"New Industrial Engine Unveiled"

... Hichilema says the industrial park, second fertilizer and power plant serve as catalysts for investment, skills development, and regional trade.

By Francis Maingaila

Chilanga, Zambia24 - (October 15, 2025) — President Hakainde Hichilema has unveiled a new era in Zambia’s industrialisation drive with the commissioning of the United Capital Fertiliser (UCF) Urea Plant and the inauguration of the Wonderful Group Industrial Park in Chilanga, including an 85-megawatt power plant whose surpus will be channelled to the national grid, calling the milestone a catalyst for investment, skills development, and regional trade.

The total investment value of the project now stands at US$641 million, with a cumulative group investment of US$923 million, creating 3,400 direct jobs.

The projects carry a total investment value of US$641 million, with a cumulative group investment of US$923 million, creating 3,400 direct jobs. 

Initially designed to produce 300,000 metric tonnes of fertilizer annually, the facility’s capacity was expanded to 800,000 metric tonnes. 

The power plant generates 85 megawatts, of which 40 megawatts are supplied to the national grid, bolstering Zambia’s energy supply.

The fertilizer produced at the facility will serve both domestic consumption and regional exports, including Tanzania, Malawi, Zimbabwe, Botswana, and the Democratic Republic of Congo. 

The project integrates world-class, environmentally friendly technology, in line with World Bank standards and Equator Principles on social and environmental compliance.

United Capital Fertilizer has partnered with Copperbelt University to train chemical engineers, while a state-of-the-art chemical laboratory will facilitate practical learning and technology transfer. 

Extensive Corporate Social Responsibility (CSR) initiatives are under way, including the construction of a school and teacher housing costing K35 million, a hospital, and 1,000 housing units for workers. 

The project also received a US$100 million financing facility from ABSA Bank, which was critical for its timely completion.

President Hichilema said the project represented a turning point in the country’s industrial growth, adding that the plant’s establishment demonstrated what was possible under a stable and predictable business environment.

He noted that the government’s commitment to fostering private sector–driven industrialisation was paying off, with more investors now viewing Zambia as a destination of choice.

“The industrial park, second fertiliser and power plant are not just facilities — they are catalysts for future growth, investment, and job creation,” President Hichilema said. 

“They reflect our government’s resolve to transform Zambia into a hub of regional manufacturing and trade.”

He said the investment was aligned with Zambia’s agenda for sustainable development, skills transfer, and energy diversification, adding that local participation was key to ensuring that the benefits reached ordinary citizens.

“We are determined to create a conducive environment where Zambian talent thrives, where young people acquire practical industrial skills, and where communities benefit from infrastructure and jobs created by such investments,” the President stated.

President Hichilema also expressed appreciation to the Chinese government and the Wonderful Group for their continued support and partnership in advancing Zambia’s industrial transformation.

Speaking at the ceremony, Mr. Chance Kabaghe, Chairperson of UCF, described the project as an “industrial liberation landmark” for Zambia and the region. 

The plant, which has been operationalised following a vision set in motion in November 2021 by then–Vice President Hakainde Hichilema during the foundation stone laying, represents a major step in modernising Zambia’s agricultural input industry.

Initially designed to produce 300,000 metric tonnes of fertiliser annually, the facility was later expanded to 800,000 metric tonnes, with a total investment of US$282 million. The cumulative group investment for UCF now stands at US$923 million, creating 3,400 direct jobs.

“This facility employs world-class, environmentally friendly technology that meets World Bank standards and the Equator Principles on social and environmental compliance,” Kabaghe said. 

He added that independent global consultants, including Nixant ECA (UK) and WSP (South Africa), verified the plant’s safety and efficiency.

The plant features a gasification unit, an ammonia plant, a power generation unit with three boilers producing 85 megawatts, and automated packaging lines. Of the 85 megawatts generated, 40 are fed into the national grid, enhancing Zambia’s energy supply.

UCF has already established itself as a regional brand, exporting fertiliser to Tanzania, Malawi, Zimbabwe, Botswana, and the Democratic Republic of Congo.

To support sustainability and skills development, UCF has partnered with the Copperbelt University to train chemical engineers and plans to construct a state-of-the-art chemical laboratory to facilitate practical learning and technology transfer.

The company is also implementing extensive Corporate Social Responsibility (CSR) initiatives, including the construction of a school and teachers’ houses at a cost of K35 million, scheduled for handover to the Ministry of Education in 2026. Additionally, a hospital and 1,000 housing units for workers are under construction.

Kabaghe expressed gratitude to the government and financing partners, notably ABSA Bank, which provided a US$100 million facility critical to the project’s completion. He also commended the EPC contractor for delivering the facility ahead of schedule.

“This plant stands as a lasting symbol of Zambian innovation and industrial progress,” Kabaghe said.

Speaking at the commissioning ceremony, Mo Dingge, CNCEC Representative and Chairperson of Wuhan Engineering Group, said the project underscored the strength of Sino-Zambian collaboration and CNCEC’s commitment to high-standard design, quality construction, and long-term sustainability.

“It is a great honour for us at CNCEC to participate in the successful implementation of the United Capital Fertiliser Project,” Mr. Dingge said. 

“This project demonstrates the strength of our cooperation and our commitment to excellence in industrial development.”

He highlighted CNCEC’s extensive international footprint, noting that the company operates in over 80 countries and has completed more than 160 industrial projects worldwide. 

The fertiliser project, he said, serves as a benchmark for future collaboration and is expected to contribute significantly to regional agricultural productivity and economic growth.

Mr. Dingge reaffirmed CNCEC’s commitment to the Belt and Road Initiative, promising continued support for Zambia’s industrialisation and broader economic development. He added that the project aligns with the United Nations Sustainable Development Goals (SDGs), particularly in promoting food security and sustainable industrial practices across Africa.

