CABLE maker, Cafca Limited expects to complete construction of its 1,2-megawatt (MW) solar project before the end of its financial year on September 30, 2026, as it invests in more efficient production processes to cut costs.
Cafca posted an increase in expenditures during its financial year ended September 30, 2025, to US$36,68 million from a prior year comparative of US$18,99 million.
These expenses included cost of sales, distribution costs, administrative expenses, and an allowance for impairment of trade and other receivables.
The cost of sales was the largest expenditure, with the firm recording it at US$30,47 million during the 2025 financial year, from a prior year comparative of US$14,86 million.
The other expenses that Cafca faced included production overheads, entertainment expenses, long service awards, recruitment, refreshments, training and development, board lunches, withholding tax, and ZimTrade levy.
Cafca’s employee benefit expenses also rose to US$4,58 million during the 2025 period from a prior year comparative of US$3,45 million.
To mitigate these challenges, Cafca is exploring safer, more efficient production processes.
“We increased our copper recovery capacity through expansion of Electrolysis Plant by putting four additional cells doubling the plant's output.
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“We continued investing in safer, more efficient production processes by installing a new stranding machine,” Cafca chief executive officer Vimbayi Nyakudya said in the firm’s newly released sustainability report for the year ended September 30, 2025.
“In FY25, we put up a milestone in our sustainability journey with the initiation of a 1,2-Megawatt solar project which will be completed in FY26.
“This initiative not only reduces our dependence on the national grid but also significantly lowers our green¬house gas emissions, reinforcing our position as a pioneer in environmentally responsible manufacturing.”
He said that guided by ISO 14001 Environmental and ISO 50001 Energy Management standards, Cafca is turning sustainability into actions, showing that responsible energy use and operational efficiency can go hand in hand.
Energy is a major operational input at Cafca, as the company uses electricity, diesel, and liquefied petroleum gas (LPG) in its processes.
The use of all these energy sources comes as power shortages in Zimbabwe continue to pose operational challenges and increase reliance on diesel generators.
“Total energy consumption reduced by 3%, and production output decreased by 3% as well, resulting in the intensity slightly increasing by 1%,” Cafca said.
“This is insignificant. Electricity, which is the major energy source, decreased by 3% because of reduced production.”
According to Cafca, diesel consumption continues to be influenced by national power outages, while efficiency controls helped stabilise emissions, and LPG usage remained within controlled parameters.
“CAFCA's cost structure in 2025 remained under pressure due to exchange rate volatility, high energy costs, imported raw material prices, and increased diesel usage during power outages.
“Despite these challenges, the company delivered strong cost management through several strategic measures,” Cafca said.
“These included maintaining over 12 months of continuous electrolysis plant uptime, reducing waste, optimising production and procurement processes, and implementing tighter production controls alongside improved energy planning and load management to lower the production cost per tonne.”
The company noted that collectively, these initiatives strengthened Cafca’s competitiveness against imported products.
“The electrolysis Plant significantly increased the proportion of locally recovered copper, strengthening industrial self-sufficiency,” Cafca said.
“The plant monthly generates approximately 10 tonnes of 99,99% pure copper sheets that are ready to use in cable making, reducing the demand for imported copper by approximately 5%.”
Cafca posted a profit after tax of US$1,86 million for the year ended September 30, 2025, a near 68% drop due to Statutory Instrument (S.I.) 157 of 2024, which allows the influx of cheaper, substandard cables.
SI 157 of 2024, issued on September 20, 2024, lists several products on the Open General Import Licence schedule, including cables.
These imports caused Cafca’s market share to fall to 49%, from approximately 60%, during its 2025 financial year.
“CAFCA will continue investing in strategic areas to enhance economic sustainability,” Cafca said.
“(These include) implementing solar energy integration to reduce emissions and diesel costs; Increasing production volumes through production optimisation and efficiency; expanding copper recovery capacity and reducing raw material procurement costs; strengthening export market competitiveness; Improving pricing structures to protect margins; advancing digitalisation of our systems and processes and data-driven decision-making.”
Cafca added that its resilience, strong brand, and long-standing technical capability positions the company well for continued growth.
Cafca indicated that the firm had US$4,48 in current assets for every US$1 of current liabilities as of September 2025, reflecting robust liquidity and an ability to comfortably meet short-term obligations.
