- Category: Stories
- Published on Sunday, 16 January 2011 14:10
- Written by Charles Rukuni
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Cafca's export sales soared last year, increasing by a staggering 1065 percent. They overtook domestic sales whose volumes declined by 54 percent. Export volumes grew by 112 percent.
According to its results for the year ending December, Cafca had turnover of $31.5 billion, up from $6.7 billion the previous year.
Domestic sales rose by 174 percent from $5.2 billion to $14.2 billion while exports soared by 1065 percent from $1.5 billion to $17.2 billion.
Operating profit increased from $1.7 billion to $10.5 billion with net profit rising from $1.1 billion to $6.8 billion.
The company says there was reduced demand from the Zimbabwe Electricity Supply Authority. This was compensated by ongoing electrification projects in the region.
The company says it intends to increase exports significantly to reinforce its position as a major player in the region but it has suspended exports because of the negative impact of the new monetary policy on exports especially the official surrender rate on export proceeds.
Under the new exchange policy exporters retain 50 percent of their proceeds in their foreign currency accounts and the other 50 percent is deposited with the central bank.
The 50 percent in the FCA has to be liquidated after 60 days. Half of the 50 percent with the central bank should be changed at the official exchange rate of $800 to the greenback while the other half is auctioned.
Previously exporters kept 60 percent of their proceeds and surrendered 40 percent to the central bank. Most exporters, who were cashing in on the thriving blackmarket which was actually run by banks, have not been happy with the auction rate which has seen the Zimbabwe dollar firming since its introduction although it began to slide from 29 January.