- CAFCA invests in 1.18MW solar plant to achieve energy independence, joining widespread corporate shift to solar across all sectors
- Profit after tax plunges 68% to US$1.9 million in FY2025 despite 56% nominal revenue growth to US$39.49 million
- Sales volumes fall 8% YoY amid cheap imports and liquidity crunch at key clients
Harare- CAFCA Limited, in a proactive bid to secure energy independence amid Zimbabwe's persistent power challenges, the nation's sole listed cable manufacturer is advancing the installation of a 1.18MW solar plant, a move poised to bolster operational resilience and mitigate the vulnerabilities exposed in its fiscal year 2025 results.
This renewable energy initiative not only addresses the marginal 2% improvement in power supply during the period but also reflects CAFCA's commitment to sustainable practices in a market fraught with regulatory and economic headwinds.
As the company navigates the aftermath of Statutory Instrument 157 of 2024, which liberalised imports and triggered an 8% year-on-year volume decline, the solar project emerges as a cornerstone of its strategy to enhance efficiency and reduce dependency on an unreliable national grid, potentially transforming future cost structures and production capabilities.
Currently, Hwange Unit 8, a 335MW generator, was taken offline from the national grid in October 2025 for scheduled statutory maintenance, although it was also previously reported to have been taken offline due to a technical fault. This event has reduced Zimbabwe's power generation capacity and is contributing to power outages, prompting extensive reliance on imports for companies, and on the other hand extensive blackouts for the public.
As a way to curb extensive reliance on the national grid, which is unreliable, Zimbabwean companies are installing solar plants , from mining, manufacturing, retail companies , banking, insurance and all sectors of the country. Government has liberalised imports and these and laxed penalties
The fiscal year ended 30 September 2025 painted a mixed picture for CAFCA, with nominal revenue climbing 56% to US$39.49 million, fueled by exchange rate volatility and inflationary pressures, even as real-term revenue slipped 3%. This nominal growth masked deeper operational strains, including a 50% drop in EBITDA, as the company prioritized market share defence over immediate profitability.
Operational highlights offered glimmers of progress amid the downturn, with equipment utilization rising from 70% to 80% through predictive maintenance and operator-centric process controls, demonstrating internal efficiencies that could amplify the benefits of the forthcoming solar plant.
The tobacco selling season provided a second-half volume boost, though it fell short of offsetting an overall 4% contraction, while demand from key utilities like ZESA and the Rural Electrification Fund declined 8% due to liquidity squeezes from contractionary monetary policies. The board's decision to declare a final dividend of US$2.80 cents per share, a 43% reduction from the prior year's US$4.9 cents, reflects prudent capital management in turbulent times, ensuring resources are channelled toward initiatives like the solar installation to safeguard against future power disruptions.
Broader economic dynamics in Zimbabwe reveal a pattern of real-sector erosion, where formal enterprises like CAFCA bear the brunt of policy oscillations that favour imports over local production, often to the detriment of national industrial assets. The company's installed capacity remains underutilized due to cheap foreign alternatives, outdated equipment, softening demand, and high input costs, yet its strategic role in regional industrialization cannot be understated, local cable manufacturing could drive economies of scale once modernization, including the solar plant, takes hold.
By fostering stronger direct market ties and favourable trade terms with clients, CAFCA can leverage its domestic production edge to streamline supply chains, outpacing import-dependent competitors. Preserving such assets demands regulatory foresight that balances competition with protectionism, allowing firms like CAFCA to harness renewable energy investments for sustained growth in an evolving African market landscape.
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