Online Reporter
ZIMBABWE stands at a crossroads.
It currently finds itself caught up in a perplexing economic paradox that undermines the very foundation of its economy.
As highlighted in our main story in the business section, on the one hand, the nation possesses an installed fertiliser production capacity of two million tonnes per year — more than double its annual national demand of 760 000 tonnes.
On the other, it haemorrhaged a staggering US$2 billion between 2018 and 2024 to import the same commodity it has the potential to produce.
To put it bluntly, this is a national security threat.
For a country whose economy is largely agricultural, relying on imports to feed its own fields is a huge indictment.
The Parliamentary Portfolio Committee on Industry and Commerce has laid bare a reality that demands immediate, high-level Government intervention.
The time for decisive, timeous action is now. At the heart of this crisis lies a broken value chain, anchored by the systemic collapse of key State-linked entities.
The paradox is most glaring at Dorowa Minerals, the sole producer of phosphate rock concentrate.
With a capacity to produce 150 000 tonnes annually, it operated at less than 5 percent utilisation in 2024 before grinding to a complete halt in April last year.
The culprits are manifold: machinery left unrepaired since 1993, misallocated rehabilitation funds and procurement irregularities that saw US$4 million spent on pumps that failed within a fortnight.
Dorowa’s failure triggers a devastating domino effect. ZimPhos, the chemical conversion hub designed to process Dorowa’s rock, has been reduced to operating at a mere 5 percent capacity, further crippled by the decommissioning of its acid plants.
This forces local blenders to import expensive finished products like monoammonium phosphate (MAP) and urea, driving up the national import bill and inflating retail prices for farmers.
The contagion spreads to Sable Chemicals, which requires US$6 million to restart ammonium nitrate production, and Windmill, operating at a fraction of its capacity.
The consequences of this neglect are tangible and painful.
This is not just about saving foreign currency; it is about ensuring food security, lowering the cost of living and taming inflation.
The urgency of resolving these challenges cannot be overstated, particularly in a world fraught with geopolitical instability. The ongoing conflict in the Gulf and the Russia-Ukraine war have exposed the fragility of global supply chains.
Zimbabwe’s reliance on imports for essential inputs like ammonia and urea leaves it dangerously exposed to external shocks.
By revitalising local production, Zimbabwe can insulate itself from these geopolitical tremors, ensuring that its agriculture sector remains productive regardless of global turmoil.
The multiplier effects of ensuring local fertiliser production are immense.
It would revive the national industrial landscape, create jobs and conserve desperately needed foreign currency.
More importantly, it would reduce the cost of food, providing relief to millions of citizens. The Government’s plan, as articulated by the Industrial Development Corporation of Zimbabwe (IDCZ) and the Mutapa Investment Fund (MIF), is viable.
The ambition to eliminate basal fertiliser imports by 2027 is commendable, but it requires an aggressive, no-holds-barred pursuit.
However, a plan alone is insufficient without the necessary capital and resolve.
The Government must address the severe liquidity shortages that have paralysed these entities.
While US$27,6 million has been disbursed, even more is still required.
This trickle-down approach is insufficient for a crisis of this magnitude.
Commercial bank lending rates of 15 to 18 percent far exceed average blending profit margins of 12 to 15 percent, making local loans unviable.
The Government must provide affordable, targeted stimulus to unlock the sector’s potential. Furthermore, the seemingly intractable and long-running disputes at G&W, which closed operations in 2021 following a land dispute, represent a Gordian knot that must be cut.
These delays cost the nation 300 000 tonnes of production capacity and must be resolved through decisive legal and political intervention.
The Government cannot afford to let red tape and legal squabbles strangle an industry so vital to national survival.
The intervention required is not just administrative; it is strategic.
It necessitates a whole-of-Government approach, led from the highest levels of the Government, to ensure that Dorowa, ZimPhos, Sable and Windmill receive the capital, governance oversight and logistical support they need.
The reliance on costly road freight due to rail failure must also be addressed to make local production cost-competitive.
While the challenges appear daunting — spanning capital shortages, obsolete plants and governance failures — there is every reason for optimism.
The Government’s commitment to localising production through a dedicated Cabinet committee signals a shift in attitude. The goal of becoming a prosperous, empowered and highly industrialised nation is within reach.
But it requires the Government to move from planning to execution.
So, Zimbabwe must act now to break the chains of import dependency and cultivate a future of self-sufficiency and prosperity.
