United Capital Fertilizer (UCF) — a synthetic fertiliser manufacturer and distributor and subsidiary of Chinese conglomerate Wonderful Group — has launched a US$1.6 billion production expansion project in Zambia, aimed at reducing import dependency and strengthening supply to regional markets.

The second phase of the venture was formally inaugurated on 20 October, at a groundbreaking ceremony attended by Zambian President Hakainde Hichilema. The new facilities will be built at the company’s existing industrial site in Chilanga, Lusaka Province.

The project is designed to add annual production capacity of 540,000 tonnes of ammonia, 520,000 tonnes of urea, and 400,000 tonnes of ammonium nitrate. The plant will also have the capacity to produce 50,000 tonnes per year of food-grade carbon dioxide.

The expansion is expected to increase the availability of mineral fertilisers for local farmers and supply raw materials to other industrial activities.

UCF already produces compound fertilisers and urea for the Zambian market and neighbouring countries. With the increase in industrial capacity, the company intends to improve supply regularity, reduce the need for imports, and position Zambia as a regional supplier of agricultural chemicals in Southern Africa.

The investment is aligned with the government’s Grow Zambia agenda, which sets annual production targets of ten million tonnes of maize, three million tonnes of soybeans, and one million tonnes each of wheat and sugar.

Meeting these targets will depend, among other factors, on consistent access to quality mineral fertilisers, improved agricultural practices, and higher productivity.

Project to Create 5,500 Jobs

Construction of the new facilities is expected to take approximately three and a half years. During this period, an estimated 3,000 jobs are forecast to be created, with a further 2,500 permanent positions expected once the plant becomes operational.

The broader impact of the expansion on the agricultural sector will also depend on the ability to supply fertilisers at affordable prices, ensure efficient distribution, and guarantee timely deliveries — particularly ahead of planting seasons.

Source: Ukr AgroConsult