“We are confident that this project will serve as a benchmark for Sino-Zambian cooperation and contribute to achieving the UN Sustainable Development Goals in Africa,” he said.

Mr. Dingge concluded by wishing Zambia prosperity and well-being for its people, expressing hope that the friendship between China and Zambia would continue to flourish.

Speaking at the commissioning ceremony, Minister of Commerce, Trade and Industry Chipoka Mulenga described the plant as “a true model of industrial growth and partnership.”

 He praised the project for not only boosting Zambia’s economy but also improving the livelihoods of communities in Chilanga and beyond.

“The Member of Parliament for Chilanga shared that this project has transformed lives in his constituency by employing hundreds of young people and enhancing community welfare,” Minister Mulenga said. 

“United Capital Fertiliser has invested in education, healthcare, housing, and road infrastructure for the local community.”

Key infrastructural developments include an 8-kilometre road linking the plant to Mumbwa Road, aimed at easing transportation challenges, as well as a newly built school and upgraded clinic, which Mulenga noted reflect the President’s vision for inclusive development.

The Minister emphasised the plant’s alignment with Zambia’s broader industrialisation agenda. “On Monday, the rehabilitated Nitrogen Chemicals of Zambia will be launched, and on Wednesday, the country will witness the first-ever starch plant in Lusaka,” he said. 

“This is evidence that Zambia is now producing what it once imported. This is what local value addition and economic transformation look like.”

Minister Mulenga also lauded the government’s approach to local resource mobilisation, noting that local banks and pension funds are increasingly financing national projects. 

“This is how we build our economy from within,” he said.

He concluded by urging stakeholders to embrace the Local Content Policy, which ensures that Zambian small and medium enterprises (SMEs) participate in and benefit from large-scale investments such as the United Capital Fertiliser Plant.

The ceremony concluded with an invitation for His Excellency, the President of the Republic of Zambia, to deliver the keynote address and officially commission the landmark project.

China-Zambia Partnership Strengthened

Chinese Ambassador to Zambia, Han Jing, lauded the commissioning of the United Capital Fertiliser (UCF) Urea Plant and the inauguration of the Wonderful Group Industrial Park as a milestone in the growing partnership between China and Zambia.

Speaking during the commissioning ceremony, Ambassador Han extended warm congratulations on behalf of the Government and people of China, describing the project as “a shining example” of bilateral cooperation under the Comprehensive Strategic Partnership established by President Hakainde Hichilema and President Xi Jinping.

The UCF Urea Fertiliser Plant, with an initial annual production capacity of 300,000 tonnes—set to expand to over 800,000 tonnes—aims to meet domestic fertiliser demand while positioning Zambia as a fertiliser exporter. The plant is expected to save foreign exchange and create significant employment opportunities for local communities.

Ambassador Han highlighted that over the past 15 years, the Wonderful Group has invested approximately US$1.5 billion in Zambia, creating over 7,000 jobs and supporting local infrastructure development, including roads, schools, and hospitals. The group has also bolstered more than 1,000 local businesses through its procurement practices.

Looking ahead, the ambassador noted that upcoming phases of the project—including the Ammonia Plant and the Industrial Park expansion—will further strengthen Zambia’s manufacturing base and regional trade prospects.

“China remains committed to working with Zambia to advance modernisation, industrialisation, and sustainable development,” Ambassador Han said, expressing hope for Zambia’s continued prosperity and for the enduring friendship between the two nations.

Wonderful Group Commits $5 Billion Expansion

Speaking when he gave a vote of thanks during the commissioning, Wonderful Group of Companies Chief Executive Officer Yauch Wang said his organisation will invest US$5 billion to expand its operations in Zambia through the establishment of the Wonderful Group Industrial Park, which will create over 25,000 direct jobs within the next seven years.

Mr. Wang thanked President Hakainde Hichilema and his government for providing a stable and predictable investment environment that continues to attract private sector participation.

“The private sector cannot invest millions of dollars if government posture is not right. Consistent policies and deliberate actions are key — and we are getting this from your government, Mr. President,” Wang said.

He commended financial institutions for their role in supporting industrial growth, particularly ABSA Bank, which financed the Urea project, and ZANACO, which contributed to the earlier construction of the NPK (Compound D) Fertiliser Plant that enabled Zambia’s first fertiliser exports to the region.

“ABSA Bank took the risk and enabled us to complete and switch on both the Urea production and power generation. This is our story, and it matters beyond Zambia,” he said.

Mr. Wang also urged more banks to finance new Greenfield projects to boost industrial expansion, noting that sustainable development depends on forward-looking investment models.

He further expressed appreciation to the Member of Parliament and Mayor of Chilanga, the District Administration, and the Malcom and Mudengwa communities for their continued support, describing them as integral to the company’s success.

 “We are completing the construction of a secondary school and will soon extend the hospital to improve healthcare for our people,” he said.

Mr. Wang reaffirmed the company’s commitment to fulfilling its pledges, announcing the signing of a US$1.4 billion expansion of the Ammonia and Urea Plant, which will add 500,000 metric tonnes per annum (mtpa) of Ammonia, 800,000 mtpa of Urea, and 300 megawatts of power for industrial use.

He said the new Industrial Park will become a hub for manufacturing and skills development, creating opportunities for Zambia’s youth.

“Our slogan, ‘Leading the Industry, Creating the Future,’ is not just a motto but our guiding principle. The Wonderful Group delivers on its pledges — and often exceeds them. Watch the space!” Wang declared.

The commissioning of the Urea Fertiliser Plant marks a major step in Zambia’s industrialisation drive, positioning the Wonderful Group as a key player in national and regional manufacturing growth.