Almot Maqolo, Staff Writer 
LOCALISATION efforts in Zimbabwe’s fertiliser industry could hinge on securing a hefty US$115 million, according to a recent report.
Challenges range from missing raw materials to costly imports, highlighting the complexities of boosting domestic production.
The report, ‘Development of Local Content Thresholds for the Fertiliser, Packaging and Pharmaceutical Sectors in Zimbabwe 2023’, identifies several hurdles.
Chief among them is the unavailability of key raw materials, leading to low product quality and high input prices.
Limited working capital, electricity concerns, and import barriers further complicate matters.
Investment in state-of-the-art manufacturing equipment is seen as crucial, with an estimated cost of US$30 million.
The report suggests a public-private partnership approach, arguing that fertiliser’s strategic importance warrants government incentives to attract private sector investment.
Beyond equipment, funding is needed for constructing single and triple superphosphate plants, estimated at US$5 million and US$80 million respectively.
The report emphasises the need for collaborative efforts from the government, the private sector, and banks to shoulder these significant outlays.
Zimbabwe’s reliance on imports stands in stark contrast to its ambitions. Domestic production falls short, necessitating US$240 million in fertiliser imports in 2023 alone.
Experts propose attracting investors through bilateral arrangements, utilising models like build-operate-transfer or build-own-operate-transfer.
Government support measures such as bonds or irrevocable letters of commitment are also suggested.
Hope abounds though as many companies have promised investments in the sector.
Labenmon Investments and West International Holdings have pledged a US$1 billion investment in a comprehensive cement production project.
The ambitious initiative, slated for completion in 2026, encompasses the construction of a new cement plant, a grinding station, and a power plant.
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