Online Reporter
Business Reporter
The Parliamentary Portfolio Committee on Industry and Commerce has directed Chemplex Corporation, with support from the Mutapa Investment Fund, to expedite the commissioning of the granulator at Zimbabwe Phosphate Industries (ZimPhos) to boost fertiliser self-sufficiency.
The Corporation was instructed to complete all outstanding refurbishment projects by December 31, while Treasury and key public sector debtors were urged to clear outstanding liabilities to unlock working capital for the state entity.
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 Parliamentary Portfolio Committee’s directives follow a recent visit to ZimPhos which revealed that the multi-million-dollar capital investment aimed at boosting Zimbabwe’s fertiliser self-sufficiency is lying idle.
This was after ZimPhos failed to secure installation funds, the Parliamentary investigation revealed.
The revelation comes at a time when the country’s dependence on foreign suppliers remains high, with national data showing that Zimbabwe has used over US$2 billion on fertiliser imports between 2018 and 2024.
According to a report by the Portfolio Committee on the fertiliser value chain, ZimPhos acquired a specialised granulator for US$1,7 million in 2021 to resolve a market rejection of its primary product.
ZimPhos 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.
When the Parliamentary committee visited the facility, the lawmakers discovered that the US$1,7 million machine remained completely uninstalled.
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 acid, but both of its plants were decommissioned 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 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 committee report noted, adding that the long-term goal is to satisfy domestic demand and export excess beneficiated phosphate products to the region.
