CAFCA Limited ( 2019 Abridged Report

We have extracted the Company’s Secretary Statement from the abridged report for CAFCA Limited (, listed on the Zimbabwe Stock Exchange:


Turnover has increased from $30.4 million in the previous year to $93.4 million in the current year despite volumes dropping 24%. The increase is attributable to the movement in exchange rates which moved from a 1 to 1 exchange rate at the beginning of the year and closed 15 to 1 at the end of the year. In volume terms exports increased 70% and 54% in value terms.

Pretax profit for the year at $54.1 million increased against the prior year of $5.2 million at a greater rate than the turnover increase due to large holdings of finished goods at the old exchange rate and due to costs not increasing as quickly as the exchange rate movement.

Earnings per share has grown by a multiple of 11 from 11.67 cents per share to 124.51 cents per share.

Statement of Financial Position

Looking at the statement of financial position what is significant is the growth in stocks which represents a strategic intent to increase finished goods stock as a hedge against inflation and to ensure the market has ready access to the large’ range of CAFCA product lines. We Me carrying 675 tonnes of finished product against a monthly sates model of 140 tonnes.

The increase in liabilities represents customer prepayments at the end of the period – significantly CAFCA has no foreign currency liability.


Looking ahead the company is well placed to take advantage of any opportunities that may arise in either the local or export market and has adopted adequate mitigating strategies against the hyperinflation and challenging local economic environment.


A final dividend has not been supported by the Board as all cash resources and new borrowings will be required to finance working capital owing to the effect of hyperinflation.

C Kangara
Company Secretary