Source: Four fertiliser plants on the cards to cut US$2bn import bill – herald
Debra Matabvu
THE Government will establish at least four new fertiliser production plants over the next four years and partner private investors to recapitalise existing facilities, as part of an ambitious programme aimed at reducing the country’s heavy reliance on imports.
According to the new five-year economic plan, the country is spending about US$2 billion annually on importing fertiliser due to insufficient local production capacity, with national demand standing at roughly 400 000 tonnes of basal and 380 000 tonnes of top-dressing fertiliser a year.
The Government, through the Mutapa Investment Fund, will develop a major phosphate and basal fertiliser plant capable of producing 1,2 million tonnes of phosphate concentrate annually.
“Over the NDS1 (National Development Strategy 1) period, the country remained heavily dependent on imported fertiliser to meet the national demand, spending about US$2 billion on fertiliser imports,” the NDS2 document reads.
However, over the next five years, the chemical and fertiliser industry will be “revived to promote local production of fertiliser and chemicals, leveraging locally available raw materials to boost agricultural productivity”.
Under the new programme, the Government intends to modernise fertiliser plants, blending facilities and distribution systems, as well as use local raw materials such as phosphates and ammonia gas.
The plan envisages Mutapa partnering private investors to recapitalise Chemplex Corporation and its subsidiaries, including Dorowa, Zimbabwe Phosphate Company, Zimbabwe Fertiliser Company and Sables Chemicals.
“In this regard, private investors will partner Mutapa Investment Fund in capitalising Chemplex Corporation along its fertiliser value chain comprising Dorowa, Zimbabwe Phosphate Company, Zimbabwe Fertiliser Company and Sables Chemicals Industries.”
Projects lined up include the Shawa Hills all-in-one phosphate and basal plant, expected to produce more than 1,2 million tonnes of phosphate concentrate and 3,6 million tonnes of basal fertiliser each year.
A joint venture between Rusununguko-Nkululeko Holdings and Verify Engineering will also establish coal-to-fertiliser facilities in Mkwasine, Chiredzi, with capacity to produce 270 000 tonnes of ammonium nitrate and 250 000 tonnes of urea annually.
Additional plants will be pursued in Mazowe and Kwekwe, with a combined capacity of two million tonnes a year, alongside a one-million-tonne organic fertiliser facility expected to create more than 5 000 direct and indirect jobs.
The Government says the investments will “enhance and revamp production capacity, ensuring that Zimbabwe becomes self-sufficient in fertiliser production, with the scope to export to the regional market”.
The authorities also plan to incentivise private investment in coal-to-fertiliser technologies and emerging organic fertiliser production as part of wider efforts to integrate small and large producers into the national value chain.
The Government is already working with the Dangote Group to set up a fertiliser plant, a development officials say will position Zimbabwe as a key regional player in agricultural input supply and strengthen national food security.
The post Four fertiliser plants on the cards to cut US$2bn import bill appeared first on Zimbabwe Situation.