REPORT ON FERTILIZER PRODUCTION LOCALISATION INTER-

MINISTERIAL TEAM MEETING: 10 NOVEMBER 2023

1.0 INTRODUCTION
1.1 The Industrial Development Department held a meeting with the Fertilizer
Production Localisation Inter-Ministerial Team on 10 November 2023 in the
13th Boardroom. The purpose of the meeting was to discuss the current state
of fertilizer production, demand and supply in the country; innovative ways
of producing unique fertilizer varieties of fertilizer for the local and export
market, innovative measures to unlock variety sources of funding and
measures to curb the current challenges affecting the fertilizer industry.

1.2 The Fertilizer Production Localisation Inter-Ministerial Team was made up

of the following;
 Ministry of Industry and Commerce (Chair)
 Office of the President and Cabinet,
 Ministry of Lands, Agriculture, Water, Fisheries, & Rural
Development,
 Ministry of Finance, Economic Development and Investment
Promotion,
 Ministry of Higher and Tertiary Education, Science and Technology
Development
 Ministry of Defence and War Veterans Association
 Zimbabwe Fertilizer Manufacturers Association (ZFMA)

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1.3 Present
 Dr. T. U. Wushe, Secretary, Industry and Commerce (Chair)
 Mr. D. Nhema, Director, Industrial Development Department
 Ms. G. Mtetwa, Deputy Director, Harare Province
 Mr. I. Kuwa, Economist, Heavy Industrial Development Department
(Minuting)
 Mr. J. T. Chamuka, Marketing Executive Officer, ZFC Ltd
 Mr. A. Kowdonis, Managing Director, Grow Agri
 Mr. W. Gopoza, Chief Executive Officer, Windmill
 Ms. S. Kockott, Logistics Officer, Damara
 Mr. A. Brown, Head of Commercial, Nutrimaster
 Mr. P. Nyakudziwanza, General Mager, Zimphos/ Chemplex
 Brigadier General D. Nyasha, Head of National Command Centre,
OPC
 Lt Col M. Chipoyi, Administrator, National Command Centre
 Ms. N. Kafesu, Marketing and Product Development Manager,
Chemplex
 Mr. N. Sigauke, Commercial Manager, Sable Chemicals
 Mr. M. Mandere, Manufacturing Projects Manager, Ferts Seed and
Grain (FSG)
 Mr. N. Matereke, Commercial and Business Development, Export
Trading Group (ETG)
 Ms. S. Chapfika, Technical Manager, ZFC Ltd
 Mr. R. F. Kaitano, Director, MLARWRD
 Mr. S. Mupodyi, Deputy Director, MLARWRD
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1.4 Absent
 Ministry of Finance, Economic Development and Investment
Promotion,
 Ministry of Higher and Tertiary Education, Science and Technology
Development
 Ministry of Defence and War Veterans Association

2.0 Presentation by Zimbabwe Fertilizer Manufacturers Association

(ZFMA)
2.1 The Association represented by Ms. N. Kafesu, highlighted that the stocks of
fertilizers range from 60 000 to 95 000 MT per week. These fertilizers
include those in Collateral Management Arrangements (CMA).
2.2 It was highlighted that, the local fertilizer producers continue to deliver
fertilizers through various channels of distribution. These channels of
distribution include Presidential Input Scheme, CBZ Agro-Yield and AFC.
2.3 Challenges Facing the Fertilizer Industry; The industry is currently faced
with the following challenges: -
i. Limited access to foreign currency: - Due to the limited availability of
local currency by companies, not enough funds have been accessed on
the foreign exchange auction trading system and production
requirements have not been met.
ii. Late Payments: - An estimated amount of about US$ 2 884 000 is still
owed to some manufacturers by the Treasury.
iii. Geopolitical Factors: - the supply of critical raw materials is greatly
threatened by the geo-political tensions in Ukraine-Russia
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 iv. Limited access for funding for stocks under CMA

3.0 Presentation by Ministry of Lands, Agriculture, Water, Fisheries, &

Rural Development (MLAWFRD)
3.1 MLAWFRD represented by the Deputy Director, Mr. S. Mupodyi,
highlighted that, the National Development Strategy 1 (NDS1) prioritized
the fertilizer value chain as a key enabler of industrial growth, as it provides
primary inputs that enhance the productivity and increased output of the
agriculture sector.
3.2 It was highlighted that, the local fertilizer industry has an installed annual
production capacity of more than 2 million MT of compounds and blends,
thus exceeding national demand of 400 000 MT. Currently, about 25% of
phosphate and 27% of AN national fertilizer requirements are produced
locally, while about 75% is imported on an annual basis to cover the deficit.
3.3 State of preparedness for 2023/24 season; The 2023/24 summer aims to
sustainably increase crop production and productivity to surpass national
requirements through a sustained increase in production and productivity.
The 2023/24 crop production aims to achieve food, feed and oil security for
the nation.
3.4 The national requirement of fertilizer for the 2023/24 summer agricultural
season to achieve 3,040,000 ha for strategic crops for the 2023/24 season is
approximately 1,422,500 Mt of fertilizer (basal fertilizer about 783,500 and
top dressing 639,000).
3.5 Current stocks of fertilizer for the 2023/24 season; The country has 77,
483 MT in stock and 354,700 MT stock are in Collateral Management
Arrangements (CMA). Approximately US$460 million is required to unlock
stocks in CMA.
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3.6 National fertilizer deficit for the 2023/24 season; The country currently
has a deficit of at least 990.317 MT of fertilizer to meet the national target
of approximately 3 million ha on strategic crops for the coming 2023/24
season.

