[2007-07-13]  EA Cables Tanzania records $4.3m revenue growth
East African Cables Tanzania Ltd has posted a Tsh5.3 billion ($4.3 million) growth in revenue in its 2006 trading results, reversing a 10-year dry spell.

Consequently, the firm — a subsidiary of Kenya’s East African Cables Ltd — paid the Tanzania government, its part-owner, Tsh5.9 million ($4,795) in dividends.

“Our dividend cheque to the government may be modest today but I reassure all that we have put in place stringent management controls and adopted a customer focused approach to our business,” said the company’s managing director, Muriithi Ndegwa.

Formerly known as Tanzania Daesung Cable Company, the firm has been undergoing a strategic turnaround under Kenya’s East African Cables.

“We are working towards achieving a more than 400 per cent growth in revenue by the close of our current trading year,” Mr Ndegwa said.

The prevailing economic environment in Tanzania has also boosted the firm’s trading fortunes. In addition, a concerted effort to sell copper products coupled with improved aluminium business from the Tanzania Electric Supply Company (Tanesco) have helped.

Tanzania Treasury Registrar Agnes Bukuku said the firm’s profitability had served to enhance the government’s confidence in its viability.

She added that the government would extend further incentives to facilitate the firm’s profitable operations.

Mr Ndegwa said the company has opened up regional sales offices in Mwanza, Arusha and Mbeya as part of its market development strategy.

He added that plans to upgrade the firm’s manufacturing equipment to boost production are on track even as they step up partnership with Nexans through East African Cables, Kenya.

The company is also building capacity to meet the growing demand for quality copper cables in the Tanzanian market.

“With significant national economic growth expected from key sectors such as energy, tourism, construction, mining and agriculture, we are optimistic of registering further growth,” noted Mr Ndegwa.

East African Cables Kenya has a majority 51 per cent stake in the Tanzanian firm while the government controls 29 per cent of the share capital. The shareholders are Tanesco and the Tanzania Development Finance Company Ltd each holding 10 per cent.

Within the region, East African Cables is one of the fastest growing publicly listed companies and a leading manufacturer of electrical cables and conductors, as well as a leading distributor of data and telecommunication cables and accessories for the East and Central Africa region.

The firm manufactures copper electrical cables and conductors for domestic as well as industrial applications. The next range of manufactured products is the aluminium conductors and cables used for power distribution and transmission over national gridlines.

East African Cables is the sole distributor for Nexans — a world leader in the cable industry — in East and Central Africa. Products from Nexans include medium and high voltage cables, telecommunication cables, data cables, local area network systems, fibre optic cables and related accessories.

East African Cables was incorporated in 1966. A public limited company listed on the Nairobi Stock Exchange, it is the premier cable manufacturer in East and Central Africa. It comprises two manufacturing facilities in Nairobi and Dar es Salaam. The Nairobi factory was commissioned in 1966 while the Dar facility was commissioned in 1977 and joined the East African Cables family in October 2005.


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