Business Reporter
Fertiliser prices could significantly drop if manufacturers restore dilapidated primary production facilities and supply chain infrastructure.
This is according to a report by the Parliamentary Portfolio Committee on Industry and Commerce, following briefings by several blenders and manufacturers.
The fertiliser companies gave detailed accounts of possible reductions in fertiliser prices if primary raw material production is restored and operational bottlenecks are resolved.
Zimbabwe Fertiliser Company (ZFC) management, led by Dr Richard Dafana, informed the committee that fertiliser prices of US$15 to US$20 per 50kg bag of top dressing were achievable if the domestic value chain operated efficiently.
Dr Dafana emphasised that reaching the price point depends on continuous production at primary entities such as Dorowa Minerals, ZimPhos and Sable Chemicals, supported by rail infrastructure and adequate working capital to lower unit costs through economies of scale.
Management at ETG fertiliser also reported that under stable operating conditions and increased local sourcing of raw materials, the company could supply a 50kg bag of basal fertiliser at between US$25 and US$27.
At an average cost of between US$48 and US$55 per 50 kg bag for top dressing, elevated fertiliser prices place a heavy financial burden on domestic farmers.
This price starkly contrasts with regional averages in Zambia (US$30–US$35) and South Africa (US$35–US$40.
According to a report, Zimbabwe spent US$2,11 billion on fertiliser imports between 2018 and 2024.
The massive import drain continues despite the country having an annual domestic processing capacity of two million tonnes against a national demand of 780 000 tonnes.
Blending accounts for 1,6 million tonnes of the total two million tonnes of installed local capacity.
The high price of fertiliser remains the single largest input burden for Zimbabwean farmers, who currently pay some of the highest rates in the region due to the total shutdown or severe underperformance of State-owned primary production facilities.
Agriculture is the absolute backbone of Zimbabwe’s economy, functioning as the primary engine for rural livelihoods, industrial supply, and macroeconomic stability.
While its direct contribution to the national Gross Domestic Product (GDP) fluctuates between 11-15 percent depending on annual rainfall patterns, its strategic impact ripples across almost every other economic sector.
“Plunging fertiliser costs down to US$15–$30 per bag would be a game-changer for production yields across smallholder and commercial farming,” said Enoc Musara, a local development economist.
“The primary constraint has never been blending capacity, but the persistent failure to fund primary raw material processing at home.”
The committee was advised that urea currently costs about US$45 per bag (US$900 per tonne), but ramping up local production of sulphuric acid and phosphate inputs would significantly reduce landed costs and import dependence.
The report detailed how the widespread collapse of primary production infrastructure has forced local blenders to rely on expensive imported raw materials.
G & W Industrial Minerals operations were halted in April 2023 following a land ownership dispute over claim block 37311 in Rushinga.
This ended domestic agricultural lime production, which had previously slashed local prices from US$150 to US$75 per tonne.
Dorowa Minerals, the phosphate rock producer, suspended operations in April 2025 due to dilapidated infrastructure, operating at just 20 percent capacity.
Zimbabwe Phosphate Industries (ZimPhos) is currently operating its conversion hub at only 5 percent capacity.
Although the company possesses a US$1,7 million granulator, the equipment remains idle due to a US$1,3 million shortfall in installation funding, which forces the firm to import sulphuric acid from South Africa each month.
Meanwhile, Sable Chemical, the country’s sole manufacturer of ammonium nitrate, suspended production in 2022 because of working capital constraints. It requires US$3 million capital injection to restart its 140 000-tonne annual capacity.
While primary producers remain stalled, private blenders and processors report operating at a fraction of their installed capacity due to severe logistical and financial hurdles.
Windmill Fertilizers, represented by Mr Charamba, was operating at about 10 percent capacity utilisation at the time of the parliamentary inquiry, and producing about 2 800 tonnes against a 50 percent break-even threshold.
Although the company holds an installed capacity of 32 000 tonnes — which includes a modern 1 000-tonne-per-day blending plant commissioned at Mt Hampden in 2024 —production remains severely constrained by foreign currency shortages, low automation of 15 to 20 percent, high electricity tariffs, and a decade-long absence of rail services.
Omnia Fertiliser Zimbabwe is operating at 33 percent capacity utilisation, producing between 80 000 and 90 000 tonnes annually, according to production manager Mr Maisva.
Because Omnia relies entirely on imported primary inputs, local borrowing costs of 15 to 18 percent exceed its operating margins of 12 to 15 percent, while the decline of rail services from Beira has forced a heavy reliance on expensive road haulage.
NuFert is currently producing around 6 500 tonnes annually against an installed capacity of 40 000 tonnes, according to managing director Mr Anton Brown.
NuFert told the committee that it was facing a four-month financing gap caused by upfront import payments, long delivery lead times and delayed revenue realisation, highlighting that reviving local suppliers like Sable Chemicals is essential to lowering market prices.
The Parliamentary Committee concluded that fertiliser production is a year-round industrial process.
Achieving stability requires sustained capital investment, rail network rehabilitation and direct raw material support rather than short-term financing interventions.
