$340 Million Phosphate Plant to Drive Zambia’s Industrial and Agricultural Expansion

... Chipoka says The plant will focus on high-quality phosphate-based products for local and regional markets

By Francis Maingaila ♥️

Chilanga, Zambia – (24-01-2025) - The Sino Great Chemical Company Limited, in partnership with Zambia’s Wonderful Group, on Friday officially launched the groundbreaking ceremony for a $340 million integrated phosphate, industrial, and agricultural products facility in Chilanga.

The ceremony, held on Friday was graced by Jin Jun, the Commercial Counselor of the Chinese Embassy in Zambia, representing Chinese Ambassador H.E. Mr. Han Jing.

The project, aimed at enhancing Zambia’s industrial and agricultural sectors, marks the start of Phase 1 of a two-phase investment.

Mr. Shashank Mehta, representing Sino Great Chemical's board chairperson Mr. Zhang Quan, explained that the project represents more than just construction; it is an opportunity to unlock Zambia’s vast natural resources through local value addition.

The facility will focus on producing high-quality industrial and agricultural products such as phosphoric acid, mono ammonium phosphate (MAP), and gypsum.

“This investment will create 1,600 direct jobs upon the completion of Phase 1, along with 10,500 indirect jobs across Zambia,” Mehta stated.

The construction phase will also create 2,000 temporary jobs. The first phase includes building a state-of-the-art phosphoric acid production facility in Chilanga and developing a phosphate mine in Eastern Province.

The mine’s operations are expected to begin later this year, contributing to the country’s industrial capacity.

The project aligns with Zambia’s vision of sustainable resource utilization and local content enhancement. It also supports the government’s efforts to reduce dependency on imported fertilizers by producing phosphate-based products locally.

The facility will feature a 40-megawatt power plant to ensure energy self-sufficiency.

Phase 2, planned for completion in 2026, willà require an additional $400 million investment, expanding production capacity and adding new fertilizer products.

The long-term goal of the partnership is to invest $1 billion in Zambia’s economy over the next seven years, including investments in electricity production.

The project is expected to significantly contribute to Zambia’s economic development by generating export revenues, creating jobs, and supporting the agricultural sector.

The facility will also contribute to the national grid, ensuring sustainable energy for future operations.

Chipoka Mulenga, Minister of Commerce, Trade, and Industry on behalf of President Hakainde Hichilema, said the construction of an integrated phosphate beneficiation plant, a project poised to enhance agricultural productivity and drive industrial growth, is a significant step in the country’s journey toward self-reliance in fertilizer production.

Minister Mulenga praised the investment by the Wonderful Group of Companies in partnership with Sino Great Chemical Company, highlighting its potential to reduce dependency on fertilizer imports and boost the agricultural sector.

"This project reflects Zambia’s commitment to industrialization, job creation, and regional economic integration," Mulenga said.

The plant will process locally mined phosphate, helping reduce fertilizer costs from as high as K1,500 to a current range of K800–K850.

The facility is also expected to export fertilizer to regional markets, including Tanzania, the Democratic Republic of Congo (DRC), and Malawi.

 Additionally, the Wonderful Group is building an 85-megawatt power plant to support the facility.

Of this capacity, 40 megawatts will be used by the plant, while the remaining 45 megawatts will supply electricity to over 1,000 households, contributing to Zambia's energy infrastructure.

Mulenga emphasized Zambia’s strengthening ties with China, noting the phosphate project and the planned electric vehicle battery plant as outcomes of President Hichilema’s recent diplomatic efforts.

He also pointed to the government’s $6 million investment in Nitrogen Chemicals of Zambia, which has revitalized fertilizer production and created 150 jobs.

The phosphate plant aligns with Zambia’s economic diversification strategy, focusing on manufacturing, agriculture, and mining.

Mulenga urged financial institutions and investors to continue supporting local industries, highlighting the importance of reducing production costs and increasing exports to stabilize the economy.

According to the minister, the plant’s construction underscores Zambia’s ambitions to lead value-added production in the region, bolstered by strategic partnerships and investments that promise a brighter economic future.

Speaking at the event, Jin Jun emphasized the project’s potential to transform Zambia’s agricultural sector and economy.

