Metal Fabricators of Zambia (ZAMEFA) Plc has announced a substantial increase in revenue for the financial year ending March 31, 2025, posting over K1.77 billion—up from K1.39 billion recorded in the previous financial period. The company attributes this strong performance to elevated global copper prices and the depreciation of the Zambian Kwacha against the US dollar, which significantly boosted local currency revenues.
The rise in revenue, largely driven by export earnings and international copper pricing trends, demonstrates ZAMEFA’s resilience in a fluctuating macroeconomic environment. As copper remains Zambia’s leading export commodity, firms like ZAMEFA are capitalizing on favorable market conditions despite internal cost pressures.
In its latest financial results, ZAMEFA noted a 0.74 percentage point increase in gross profit compared to the previous period. The company highlighted that the relatively modest growth in gross profit—compared to the spike in revenue—was due to the pass-through effect of higher copper prices. These prices, while elevating revenue, also increased input costs, thereby narrowing the gross margin gains.
“The main reason for the difference between the rate of growth in the revenue and the rate of growth in the gross profit is the pass-through effect of higher copper prices,” the company said in its financial report.
Despite strong top-line growth, ZAMEFA experienced an eight percent decline in operating profit, which dropped to K77 million. This decrease was primarily attributed to the impact of a weaker Kwacha on dollar-denominated operating expenses, combined with persistent inflationary pressures. These factors significantly eroded profitability, reflecting the challenges faced by local manufacturers in maintaining cost efficiency in a volatile currency environment.
ZAMEFA’s performance underscores the dual-edged nature of Zambia’s commodity-dependent economy—where global market booms can drive revenue, but domestic economic conditions like currency depreciation and inflation can offset bottom-line gains. The company’s ability to grow its revenues despite these headwinds speaks to its strategic positioning in the copper value chain.
As the demand for copper continues to rise globally—especially driven by green energy and infrastructure investments—ZAMEFA remains a key player in Zambia’s industrial landscape. The firm’s future performance will likely hinge on its capacity to manage costs, hedge currency exposure, and leverage copper’s long-term growth trajectory.