Zimbabwean cable manufacturer Cafca Limited reported annual profits plummeting 68 percent to $1.86 million after government deregulation opened markets to cheaper imported alternatives. Chairman Honour Mkushi attributed the decline to Statutory Instrument 157, which eliminated import restrictions and flooded the market with lower-quality products despite the company achieving 56 percent nominal revenue growth to $39.48 million.
Chief executive Vimbayi Nyakudya acknowledged volume sales dropped 8 percent as operating margins fell by half, prompting workforce reductions and equipment modernization. The firm maintained strong liquidity with current assets exceeding liabilities by more than four times, though total assets decreased to $36.73 million. Management implemented pricing adjustments and inventory optimization while positioning the business to withstand future market volatility through manufacturing improvements.
Chief executive Vimbayi Nyakudya acknowledged volume sales dropped 8 percent as operating margins fell by half, prompting workforce reductions and equipment modernization. The firm maintained strong liquidity with current assets exceeding liabilities by more than four times, though total assets decreased to $36.73 million. Management implemented pricing adjustments and inventory optimization while positioning the business to withstand future market volatility through manufacturing improvements.
