HomeBusiness DigestCafca exports tumble despite RBZ incentives

Cafca exports tumble despite RBZ incentives

Eric Chiriga

CABLE manufacturer Cafca says its export volumes declined by 77% in spite of the export incentives put in place by the Reserve Bank of Zimbabwe.

al, Helvetica, sans-serif”>“Significantly, export turnover and volumes were down 65% and 77% respectively compared to the prior year and the viability of exports remained marginal throughout the year,” Honour Mkushi, chairman of Cafca, said.

Mkushi said despite taking advantage of available export incentives, export volumes and turnover had declined and would remain depressed until export proceeds could be achieved at competitive rates of exchange.

Other exporting companies have expressed similar concerns over the official exchange rate.

The Zimbabwe dollar is trading at about US$1 to $14 000 and GBP1 to $22 000 on the parallel market while on the foreign currency auction, it is trading at US$1 to $6 095 and GBP1 to $11 523.

“Viability of exports remained marginal throughout the year,” Mkushi said. Cafca’s total volumes for 2004 were 47% down on the previous year and tonnages were 1 169 down from 2 238 tonnes.

However, the group’s turnover for 2004 was about $37 billion, 20% higher than the prior year figure of about $31 billion.

In 2003 Cafca exported about 50% of its production to Botswana, Malawi and Zambia.

The company also secured a market in Mozambique where it supplies cables through an agent. Only recently, Uganda was identified as the new market for telephone cables.

About two years ago, Cafca formed a partnership with its majority shareholder, African Cables South Africa, to consolidate its foothold in the regional market.

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