Online Reporter
Business Reporter
THE Government must urgently expedite outstanding payments owed to fertiliser manufacturers to restore working capital across the local supply chain, a parliamentary report has recommended.
The Parliamentary Portfolio Committee on Industry and Commerce said in its recent report that delayed disbursements are straining the operations of manufacturers of key fertilisers, but did not state how much the Government owes.
The Government remains the primary buyer of agricultural inputs, supporting millions of smallholder farmers through State -funded schemes such as the Presidential Inputs Scheme and Pfumvudza/Intwasa.
“Delayed settlements, outstanding Treasury Bills, legacy debts and payment defaults continue to constrain working capital and increase financial risks throughout the fertiliser chain,” said the report.
To address these challenges, the committee urged the Treasury to clear its debts to fertiliser producers immediately to enable the companies to procure raw materials and prepare for the upcoming season.
“The Ministry of Finance, Economic Development and Investment Promotion should expedite the settlement of outstanding obligations and establish mechanisms to ensure timely payment to suppliers,” said the report.
The committee said resolving payment delays and structural bottlenecks will reduce the national import bill, guarantee timely input deliveries for government farming programs, and lower retail prices for farmers.
The committee highlighted that Zimbabwe spent over US$2 billion importing fertiliser between 2018 and 2024 despite possessing an installed domestic capacity of about two million tonnes per year.
According to the report, the current national annual demand for fertilisers is about 780 000 tonnes, meaning domestic plants hold sufficient capacity to satisfy national requirements.
Major State-linked entities — including Chemplex Corporation subsidiaries Dorowa Minerals, ZimPhos, G&W Industrial Minerals and Sable Chemicals —are operating far below capacity or lie dormant due to aging infrastructure and liquidity constraints.
Private sector processors such as Windmill, Omnia, NuFert, and ETG also face severe operational hurdles due to a heavy reliance on imported raw materials, including potash and ammonia.
The report also cited high transport costs stemming from a degraded rail network, import duties on key micronutrients, complex licensing regulations and weak corporate governance as critical barriers to production.
It called for accelerating the rehabilitation of upstream state entities using funds committed by the Mutapa Investment Fund, enforcing local procurement policies for State input schemes, and fast-tracking rail infrastructure repairs to lower freight costs.
