Zimbabwe has secured a major investment deal that could transform its agricultural sector and enhance its food security. The country’s authorities have signed a memorandum of understanding with United Capital Fertiliser Limited (UCF), a Zambian firm that specializes in fertiliser production and supply.
Under the agreement, UCF will invest $700 million in the construction of two fertiliser manufacturing plants in Zimbabwe, one for Compound D and another for Urea. Compound D is a widely used fertiliser that contains nitrogen, phosphorus and potassium, while Urea is a nitrogen-rich fertiliser that boosts crop growth and yield.
The deal also includes the supply of 30,000 tonnes of Urea and Compound D, respectively, for the 2023/24 farming season in Zimbabwe.
A Win-Win Partnership
The investment by UCF is expected to create thousands of jobs for Zimbabweans and reduce the country’s dependence on fertiliser imports. Zimbabwe has been facing chronic shortages of fertiliser, especially ammonium nitrate, due to foreign currency constraints and low local production.
This has adversely affected the productivity and profitability of the country’s farmers, who rely on fertiliser to improve their soil fertility and crop quality.
According to UCF, the construction of the Compound D plant will begin in early 2024 and will be completed in time for the 2024/25 agricultural season. The Urea plant will follow suit with a projected completion date of 2025.
The company said it has successfully implemented similar projects in Zambia, where it operates the largest fertiliser manufacturing plant in the region.
“We are excited at the opportunity to bring our expertise in building large-scale industrial plants into Zimbabwe, specifically in the fertiliser production sector,” said Huang Yaochi, the founder and chief executive officer of UCF.
A Boost for Zimbabwe’s Agriculture
The investment by UCF comes at a time when Zimbabwe is seeking to revive its agricultural sector, which was once the backbone of its economy. The sector has been battered by years of drought, land reform, policy uncertainty and poor infrastructure.
However, the government has recently launched several initiatives to support the sector, such as the Pfumvudza programme, which promotes climate-smart farming practices, and the Agriculture Recovery Plan, which aims to increase production and exports of strategic crops.
According to a report by Newsday Zimbabwe, the fertiliser deal with UCF is expected to complement these efforts and enable Zimbabwe to achieve food security and self-reliance.
The deal also aligns with the African Export-Import Bank’s (Afreximbank) Export Agriculture for Food Security initiative, which has selected Zimbabwe, along with Malawi and Chad, to grow agricultural produce for export to Egypt under a $2 billion plan to boost food production on the continent.
Zimbabwe’s Minister of Agriculture, Anxious Masuka, hailed the deal with UCF as a game-changer for the country’s farmers and consumers.
With adequate and reliable supply of fertiliser, Zimbabwe’s farmers can look forward to a brighter future, where they can produce enough food for themselves and for the nation.
