Govt secures US$500m coal to fertiliser investment to boost local production

Government is accelerating efforts to strengthen Zimbabwe’s fertiliser value chain, with plans to inject US$500 million into a coal-to-fertiliser production plant aimed at boosting domestic supply and shielding the economy from global market disruptions.

According to the Ministry of Industry and Commerce, officials recently met representatives from Chinese firms Sunny Yi Feng and Wintrue Holdings in Harare to finalise the investment modalities.

“Extensive discussions with Sunny Yi Feng and Wintrue Holdings regarding the establishment of a coal-based fertiliser production plant in Norton are at an advanced stage.

“A partnership between these two investors stands ready to help Zimbabwe bridge the domestic production gap,” the ministry said.

Sunny Yi Feng Tiles Zimbabwe, based in Norton, is already a key player in the local market, specialising in ceramic tiles, porcelain tiles, tableware and roofing materials. Wintrue Holdings, meanwhile, has been described as a “reputable, proven fertiliser manufacturer” with Zimbabwean officials having conducted site visits to its Chinese plants to assess operational capacity.

Government emphasises that scaling up local manufacturing is crucial for agriculture, which contributes between 12 and 16 percent of national GDP.

“This investment will enable Zimbabwe to become self-sufficient in fertiliser production by 2030, producing over 300 000 tonnes of urea annually,” said Ministry of Industry and Commerce permanent secretary Dr Thomas Utete Wushe, noting that the country’s abundant coal reserves provide a strategic advantage.

Despite having the capacity to produce locally, Zimbabwe remains a net importer of fertiliser. During a recent tour of Windmill Private Limited, the Parliamentary Portfolio Committee on Industry and Commerce highlighted the massive supply gap.

“The country requires approximately 780 000 tonnes of basal and top-dressing fertilisers every year, yet our major producers are operating far below capacity. Windmill is functioning at only 10 percent, which is far below national expectations,” said the committee’s chairperson, Clemence Chiduwa.

To further support the industry, the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development confirmed that the Mutapa Investment Fund (MIF) recently injected US$153 million into the sector.

“The urgency of developing a resilient local fertiliser industry has been heightened by geopolitical tensions in the Middle East and the Russia-Ukraine conflict, which continue to disrupt global trade and inflate the cost of agricultural inputs,” the ministry said.

Zimbabwe currently imports urea and ammonium nitrate from Russia, potash from Belarus, and liquefied natural gas feedstock from Oman, the UAE and Qatar.

Authorities believe that the US$500 million coal-to-fertiliser project combined with MIF support, will significantly reduce the national import bill while ensuring reliable and affordable supplies for farmers.

“Localising fertiliser production is central to securing Zimbabwe’s food security and insulating the economy from external shocks,” the ministry added.

Leave a Reply

Your email address will not be published. Required fields are marked *