Zimbabwe moves to cut fertiliser costs

Published: 8 hours ago

Zimbabwe is accelerating plans to cut its reliance on imported fertiliser through three major coal-to-fertiliser projects worth more than US$1 billion, which the government says could make the country self-sufficient by 2030.

Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said the projects are being fast-tracked in response to a sharp 30–40% increase in fertiliser prices that has placed pressure on farmers and food production.

Speaking at the 66th Zimbabwe International Trade Fair, Ncube said government is currently working with three major investors developing integrated fertiliser production facilities based on Zimbabwe's coal resources.

One of the largest projects is in Norton, led by Chinese-linked firms Sunny Yi Feng Tiles Zimbabwe and Wintrue Holdings, with an estimated investment of around US$500 million. The plant is expected to produce over 300,000 tonnes of urea annually, significantly narrowing Zimbabwe's fertiliser deficit.

A second project in the Palm River area under Xintai, valued at about US$200 million, will produce both urea and ammonium nitrate, with construction expected to begin in 2026 and production targeted for 2027. The project will also generate its own electricity and use gas emissions as part of an integrated industrial model.

The third investment in Hwange is also centred on coal-based fertiliser production and forms part of broader industrial development in the coal-rich region.

In addition, government has approved a separate US$400 million fertiliser plant in Chiredzi and a larger US$5.2 billion coal beneficiation project that includes fertiliser, liquid fuels and chemicals.

Officials say the strategy is based on coal gasification technology, which converts coal into gas used to produce ammonia and ultimately urea fertiliser through established chemical processes such as the Haber-Bosch method.

Ncube said government is supporting the projects through incentives such as Special Economic Zone status, tax benefits and eased regulatory requirements to speed up implementation.

Alongside coal-based fertiliser, Zimbabwe is also reviving its phosphate industry, including refurbishment of the Dorowa mine, which is expected to help boost domestic production of basal fertiliser.

The government says the combined investments aim to reduce fertiliser imports, which cost the country over US$300 million in 2024, and strengthen long-term food security through local production.
- miningzimbabwe

Tags: Fertilizer,