Parly urges support for local fertiliser industry

Farirai Machivenyika

Senior Reporter

THE Parliamentary Portfolio Committee on Industry and Commerce has urged Government to procure locally-produced fertiliser for its programmes and organise long-term funding facilities as part of measures to grow the sector.

The committee said this in a report tabled in the National Assembly yesterday by its chairman, Cde Clemence Chiduwa, following its inquiry into the fertiliser value chain between March and April this year.

According to the report, the country spent over US$2 billion on fertiliser imports between 2018 and 2024 despite having raw materials needed for the production of fertilisers and installed industrial capacity to meet the country’s demand.

According to statistics from the Ministry of Industry and Commerce, Zimbabwe’s fertiliser industry has an installed annual capacity of 2 million tonnes of basal fertiliser, far exceeding the national demand of about 400 000 tonnes and 380 000 tonnes of top-dressing fertiliser.

“The Ministry of Industry and Commerce, working with the Ministry of Agriculture, Mechanisation and Water Development, should implement local procurement and import substitution measures to increase utilisation of domestic fertiliser production capacity by December 31, 2026.

“The Committee observed that high energy tariffs, expensive transport costs, reliance on imported inputs and limited access to affordable financing continue to erode the competitiveness and growth of the fertiliser manufacturing industry.

“The Ministry of Finance, Economic Development and Investment Promotion, together with the Reserve Bank of Zimbabwe, should establish affordable long-term financing facilities and sector-specific support measures for fertiliser manufacturers by December 31, 2026,” reads part of the report.

The Committee also noted that poor rail infrastructure, port inefficiencies and excessive dependence on road transport continue to disrupt fertiliser supply chains and significantly increase production costs and urged the Ministry of Transport and Infrastructural Development to prioritise the rehabilitation of rail infrastructure and improve efficiency along key logistics corridors.

“The Committee observed that regulatory bottlenecks, delays in licensing, duties on essential micro-nutrients and policy uncertainty continue to increase compliance costs and discourage investment in the fertiliser sector.

“The Ministry of Industry and Commerce, in collaboration with the Ministry of Finance, Economic Development and Investment Promotion, should review the regulatory framework, streamline licensing processes and remove duties on critical fertiliser inputs by December  31, 2026,” the report further reads.

The Committee concluded that the challenges facing the industry stemmed not from a lack of resources or industrial capacity, but from systemic challenges including dormant State-linked production facilities, inadequate capitalisation, weak corporate governance, ageing infrastructure, procurement inefficiencies, unreliable rail transport, and liquidity constraints across the value chain.

“These factors have undermined domestic production, increased dependence on imported raw materials, and weakened national food security.

“The Committee, therefore, emphasises that reviving upstream production, settling outstanding public sector debts, rehabilitating critical transport infrastructure, and strengthening coordination across the fertiliser value chain are urgent priorities to unlock existing capacity, reduce import dependence, and achieve Zimbabwe’s industrialisation and food security objectives.”

In its inquiry, the committee conducted on-site visits to G & W Industries, Dorowa Resources, Zimbabwe Phosphate Industries (ZimPhos), Sable Chemicals and ZFC to inspect their infrastructure and get a view of their operations, while in the private sector, they visited NutriFert, Omnia Fertilisers, Origin, Zimplatd SuperFert, Windmill and ETG.