Zimbabwe's US$2bn fertiliser bill raises eyebrows

ZIMBABWE spent approximately US$2.11 billion on fertiliser imports between 2018 and 2024 despite having installed production capacity capable of supplying more than twice the country's annual requirements, a parliamentary inquiry has revealed.

The findings are contained in a report by Parliament's Portfolio Committee on Industry and Commerce on the fertiliser value chain, which was tabled in Parliament last week.

According to the report, Zimbabwe has installed annual production capacity of about two million metric tonnes of basal fertiliser, against national demand estimated at about 400 000 tonnes of basal fertiliser and 380 000 tonnes of top-dressing fertiliser.

The committee said the continued reliance on imports represented a major structural weakness in the country's fertiliser industry, particularly given the existence of domestic production infrastructure and raw materials.

"Data from both the Ministry of Industry and Commerce and UN Comtrade 2025 show that between 2018 and 2024, the country spent approximately US$2.11 billion on fertiliser imports," the committee said.

"This substantial import bill is both unsustainable and difficult to justify for a nation endowed with key raw materials and existing production infrastructure."

The country's installed capacity comprises approximately 400 000 tonnes of granulation capacity and 1.6 million tonnes of blending capacity.

The committee said the central problem was therefore not a lack of infrastructure, but a combination of structural and operational challenges that have left manufacturers operating significantly below their potential.

"Zimbabwe's fertiliser industry is characterised by a significant structural contradiction," the report said.

"Despite having an installed production capacity of approximately two million metric tonnes per year, far exceeding national demand of about 780,000 metric tonnes, the country has continued to spend over US$2 billion on fertiliser imports in less than a decade."

Zimbabwe's fertiliser industry was once among the most integrated in Southern Africa, with state-linked companies such as Sable Chemicals in Kwekwe playing a major role in supplying farmers locally and across the region.

However, years of undercapitalisation, ageing equipment and governance challenges at state-linked entities have progressively weakened the sector.

The committee identified dormant state-linked production facilities, inadequate capitalisation, weak corporate governance, ageing infrastructure, procurement inefficiencies, unreliable rail transport and liquidity constraints as some of the major factors affecting the fertiliser value chain.

"These factors have undermined domestic production, increased dependence on imported raw materials and weakened national food security," the committee said.

The inquiry also found that Zimbabwe remained heavily dependent on imported raw materials because local value chains for phosphate, agricultural lime and sulphuric acid were underdeveloped.

The committee warned that reliance on imported inputs increased production costs while exposing manufacturers to foreign currency and supply-chain risks, undermining efforts to promote import substitution.

Fertiliser manufacturers are consequently operating well below their installed capacity despite having infrastructure capable of meeting a substantial proportion of national demand.

The committee described the underutilisation as a missed opportunity to increase domestic production and reduce the country's import bill.

High electricity tariffs, expensive transport, dependence on imported inputs and limited access to affordable financing were also identified as major constraints on the competitiveness of local manufacturers.

The sector has also been affected by Zimbabwe's broader economic challenges, including foreign currency shortages that make it difficult for manufacturers to secure critical raw materials, as well as power outages that disrupt production schedules.

The deterioration of the country's rail network has compounded the problem. Rail was once an important means of transporting bulk fertiliser and raw materials, but manufacturers have increasingly had to rely on more expensive road transport.

The committee said Zimbabwe's continued dependence on imported fertiliser was particularly concerning given the country's mineral resource base.

The country has substantial deposits of phosphate rock, particularly at Dorowa Mine in Manicaland, as well as limestone and other inputs required for fertiliser production. However, the committee noted that the complete value chain, from mining and processing to the manufacture of finished fertiliser, remained underdeveloped.

The high cost of imported fertiliser has also placed pressure on smallholder farmers, who produce much of the country's staple crops.

A 2024 Food and Agriculture Organisation report noted that fertiliser prices in Zimbabwe had risen sharply, making the input increasingly unaffordable for many communal farmers.

To address the problem, the parliamentary committee recommended that the Mutapa Investment Fund, in collaboration with the Ministry of Industry and Commerce, accelerate the revival and integration of local fertiliser raw-material industries.

The committee set December 31, 2026 as the target for the intervention, which it said should help reduce import dependence and lower production costs.

It also recommended incentives for investment in fertiliser granulation and downstream value addition, while calling for locally value-added fertilisers to be prioritised in Government procurement programmes.

The committee said unlocking Zimbabwe's existing production capacity would not only reduce the country's reliance on imports but could also strengthen the domestic fertiliser industry, improve agricultural productivity and contribute to national food security.