Online Reporter
Business Writer
A multi-million-dollar granulatory machine procured to boost Zimbabwe’s fertiliser self-sufficiency is reportedly lying idle and deteriorating at Zimbabwe Phosphate Industries (ZimPhos) after the company failed to secure funds for its installation.
The revelation comes at a time when the country’s dependence on foreign suppliers remains high, with national data showing that Zimbabwe has spent over US$2 billion on fertiliser imports between 2018 and 2024.
According to a report by the Parliamentary Portfolio Committee on Industry and Commerce on the fertiliser value chain, ZimPhos acquired the specialised granulator for US$1,7 million in 2021 to resolve market rejection of its primary product.
ZimPhos is owned by Chemplex Corporation, a subsidiary of the Industrial Development Corporation of Zimbabwe (IDCZ), which now falls under the Mutapa Investment Fund
The company’s general manager, Mr Phillip Nyakudziwanza, told lawmakers that local fertiliser blending companies had consistently refused to buy Single Super Phosphate (SSP) from the company because it was delivered in powder form, a format incompatible with modern production systems.
The SSP can either be sold directly as a fertiliser or further processed and blended into NPK basal fertiliser.
The 120 000-tonne-per-annum granulator was procured to convert the powder into granules, allowing ZimPhos to manufacture finished NPK fertilisers directly and cut dependence on imported raw materials like Diammonium Phosphate and Monoammonium Phosphate.
However, when the Parliamentary committee visited the facility, the lawmakers discovered that the US$1,7 million machine remained completely uninstalled and “rotting” on the factory site.
Management disclosed that the equipment has sat idle simply because the company has been unable to raise an additional US$1,3 million required for its installation.
The granulator sits alongside a separate US$1,1 million fertiliser blending plant — capable of producing 200 000 tonnes per year — which was fully installed but remains constrained by operational capital bottlenecks.
The latest revelations contrast sharply with projections made in November 2023, when Mr Nyakudziwanza expressed confidence that ZimPhos would achieve full import substitution within two years.
At the time, he said that by 2025, ZimPhos should have enough capacity to satisfy current demand before expanding into high-analysis fertilisers.
Adding to the company’s challenges is its 100 percent reliance on imported sulphuric acid.
ZimPhos previously produced its own sulphuric acid before decommissioning its plants in 2008 and 2010 after reaching the end of their useful life.
The company imports approximately 4 000 tonnes of sulphuric acid monthly from South Africa, drastically inflating production costs and pushing capacity utilisation down to a dismal 5 percent.
“The fertiliser business remains profitable, but requires utilisation levels of approximately 80 percent to fully realise economies of scale and maximise profitability,” Mr Nyakudziwanza told the committee.
Management blamed the mounting capital crisis on severe liquidity challenges, exacerbated by chronic non-payment from key customers.
At the time of the inquiry, ZimPhos was owed US$4,6 million by debtors — including US$2,3 million owed by the City of Harare — against creditor obligations of US$5,2 million.
To turn the tide, ZimPhos is banking on a broader recovery strategy that includes reviving phosphate rock mining at Dorowa, commissioning the granulator, and constructing a new US$40 million sulphuric acid plant.
“Support from the Mutapa Investment Fund is expected to play a critical role in mobilising the capital required for these projects,” the report noted, adding that the long-term goal is to satisfy domestic demand and export excess beneficiated phosphate products to the region.
In its recommendations, the Parliamentary Committee directed Chemplex Corporation, with support from the Mutapa Investment Fund, to expedite the commissioning of the granulator and complete all outstanding refurbishment projects by December 31, 2026.
Treasury and key public sector debtors were also urged to clear outstanding liabilities to unlock working capital for the state entity.
