Zambia close to Fertilizer Independence

As United Capital Fertilizers Commissions Ammonia and Urea Plant Test Run

By Francis Maingaila 

Lusaka, Zambia – (August 12, 2025) – Zambia is on the verge of achieving complete self-sufficiency in fertilizer production, following the commissioning of the test run for United Capital Fertilizers’ new ammonia and urea plant — a facility expected to transform the country’s agricultural capacity and strengthen its position as a regional food supplier.

The ceremony, held Tuesday at the company’s state-of-the-art plant, drew senior government officials, industry leaders, and representatives from the media. 

Deputy Secretary to the Cabinet Siakalenga Siazonga officiated, hailing the development as a critical step in Zambia’s industrialisation agenda.

“This is industrialisation at the highest level,” Siakazonga said. “By December 2025, when this plant is fully commissioned, Zambia will no longer spend hundreds of millions of dollars annually importing fertilizers. This investment will enhance our competitiveness in agriculture, create thousands of jobs, and stimulate socio-economic growth.”

$600 Million Investment to Secure Zambia’s Fertilizer Supply

United Capital Fertilizers, a subsidiary of the Wonderful Group of Companies, has invested approximately US$600 million into the project, which is designed to produce 108,000 metric tons of ammonia and 100,000 metric tons of urea annually. The production capacity will meet Zambia’s domestic demand while generating surplus for export to regional markets.

Board Chairperson Chance Kabaghe told attendees that the three-week test run will be used to identify and correct any operational issues before full production begins.

“We cannot afford even the smallest hitch,” Kabaghe said. 

“This plant will ensure that Zambia is no longer dependent on imports for fertilizer. We already produce D-Compound locally, not only for ourselves but also for the region. Now, with urea production in place, there will be nothing stopping us from being a major agricultural producer and exporter.”

Drawing on his experience as former Minister of Agriculture and Chief Executive of the Food Reserve Agency, Kabaghe reflected on the challenges Zambia has faced with imported fertilizer — from compromised quality to delivery delays and high costs.

“Those days are coming to an end,” he said. “The timeliness, quality, and adequacy of supply will no longer be a problem.”

From Groundbreaking to Test Run in Record Time

Kabaghe commended the construction teams from China and Zambia for completing the project in just two years, a process he said could have taken up to five years under normal circumstances. 

“This is an outstanding achievement. Very well done,” he told the teams.

He also thanked the press for attending on short notice, noting the importance of documenting “this historic moment for the company, the country, and the region.”

Regional Impact Already Taking Shape

Siakazonga disclosed that the company has already exported substantial quantities of fertilizer to Tanzania, Malawi, Zimbabwe, Botswana, and the Democratic Republic of the Congo. 

While he withheld specific figures, he encouraged journalists to confirm the export numbers with management before publishing their stories.

“Three years ago, Zambia spent around US$450 million annually importing fertilizers,” he said. 

“That is money that left the country. This will now be a thing of the past, and the stability of the kwacha this year is partly because we are no longer importing D-Compound fertilizer.”

Chinese Partnership Key to Project Delivery

Wang Jiayi, Vice President of Wuhuan Engineering — the Chinese company contracted to construct the plant — said the project is a result of close cooperation between Zambian and Chinese teams.

“This commissioning marks a major milestone,” Wang said. 

“It will not only meet Zambia’s domestic fertilizer needs but also create thousands of jobs for local people, transfer advanced skills, and strengthen Zambia’s capacity in agricultural inputs.”

He added that Wuhuan, with 67 years of engineering experience and over 3,000 completed projects worldwide, will provide comprehensive training to local technicians to ensure the plant operates efficiently and independently.

Supporting National Food Security Goals

The plant is expected to directly support President Hakainde Hichilema’s ambitious agricultural targets — 10 million metric tons of maize, 1 million metric tons of wheat, and 1 million metric tons of beans annually by 2027.

“With both D-Compound and urea now being produced locally, Zambia will be in a position to not only meet its food needs but also become a significant exporter within the region,” Kabaghe said.

Siakazonga echoed this sentiment, calling the investment “a pillar for Zambia’s export-led industrialisation” and “a strategic contribution to food security across Southern Africa.”

Background:

United Capital Fertilizers already operates one of the largest D-Compound production facilities in the region. 

The addition of the ammonia and urea plant closes the supply gap for top-dressing fertilizer, further reducing dependence on imports and insulating the agricultural sector from global supply chain disruptions.

The plant’s full commissioning in December 2025 is expected to mark the point at which Zambia becomes fully self-sufficient in all major fertilizer types — a milestone with economic, social, and political implications.