4.0 Presentation by Sable Chemicals

4.1 Sable Chemicals has noted that, the current production capacity is 7 500 MT
of AN fertilizers per month, however, due to challenges in securing working
capital, the company has not managed to utilize this capacity and in 2023, it
estimates that it will close the production year with 20 000 MT of AN
fertilizers against 90 000MT per year.
4.2 It was highlighted that, the company, in 2021, embarked on a full plant
refurbishment project which will be completed in July 2024. Once complete,
the potential plant capacity will be 200 000MT of AN fertilizers per year i.e
monthly production of 16 000MT per month.

5.0 Innovation For The Local Production Of Unique Varieties Of

Fertilizers
5.1 The local fertilizer industry is undertaking Research and Development in the
following areas:
 Production of AN solution (liquid) used in the manufacture of mining
explosives
 Specialty fertilizers for horticulture
 Trials on the production of organic fertilizers
 Exploration for liquid fertilizers

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5.2 Current Localisation Initiatives; Zimphos has invested US$4 million in
new fertilizer granulation and blending plants for the local production of
NPK fertilizers. The blending plant has been installed and the new
granulation plant will be installed in 2024.
5.3 Sable Chemical Industries is currently refurbishing its AN plant to
potentially increase plant capacity to 200 000 MT per annum and an
estimated monthly capacity of 16 000MT. The company is also undertaking
toll manufacturing for companies in the mining industry.
5.4 Investment Required; Going forward, in order to ensure that the country is
self-sufficient in terms of basal fertilizer requirements, total of US$ 70
million is required to capacitate and modernise operations at Dorowa
Minerals and Zimphos in order to meet national basal fertilizer requirements.
5.5 For ammonium nitrate local production, Sable Chemical Industries currently
requires US$2,5 million per month to produce 7500 MT of ammonium
nitrate.

6.0 Measures To Unlock Sources Of Funding

6.1 The following are some of that can be considered to timeously unlock
funding for the procurement and production of fertilizer by the fertilizer
industry:
i. Prepayment by Government for the local production of fertilizer raw
materials of ammonium nitrate and phosphate, which can further be
purchased by secondary fertilizer producers locally to produce blends and
compounds for the various Government Schemes.
ii. Priority access to foreign currency for the fertilizer industry on the Auction
system and on the willing buyer -willing seller platform. There is also a need
to ensure that the fertilizer industry is prioritized to obtain their full required
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 quantities of foreign currency under the willing buyer -willing seller
platform, so that the fertilizer required for the agricultural season can be
purchased timeously.
iii. Enforcement of the Local Content Policy in order to ensure that least 50% of
national ammonium nitrate and phosphate requirements are sourced locally.
iv. To bring CMA in the country
v. Direct buying – making all fertlizers available for the people.

7.0 Recommendations
In order to build the local production capacity and import substitution of
ammonium nitrate and phosphate the following is recommended to Cabinet.
Short to medium term recommendations:
7.1 The continued importation of fertilisers is recommended to close the supply
gap of fertilisers that are required for the 2023/24 strategic crop targeted
hectarage.
7.2 Prioritization of foreign currency allocation to the local fertiliser producers.
7.3 Government is recommended to make timeous payments of debts owed to
fertilizer companies who have supplied fertilizer under the various
Government Schemes.
7.4 Cabinet is recommended to enforce the Local Content Policy on the local
procurement of fertilisers and to direct the Fertiliser Production Localisation
Inter-Ministerial Team to develop the threshold that will be used in 2024.

Long term recommendations:

7.5 There is need for the fertilizer industry and Tertiary Institutions to
collaborate on innovations in the production of liquid fertilisers and organic
fertilisers.
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7.6 There is need to attract more investment in the fertilizer manufacturing
industry, particularly in the primary production.

8.0 Other Comments

8.1 Due to the current deficit of approximately 990.317 MT, Cabinet recently
recommended that farmers with free funds be allowed to import fertilizer.
8.2 The Fertilizer Production Localisation Inter-Ministerial Team noted the need
for the fertilizer imported by individuals to be of the required quality, to
ensure that desire productivity yields are met and the need for measures to
prevent influx of imported fertilizer which may be then sold in the informal
market.
8.3 In this regard, it was proposed that approved large scale farmers be allowed
to import fertilizer using free funds through any fertilizer company of their
choice, which has contacts to international fertilizer suppliers and can assist
the farmer with import logistics and quality assurance compliance to the
Consignment Based Conformity Assessment (CBCA) Programme.
8.4 In order to sustain agriculture and food security, the Fertilizer Production
Localisation Inter-Ministerial Team recommends an upward review of the
current ring-fenced fertilizer quantities that may be imported as an
intervention to increase supply and in turn lower cost of production.

INDUSTRIAL DEVELOPMENT DEPARTMENT

13 November 2023