ZAMBIA – Nitrogen Chemicals of Zambia (NCZ) has revealed ambitious expansion strategy, plans to construct a state-of-the-art fertiliser blending plant to enhance the production capabilities and facilitate the creation of a diverse range of blended fertiliser products in Zambia.
With a total cost of US$6 million, this new project is scheduled to start during the first quarter of 2024.
The ambitious plans were revealed by Simon Mwape, the technical director of the company on December 22.
According to Mwape, the factory will occupy an area of 0.5 hectares. Once operational, it should be able to supply 400 tonnes of fertilizer per day.
He noted that this investment should allow the NCZ, which already has a factory manufacturing 35 tonnes of simple fertilizer per day in Kafue district, to strengthen its production capacity.
“The increase in population and agricultural activities in Zambia has led to a high demand for fertilizer, hence the need to increase production and meet current market demand.”
Founded in 1969, Nitrogen Chemicals of Zambia is controlled by the state through the Industrial Development Corporation (IDC) conglomerate.
This bold move is indicative of NCZ’s dedication to expanding its operations and potentially increasing its market share.
Zambia has been importing its bulk fertilizer to meet its growing land under cultivation. However, prices of the essential commodity had escalated following the depreciation of the local currency, contributing to skyrocketing food prices.
According to World Bank data dating from 2021, Zambia consumes between 300,000 and 400,000 tonnes of fertilizer per year. In the country, the volume of fertilizer used per hectare of arable land amounts to 63.9 kg, almost three times more than the average level in sub-Saharan Africa (22.6 kg).
Following that the county has one of the highest levels of fertilizer use in sub-Saharan Africa, as demand for the input continues to grow, operators in the sector are investing more to increase their production.
In May last year, Zambian President, Hakainde Hichilema has officiated the construction of a US$600 million Urea and ammonia plant at the United Capital Fertilizer Zambia Company Limited in Lusaka’s Chilanga district.
The investment was envisioned to have a production capacity of 480,000 tonnes of fertilizer per year, primarily 300,000 tonnes of urea, and 180 000 tons of ammonium aimed to cut the importation of fertilizer in the country and lower cost of agricultural production.
The officials are optimistic that local fertilizer production would help the country stop the importation of fertilizer and cut local cut prices by 40%.
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