Zimbabwe Stock Exchange-listed cables manufacturer Cafca Limited said it has committed US$1,39 million towards new plant and equipment as the group intensifies efforts to bolster capacity, improve operational efficiency.
The investment, which has already received board approval, comes at a time when manufacturers are navigating volatile commodity prices, supply chain disruptions and tightening liquidity conditions across the economy.
In its financial results for the half-year ended March 31, 2026, Cafca said operating conditions during the period remained broadly stable despite persistent pressures in the manufacturing sector.
“Capital expenditure of US$1,39 million for procurement of plant and equipment was authorised by the board and is contracted for at the reporting period,” the company said.
The cables giant also increased inventory holdings to shield production from supply chain instability and fluctuations in raw material costs, ending the period with more than two months’ stock cover in finished goods.
“The company has got firm demand for its products…stock cover of two months in finished goods…adequate working capital and facilities from local banks.”
Part of the company’s funding structure includes a US$878 284 drawdown from a US$1 million loan facility carrying interest of 11% per annum over 36 months.
The facility financed the installation of a 1,2 megawatt rooftop solar plant commissioned in March at Cafca’s Harare operations at a cost of about US$1 million.
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The investment in renewable energy is expected to ease pressure from unstable electricity supply while reducing operating costs. Cafca delivered strong financial performance during the six months to March 31, 2026.
Revenue increased 24% to US$22,21 million, underpinned by stronger sales volumes and firmer global copper prices. “Overall volumes for the six months to 31 March 2026 grew by 14% year-on-year.
This was supported by a 16% and 10% recovery in copper and aluminium volumes respectively,” the company said.
Exports recorded a sharp rebound, surging 109% following a restructuring of the company’s distribution model and the removal of the consignment-stock system.
“Exports improved by 109% following the realignment of the distribution model and the removal of the consignment-stock system. The business continues to benefit from its agility in meeting customer lead times,” Cafca said.
The latest performance highlights growing resilience in Zimbabwe’s manufacturing sector, where companies are increasingly investing in alternative energy, modern equipment and export markets to cushion themselves against domestic economic headwinds.
