Zimbabwe pushes US$500m coal-to-fertiliser investment drive

The Government is advancing plans to inject about US$500 million into coal-to-fertiliser production as part of efforts to strengthen local supply, reduce import dependence and shield the economy from external shocks.

According to the Ministry of Industry and Commerce, discussions are at an advanced stage between officials and Chinese investors Sunny Yi Feng and Wintrue Holdings regarding the establishment of a fertiliser manufacturing plant in Norton.

The proposed project would see the two firms collaborate on developing a coal-based fertiliser production facility aimed at boosting domestic output and supporting the agricultural sector.

Sunny Yi Feng Tiles Zimbabwe, already operating in Norton as a manufacturer of ceramic and porcelain tiles, tableware and roofing materials, is expected to partner with Wintrue Holdings, a Chinese fertiliser producer, in the new venture.

Officials say the investment is estimated at US$500 million and could significantly transform Zimbabwe's fertiliser landscape.

"The partnership between these investors stands ready to help Zimbabwe bridge the domestic production gap," the ministry said, adding that site visits to Wintrue Holdings' facilities in China have already been conducted.

Permanent Secretary for Industry and Commerce Thomas Utete Wushe said the initiative could position Zimbabwe as a self-sufficient fertiliser producer by 2030.

"This investment will enable Zimbabwe to become self-sufficient in fertiliser production by 2030, producing over 300 000 tonnes of urea annually," he said.

Agriculture remains a key pillar of the economy, contributing between 12 and 16 percent of GDP, and authorities say boosting local fertiliser production will help stabilise input costs and improve supply to farmers.

Parliamentary Portfolio Committee on Industry and Commerce chairperson Clemence Chiduwa said national fertiliser demand stands at about 780 000 tonnes annually, warning that domestic capacity remains underutilised.

He noted that local producer Windmill Private Limited is currently operating at just 10 percent capacity, well below potential output.

To support the sector, the Mutapa Investment Fund has reportedly injected US$153 million into fertiliser-related value chains.

Officials say the drive to localise production has been accelerated by global supply disruptions linked to geopolitical tensions, including the Russia-Ukraine war and instability in the Middle East, which have pushed up fertiliser and input costs.

Zimbabwe currently imports key inputs such as urea and ammonium nitrate from Russia, potash from Belarus, and liquefied natural gas feedstock from Gulf states including Oman, the UAE and Qatar.

Authorities say the coal-to-fertiliser project, alongside public investment support, is expected to reduce import bills, stabilise supply and strengthen national food security.