CAFCA sales volume up on mining bloom

  • Local volumes up 47%
  • Export volumes increase by 25%
  • Finished goods stock levels at 738 tonnes

ZSE – listed manufacturer and supplier of cable and allied products for the transmission and distribution of electronic energy and information, CAFCA Limited, has reported a sales volume increase of 47% for the three months to December 2020 (Q1 2021) owing to the blooming of the mining, utilities and retail projects.

CAFCA’s primary market is Southern and Central Africa, although it has an export footprint that extends to parts of Europe, including Russia. The company prides itself in manufacturing over 900 cabling products to British, South African and Zimbabwe quality standards, including 11KV XLPE cables.

In a trading update for the period under review, the company highlighted the growth in export volumes by 25% compared to the same quarter in the prior year. The company exports to South Africa, Mozambique, Botswana Zambia, and the DRC.

“Local volumes increased by 47% year-on-year with utilities, mining and retail being very buoyant,” Cafca said.

The company is benefiting largely from the growing renewable power investments by mining companies who have recently been resorting to renewable sources of energy such as solar thus the need for cables.

Also the company’s ability to stock up finished products has aided them to sail through the disruption caused by the pandemic and lockdown restrictions

“Efforts continue to maintain finished goods stock levels which are currently at 738 tonnes as a strategy against logistical and currency instability and to ensure we meet local market requirements,” the company said.

Commenting on the outlook, the company said the next three months are likely to be the same as this quarter’s volumes and forecasted a six-monthly volume that will be well above the previous year.

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