Online Reporter
Zimpapers Writer
The Mutapa Investment Fund has budgeted US$153 million to revive companies in the fertiliser value chain within its portfolio, aiming to make the country self-sufficient in fertiliser.
This was said by MIF chief executive officer Dr John Mangudya when he appeared before the Parliament’s Portfolio Committee on Industry and Commerce yesterday.
The MIF was established in 2023 following the rebranding of the country’s Sovereign Wealth Fund and manages over 30 parastatals and State-owned Enterprises in its portfolio.
“The MIF has committed a substantial capital amount of US$153,1 million for the revival of the fertiliser value chain assets,” he said.
Dr Mangudya said they had disbursed US$5,3 million under phase one of the revival of the Dorowa Minerals phosphate plant, US$10 million to ZFC Limited, US$3 million to ZimPhos, and US$13,3 million to Sable Chemicals.
The disbursement of the funds was being done in a phased approach against project milestones and verified expenditure.
Dr Mangudya also told the committee that the refurbishment of Dorowa Minerals plant was 95 percent complete and expected to be fully operational next month, with a target production of 100,000 tonnes of phosphate concentrates.
This will translate to a production of 300,000 tonnes of basal fertiliser against an annual requirement of 450,000 tonnes.
The country requires approximately 1,4 million tonnes of fertilisers that include ammonium nitrate and single superphosphates.
On the revival of the Zimphos sulphuric acid plant, Dr Mangudya said it was dependent on the resuscitation of Dorowa as it requires a reliable supply of phosphate concentrates to be fully operational.
“The rehabilitation of the sulphuric acid plant itself requires specialised engineering expertise and equipment with long procurement lead times.
“Progress has been made in resolving mobilisation challenges and technical assessments are currently underway to determine the integrity and compatibility of sulphuric acid plant equipment valued at approximately US$4 million, which was produced in 2010,” he said.
Dr Mangudya also told the committee, which is chaired by Zaka South legislator Cde Clemence Chiduwa, that when they took over the companies in the fertiliser value chain in 2024, they identified several deficiencies that include obsolete plant and equipment, legacy debt and corporate governance issues that affected the entities’ operations.
Meanwhile, Permanent Secretary for Lands, Agriculture, Fisheries, Water and Rural Development Professor Obert Jiri, also told the committee that the country had not been spared the disruptions to international trade due to the geo-political risks as a result of the US-Israel war against Iran and the Russia-Ukraine conflict.
The two conflicts have affected the movement of goods and resulted in price increases of fuel and other commodities like fertiliser and raw materials in its production.
Zimbabwe imports some fertiliser raw materials from Russia, such as urea and ammonium nitrate, and potash and NPK blends from Belarus, while urea, liquid natural gas feedstock and sulphur come from Oman, the United Arab Emirates and Qatar.
Saudi Arabia provides urea and sulphuric acid.
Said Prof Jiri: “Zimbabwe’s fertiliser supply chain is heavily exposed to geo-political risks due to concentration in conflict-affected or transit-dependent regions.”
