Cafca export volumes up 34 percent

February 25, 2022

Cafca export volumes up 34 percent

Oliver Kazunga, Senior Business Reporter
LISTED cable manufacturer, CAFCA posted a 34 percent increase in export volumes to 74 tonnes in the first quarter ended December 31, 2021 compared to 55 tonnes in the same period the previous year.

In a trading update for the quarter under review, CAFCA said local volumes were in tandem with the previous year largely owing to no significant changes in the macro-economic environment with foreign currency pricing and allocation.

“Export volumes were 74 tonnes in the current quarter versus 55 tonnes in the same quarter last year.

“In addition to a large order to Mozambique we also had our first sales from our consignment stock arrangement in Rwanda,” said the company.

“Local volumes were in line with the previous year mainly due to no significant changes in the macro-economic environment with foreign currency pricing and allocation being the focus of all economic commentary,” it said.

CAFCA noted that Covid-19 policies and protocols have become predictable and hence were no longer a risk to be considered in short-term planning and mitigation.

“Finished goods stock levels, which are currently at 671 tonnes against a budgeted monthly sales model of 225 tonnes is below our target due to foreign exchange constraints.

We believe that the next three months volume will be higher than the current quarter’s volume.

Accordingly, we are forecasting a six-monthly volume increase over the previous year’s six-monthly volume of around 10 percent,” said the manufacturing concern.

Meanwhile, CAFCA last month said it was optimistic that its businesses would remain buoyant in the 2022 financial year on the back of improved demand for its product.

To meet the impending demand, the cable producer has hinted that it already has a stock cover of three months in finished goods putting the company in sound position ahead of product.

CAFCA’s primary market is Southern and Central Africa, although it has an export footprint that reaches into European Union (EU) including Russia.

– @KazungaOliver.