CAFCA Invests in Solar Power to Offset Energy Costs Amid Rising Import Competition

HARARE – CAFCA Limited, Zimbabwe’s largest cable manufacturer and exporter, is installing a 1.2-megawatt rooftop solar power plant as part of a broader strategy to stabilise operations and reduce escalating energy costs. The investment comes as local manufacturers grapple with persistent power supply constraints and rising electricity tariffs, which have eroded competitiveness across Zimbabwe’s industrial […]

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HARARE – CAFCA Limited, Zimbabwe’s largest cable manufacturer and exporter, is installing a 1.2-megawatt rooftop solar power plant as part of a broader strategy to stabilise operations and reduce escalating energy costs.

The investment comes as local manufacturers grapple with persistent power supply constraints and rising electricity tariffs, which have eroded competitiveness across Zimbabwe’s industrial sector. By integrating solar generation into its energy mix, CAFCA aims to secure a more reliable power source while lowering long-term operating expenses.

CAFCA currently produces approximately 2,500 metric tonnes of cables annually, supplying key utility providers and meeting growing demand from sectors such as mining, construction, telecommunications, and agriculture. The company plays a critical role in supporting infrastructure development and electrification projects across Zimbabwe and the wider region.

However, the firm is facing mounting pressure from low-cost imports following the government’s decision to liberalise the cable market. Industry data shows CAFCA’s domestic market share declined from 60% to 49% over the past year, highlighting intensifying competition from foreign producers, particularly from Asia.

Analysts say the solar investment is both a cost-containment measure and a strategic hedge against structural challenges in Zimbabwe’s manufacturing environment. “Energy remains one of the largest input costs for heavy industry. Firms that can secure alternative power sources will be better positioned to maintain margins and compete with imports,” a Harare-based industry analyst noted.

The move also aligns with a broader shift among Zimbabwean manufacturers toward renewable energy solutions, as companies seek to mitigate the impact of grid instability while advancing sustainability targets. For CAFCA, the solar rollout could prove pivotal in preserving its market position and reinforcing its export competitiveness in an increasingly liberalised and price-sensitive market.

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