Cable producer, CAFCA’s conducter sales went down to 538 in the third quarter of 2019 as compared to 582 acquired in the same period last year.
Company secretary Caroline Kangara in the trading update for the third quarter ended June 2019, says the tons sold per month dropped going into the fourth quarter of the year.
“The drop in local demand is attributed to the implementation of the recessionary monetary
policies,” Kangara says.
“The impact of the chronic power shortage in the country makes it difficult to predict future
demand for cable.”
Although the sales went down, exports by volume are 10.35 of sales compared to 4.8% in the 2018.
“Despite the downturn and to ensure all products required locally are readily available we have justified keeping the numbers employed at the same level as last year,” the secretary says.
“Finished goods stocks have been increased to adequately cover any up turn in the market.”
Current sales for 2019 are at 1384 as compared to the 1588 acquired last year.
Zimbabwe companies have been reporting of the negative effects of inflationary pressures that have been taking place as the country counties to implement measure that reintroduce the right fundermentals off the economy to ensure growth.
Other challenges that are facing companies include the buying power that has gone down and foreign currency shortage that makes it difficult to import raw materials into Zimbabwe.