"The construction of this plant underscores Zambia's strides toward value addition and economic modernization," he stated, highlighting the mutual benefits this venture brings to both countries.

Currently, Zambia imports a substantial amount of fertilizer to meet its agricultural demands.

In 2023 alone, the country spent nearly $700 million on fertilizer imports, according to data from the United Nations Comtrade Database.

Jin Jun revealed that once operational, the new plant will produce 300,000 tons of fertilizer annually, significantly reducing Zambia’s dependence on imports.

The project will also support neighboring countries, boosting regional trade.

The Great Chemical Company, which is spearheading the project, is committed to local employment and skills development.

The company plans to provide specialized training for Zambian workers, creating job opportunities and improving local livelihoods.

“The initiative will not only foster economic growth but also directly improve the lives of Zambians by empowering them with valuable skills and stable employment,” Jin Jun noted.

The fertilizer plant is a testament to the strong ties between China and Zambia.

Zambia was one of the first African nations to establish diplomatic relations with China, and the two countries recently celebrated the 60th anniversary of Zambia’s independence and the 70th anniversary of their diplomatic relationship.

Jin Jun highlighted the growth in trade and investment between the two nations. In 2024, trade between China and Zambia reached $4.3 billion, while Chinese companies created 32,000 jobs in Zambia.

The completion of the fertilizer plant is expected to align with the objectives of the Forum on China-Africa Cooperation (FOCAC).

The initiative falls under the ten partnership actions agreed upon by President Hakainde Hichilema and his Chinese counterpart, aimed at fostering economic growth and modernizing African economies.

“This project exemplifies the fruitful collaboration between our two nations and paves the way for future opportunities,” Jin Jun said, adding that it underscores China’s commitment to supporting Zambia’s industrialization.

Wuhuan Engineering Co. Ltd, a global leader in engineering and infrastructure development, committed to advancing Zambia’s energy and chemical industries through a major new project.

The initiative aims to enhance the country’s infrastructure and create long-term value for local communities.

Mr. Jinlin Pi, Project Manager at Wuhuan Engineering, emphasized the project's potential to drive growth and create job opportunities in Zambia.

"We are committed to providing opportunities that benefit families and communities. This project is about fostering hope and ensuring long-term sustainability,” he said.

The project will have a significant impact on Zambia’s energy sector and will support the development of the copper and phosphate industries.

By partnering with key technical solution providers and EPC (Engineering, Procurement, and Construction) contractors, Wuhuan Engineering Co. Ltd aims to modernize critical infrastructure and contribute to the country’s economic growth.

The initiative will use high-concentration compounds, ensuring top-tier performance while adhering to environmental and operational standards.

Sustainability is a key focus, with Wuhuan Engineering working closely with international bodies like the World Bank to create job opportunities for local communities and protect the environment.

"We prioritize both environmental protection and workforce empowerment, ensuring that the local population benefits from this project," Pi added.

With over 70 years of expertise, Wuhuan Engineering Co. Ltd has a proven track record of delivering high-impact infrastructure projects worldwide.

The Zambia phosphate and energy project is a key example of the company’s global commitment to sustainable development. This project marks an important step in Zambia’s growth, with Wuhuan Engineering playing a vital role in shaping the country’s future.

Speaking earlier, Acting Permanent Secretary Alex Chipo Mapushi, representing Hon. Sheal Mulyata, MP, described the move as a groundbreaking step for Zambia's industrial and agricultural sectors.

The event marked the start of construction for a new agricultural and industrial plant aimed at boosting the country’s productivity and economic growth.

It was attended by government officials, senior civic leaders, and various stakeholders. Mapushi emphasized that the plant would enhance local industries and agriculture through the production of high-quality processed products.

He highlighted that the project aligns with Zambia’s development goals, particularly the 8th National Development Plan, by focusing on value addition to maximize the potential of natural resources, reduce waste, and foster economic growth.

“The plant will reduce Zambia’s dependence on imports and strengthen local industries by processing raw materials locally. This will create more value within our economy, empowering farmers and stimulating growth,” Mapushi said.

The plant is also expected to generate job opportunities for the local community and will operate under environmentally responsible practices, adhering to global standards for sustainability.

This project marks a significant step towards Zambia's long-term development, reflecting the government’s commitment to innovation, sustainability, and economic transformation.