• CAFCA recorded a 3% year-on-year increase in sales volumes, supported by a 21% recovery in copper-based products and strong export growth
• Exports surged 77% and retail volumes rose 35%, offsetting a 42% decline in utilities demand due to sector liquidity constraints
• Revenue grew 29% while operating profit increased 7%, as production volumes rose 13% and efficiency initiatives improved manufacturing performance

Harare - Zimbabwe Stock Exchange listed cable manufacturer CAFCA Limited has recorded a 3% year-on-year increase in sales volumes for the first quarter ended 31 December 2025, signalling a gradual strengthening of demand across infrastructure-linked sectors and export markets, according to the group’s AGM trading update.

The growth was underpinned by a 21% recovery in copper-based products, although aluminium volumes declined 25% against the comparative period.

The performance reflects improving project activity within construction and mining, alongside firmer macroeconomic conditions that supported capital spending and industrial uptake.

Segment performance showed a mixed but generally positive trajectory, with retail volumes expanding 35%, driven by stronger channel partner integration and a renewed customer-service focus within factory shops, while commercial volumes remained broadly stable at 1% growth.

Export markets emerged as a standout contributor, with volumes surging 77% following the realignment of CAFCA’s distribution model and the removal of the consignment-stock system a move that enhanced delivery agility and shortened customer lead times.

However, demand from utilities softened markedly, with volumes declining 42% as liquidity constraints within the sector limited offtake.

Operationally, the quarter reflected efficiency gains within the manufacturing base, with production volumes increasing 13% year-on-year as the company adapted its stocking and manufacturing approach to shifting demand patterns. To mitigate copper price volatility and supply chain disruptions, CAFCA adopted a front-loading strategy, with copper raw material stocks at quarter-end 154% ahead of the comparative period. Quality initiatives also delivered tangible improvements, lifting first-pass yield 35% and reducing fault cards 42%.

Equipment reliability strengthened during the period, with breakdown hours falling 25%, although power quality remained a constraint. Despite no recorded outages, 324 production hours were lost due to voltage fluctuations, compared with 99 hours previously. In response, CAFCA is commissioning a rooftop solar plant expected to come online at the end of February 2026.

As a result, revenue increased 29% year-on-year, supported by both volume growth and higher copper prices, while operating profit rose 7% following cost optimisation measures implemented in the prior year.

Looking ahead, CAFCA remains optimistic, banking on growth opportunities arising from infrastructure investment, export market expansion and ongoing factory modernisation initiatives.

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