock replacement.
She said Mozambique had a large once off order in the comparative period which was not repeated in the current year. Kangara said there is a large order to be delivered in March which will close the shortfall to this region.
She said the Rwanda market was steady and the company was expecting an order this month from DRC.
CAFCA has opened a consignment stock arrangement in Tanzania, the executive said.
Local volumes for the quarter were 8 % down on the same quarter last year with the drop being mainly in the utilities sector and factory cash sales.
Factory cash sales were down as a result of an uncompetitive US$ price which has since been resolved with the change in the retention rules.
