Cafca profitability under threat from increased competition
CABLE manufacturer, Cafca Limited (Cafca) says the introduction of Statutory Instrument (SI) 157 of 2024, which opened the electrical cable market to imports, has increased competition, eroded margins and suppressed volume growth.
According to SI 157 of 2024 issued on September 20, 2024, several products were added to the Open General Import Licence (OGIL) schedule, including cables.
OGIL is a blanket authorisation that allows for the import of most goods without the need for specific import licences or permits.
In its trading update for the third quarter ended June 30, 2025, Cafca said by adding cables to the OGIL schedule, this increased competition for the firm eroding margins.
“Government efforts to curb smuggling and the importation of substandard products — through the Local Content Steering Committee — positively influenced the market.
“This collaboration between industry and government is a welcome development, and Cafca remains committed to supporting industrialisation through sustainable frameworks,” Cafca said.
“However, the introduction of SI 157 of 2024, which opened the electrical cable market to imports, led to increased competition, eroding margins and volume growth.
“Cafca continues to engage authorities to ensure fair competition that preserves industry capacity and commercial viability.”
https://www.newsday.co.zw/business/article/200045151/cafca-profitability-under-threat-from-increased-competition