US$153m boost for Zimbabwe fertiliser industry revival

The Mutapa Investment Fund (MIF) has set aside US$153 million to revive companies in Zimbabwe's fertiliser value chain, as part of efforts to achieve national self-sufficiency.

Chief executive John Mangudya revealed the investment while appearing before Parliament's Portfolio Committee on Industry and Commerce in Mt Hampden on Tuesday.

Mangudya said the funds would be disbursed in phases, tied to project milestones and verified expenditure, with several key entities already receiving initial injections.

"The MIF has committed a substantial capital amount of US$153,1 million for the revival of the fertiliser value chain assets," he said.

So far, US$5.3 million has been released for the rehabilitation of the Dorowa Minerals phosphate plant, while ZFC Limited received US$10 million, ZimPhos US$3 million, and Sable Chemicals US$13.3 million.

Mangudya said refurbishment of the Dorowa plant is now 95 percent complete and expected to be fully operational next month, targeting annual production of 100,000 tonnes of phosphate concentrates. This output is projected to support the production of 300,000 tonnes of basal fertiliser, against a national requirement of about 450,000 tonnes.

Zimbabwe's overall fertiliser demand stands at roughly 1.4 million tonnes per year, including ammonium nitrate and single superphosphates.

He added that revival of the ZimPhos sulphuric acid plant is dependent on the successful restart of Dorowa, as it requires consistent phosphate feedstock. Technical assessments are currently underway to evaluate equipment valued at approximately US$4 million, amid challenges related to specialised engineering requirements and long procurement timelines.

Mangudya noted that when MIF assumed control of fertiliser-linked entities in 2024, it encountered significant operational constraints, including outdated machinery, legacy debt and corporate governance issues.

Meanwhile, Permanent Secretary in the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development, Obert Jiri, warned that Zimbabwe's fertiliser supply chain remains vulnerable to global geopolitical tensions.

He told the committee, chaired by legislator Clemence Chiduwa, that conflicts such as the Russia-Ukraine war and tensions involving the United States, Israel and Iran have disrupted international trade, driving up the cost of fuel, fertiliser inputs and raw materials.

Zimbabwe relies on imports of key fertiliser inputs, including urea and ammonium nitrate from Russia, potash and NPK blends from Belarus, as well as supplies from Oman, the United Arab Emirates, Qatar and Saudi Arabia.

"Zimbabwe's fertiliser supply chain is heavily exposed to geo-political risks due to concentration in conflict-affected or transit-dependent regions," Jiri said.

The Government hopes that the revitalisation of local production capacity under MIF will reduce reliance on imports, stabilise input costs and strengthen agricultural productivity in the long term.