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REPORT BY THE FERTILISER LOCALISATION INTERMINISTERIAL TEAM

Brendon Anorld Malaba by Brendon Anorld Malaba
November 24, 2023
in Business, News, Post Cabinet Brief
0
UPDATE ON THE SUMMER AND WINTER CROPS MARKETING
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The Minister of Industry and Commerce, Dr S.G.G. Nyoni apprised Cabinet on the localisation of fertiliser production in Zimbabwe.

The nation is informed that 2023/24 summer crop preparedness indicates a total demand of fertilizer 1 422 500 tonnes, targeting 3 million households for strategic crops.

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It is reported that there will be a deficit of 990 317 tonnes of fertilizer for the current season.

The country is reported to have 77 483 tonnes of stock and 354 700 tonnes in Collateral Management Agreement which requires US$460 million to unlock the stocks.

Cabinet advises that the local fertilizer industry has an installed annual production capacity of more than 2 million MT of compound and blends.

The industry is currently operating at 30% and the supply gap is being covered by imports.

Cabinet reports that in order to alleviate the current shortage of fertilizer, the country will import through a variety of potential schemes; the Dorowa Shawa Hills Project; and Wonderful Group of Zambia Joint Venture with Rusunguko/Nkululeko Holdings.

The joint venture is expected to bring in 50 000 metric tonnes of Basal fertiliser and 50 000 metric tonnes of Ammonia Nitrate.

On innovative measures for local production of unique varieties of fertilizer; Cabinet advises that there is a Coal-to-Fertiliser project which is being pursued by Verify Engineering.

Sable Chemicals (Pvt) Ltd is currently exploring the option of local ammonia gas production.

The company is also exploring the production of Ammonia Gas using Natural Gas sourced from Muzarabani.

The processes will utilize the locally available coal to develop ammonia-based fertilisers, thereby fulfilling fertiliser requirements.

Furthermore, Sable Chemicals also signed a Memorandum of Understanding with Invictus Energy which will enable the company to produce 240 000 tonnes of AN fertilizer and 360 000 tonnes of Urea.

Sable is also pursuing the option of local ammonia gas production which includes the production of Green Ammonia using solar as the primary source of power.

Additionally, other innovative measures which will be used to mitigate both the increased volumes and funding requirements for fertilizers will be to use super grades of fertilizers such as Super D instead of Compound D or Urea in place of Ammonium Nitrate.

A comprehensive plan of production is underway.

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