The Mutapa Investment Fund (MIF) has earmarked USD 153 million to revive companies in Zimbabwe’s fertiliser value chain, in a strategic push to reduce import dependence, cushion the country from global supply shocks and support agricultural productivity.
The investment, which targets key State-linked fertiliser producers, is expected to strengthen local production capacity at a time when global geopolitical tensions continue to disrupt supply chains and drive up the cost of inputs critical to food security.
MIF chief executive Dr John Mangudya revealed the plans when he appeared before Parliament’s Portfolio Committee on Industry and Commerce in Mt Hampden on Tuesday.
“The MIF has committed a substantial capital amount of USD 153,1 million for the revival of fertiliser value chain assets,” said Dr Mangudya.
He said funds are being disbursed in phases, tied to project milestones and verified expenditure, to ensure efficiency and accountability.
So far, USD 5,3 million has been released for Phase One of the Dorowa Minerals phosphate plant revival, USD 10 million to ZFC Limited, USD 3 million to ZimPhos and USD 13,3 million to Sable Chemicals.
The fertiliser value chain, which includes phosphate mining, chemical processing and blending, is critical to Zimbabwe’s agriculture sector, which underpins food security and contributes significantly to the economy.
Strengthening this chain locally reduces exposure to volatile international markets and ensures timely availability of inputs for farmers.
Dr Mangudya said refurbishment of the Dorowa Minerals plant is now 95 percent complete and expected to be fully operational next month, with a projected output of 100 000 tonnes of phosphate concentrates.
This is expected to translate into about 300 000 tonnes of basal fertiliser, against a national requirement of 450 000 tonnes.
Overall, Zimbabwe requires approximately 1,4 million tonnes of fertiliser annually, including ammonium nitrate and single superphosphates.
Reviving local production capacity is therefore seen as key to narrowing the supply gap and stabilising prices for farmers.
On the ZimPhos sulphuric acid plant, Dr Mangudya said its revival is dependent on the consistent supply of phosphate concentrates from Dorowa.
“The rehabilitation of the sulphuric acid plant requires specialised engineering expertise and equipment with long procurement lead times,” he said.
“Progress has been made in resolving mobilisation challenges, and technical assessments are underway to determine the integrity and compatibility of equipment valued at around US$4 million.”
Dr Mangudya said when MIF assumed control of fertiliser-related entities in 2024, it identified several operational challenges, including obsolete equipment, legacy debts and corporate governance weaknesses, all of which had to be addressed to restore viability.
The urgency of developing a resilient local fertiliser industry has been heightened by ongoing geopolitical tensions, which have disrupted global trade flows and increased the cost of key agricultural inputs.
Permanent Secretary for Lands, Agriculture, Fisheries, Water and Rural Development, Professor Obert Jiri, told the same committee that Zimbabwe’s fertiliser supply chain remains highly exposed to international risks.
He cited global conflicts, including tensions involving major fertiliser-producing regions and the Russia-Ukraine war, as having significantly affected the availability and pricing of fertiliser and raw materials.
Zimbabwe imports key inputs such as urea and ammonium nitrate from Russia, potash and NPK blends from Belarus, while urea, liquefied natural gas feedstock and sulphur are sourced from countries such as Oman, the United Arab Emirates and Qatar.
Saudi Arabia also supplies urea and sulphuric acid.
“Zimbabwe’s fertiliser supply chain is heavily exposed to geopolitical risks due to concentration in conflict-affected or transit-dependent regions,” said Prof Jiri.
Against this backdrop, the MIF’s investment is expected to enhance national resilience by localising production, reducing import bills and ensuring consistent supply of fertiliser to farmers.
The revival of the fertiliser value chain also aligns with broader.
Government efforts to support agricultural growth, improve yields and strengthen food security, while stimulating industrial activity through value addition and beneficiation.
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