Zimbabwe’s largest cable manufacturer, CAFCA Limited, recorded a sharp rise in revenue in the year ended September 30, 2025, even as profits fell significantly, reflecting a deliberate strategy to defend market share in an increasingly competitive and import-heavy environment.

According to its 2025 Integrated Annual Report, CAFCA’s revenue surged by 56 percent to US$39.5 million, up from US$25.3 million in the prior year. However, operating profit declined to US$2.7 million from US$7.9 million, while profit for the year dropped to US$1.9 million, down from US$5.8 million in 2024. Earnings per share fell to 5.50 US cents from 17.14 US cents.

The company said the profitability squeeze was largely the result of absorbing costs to remain competitive following regulatory changes that opened the domestic market to increased imports. Despite the pressure, CAFCA maintained a final dividend of 2.80 US cents per share, signalling confidence in its balance sheet and long-term prospects.

In its commentary, the board said the group “prioritised market presence and value chain stability over short-term profitability,” adding that management made conscious pricing and cost decisions to support customers and defend its dominant position in the local market. 

CAFCA retained a 49 percent market share during the period, underscoring its resilience despite heightened competition from regional and international players.

Operational performance emerged as a key bright spot in the reporting period, with the company delivering notable efficiency gains across its manufacturing operations. Equipment utilisation improved from 70 percent to 80 percent, while on-time delivery rose sharply from 83 percent to over 100 percent. Quality metrics also strengthened, with first-pass yield increasing from an average of 70 percent to above 90 percent.

Management said these improvements were the result of targeted investments and tighter process controls. “Our focus during the year was to embed manufacturing excellence and operational discipline, ensuring that quality, reliability and safety remain non-negotiable,” the report noted.

A major strategic investment during the year was the initiation of a 1.2-megawatt grid-tied rooftop solar project, which is expected to be completed in the 2026 financial year. The project is designed to reduce exposure to power supply disruptions while lowering energy costs and carbon emissions. 

CAFCA also expanded its Electrolysis Plant, doubling copper recovery capacity and reducing dependence on imported raw materials at a time of volatile global commodity prices.

Looking ahead, the board said it expects a more stable trading environment in 2026 and believes the company is well positioned to recover margins while pursuing growth opportunities. 

“We are confident that the foundations laid in 2025 will allow CAFCA to regain momentum, strengthen competitiveness and deliver sustainable value to stakeholders,” the board said.

Strategic priorities for the coming year include expanding the product portfolio to include solar photovoltaic and specialised cables, completing the solar energy project, and accelerating digital transformation through ERP and artificial intelligence integration. 

CAFCA is also continuing a phased modernisation programme to replace ageing DC motors with more efficient AC motors, aimed at reducing costs and improving reliability.

The company maintained a strong focus on governance and risk management, identifying import competition, machine obsolescence, commodity supply volatility and power instability as its key risks. Mitigation measures include ongoing capital investment, supplier diversification and energy self-sufficiency initiatives.

On sustainability, CAFCA reported progress across environmental, social and governance indicators. The company maintained ISO certifications across quality, environmental management, health and safety, and energy management systems. It recorded zero major environmental incidents and reduced its total recordable incident rate to 0.3 from 0.9, well below industry benchmarks. 

Employee wellbeing initiatives were also strengthened, including enhanced mental wellness programmes and the launch of a graduate trainee scheme to address skills shortages.

Despite a difficult operating environment, CAFCA’s performance in 2025 highlights a company choosing long-term resilience over short-term earnings, betting that operational efficiency, sustainability investments and market leadership will underpin a stronger recovery in the years ahead.