Cables manufacturer CAFCA Limited delivered a sharp rise in profitability for the half-year ended March 31, 2026, as stable monetary conditions and stronger infrastructure spending boosted demand across the construction sector.
In its unaudited abridged financial statements, the company said the first half of the financial year benefited from “stability in trading conditions” supported by a strong agricultural season, increased diaspora remittances, and firm gold prices.
Management also credited a “sustained tight monetary regime” for maintaining stability in the Zimbabwe Gold (ZWG) currency and keeping inflation within single digits.
The improved operating environment translated into significantly higher earnings.
CAFCA reported a profit for the period of US$1.83 million, up from US$587,599 recorded during the comparable period last year.
The result signals a substantial recovery in margins and operating performance amid improving business confidence.
The company said the construction industry emerged as a major driver of demand during the six-month period.
“Consequently, the construction sector benefited significantly as both corporate and household players increased allocations of amounts spent to infrastructure projects,” the company said in its commentary accompanying the results.
The performance reflects broader trends within Zimbabwe’s economy, where relative currency stability has started to restore planning certainty for manufacturers and contractors after years of exchange-rate volatility and inflationary pressures. Businesses have increasingly argued that predictable monetary conditions remain critical for sustaining industrial recovery.
CAFCA also welcomed government efforts aimed at improving the ease of doing business, particularly through governance reforms and the harmonisation of taxes and levies.
“We acknowledge Government efforts to improve the ease of doing business by strengthening governance and harmonizing regulatory levies and taxes,” the company said.
However, the manufacturer warned that the fight against smuggling and unfair trade practices remains central to protecting local industry. The company expressed cautious optimism that authorities’ ongoing crackdown would eventually deliver positive results if sustained over the long term.
The latest numbers suggest CAFCA is capitalising on renewed activity in housing, mining, and infrastructure development, sectors that traditionally underpin demand for electrical cables and related products. Rising investments in construction projects by both households and corporates appear to have strengthened order volumes during the review period.
Analysts say the company’s rebound also highlights the extent to which Zimbabwean manufacturers remain highly sensitive to macroeconomic conditions. The relative stability of the ZWG during the reporting period offered firms greater pricing visibility and eased pressure on working capital management.
Despite the improved earnings position, the outlook for the second half of the year will likely depend on whether authorities can maintain currency stability and contain inflationary risks. Market watchers also expect infrastructure spending and mining activity to remain key demand drivers for the cables industry.