by Grace Chekai
In line with its substitution thrust and in the spirit of promoting local industry, Government is going to source fertilizer for the Presidential Input Scheme and Command Agriculture from the local fertiliser manufacturers, the Harare Post has learnt.
A well placed contact from the Ministry of Industry and Commerce, told this publication that Government is set to conclude contracts with two major local fertiliser manufacturers namely, Sable Chemicals and Chemplex Corporation.
The contact said the draft contracts for the supply of the fertilizer had been cleared by the Attorney General`s office and she added that both Treasury and the Reserve Bank of Zimbabwe (R.B.Z), are working on a financing plan for the fertilizer deal.
The contact said under this agreement, Sable Chemicals was expected to produce 30 000 metric tonnes of ammonia nitrate for the 2020/2021 summer season.
To achieve these quantities, the Sable Company needs US$13 million to be paid immediately in advance so that they can buy critical raw material like ammonium gas which they source from South Africa.
Chemplex is also expected to supply 185 000 metric tonnes of compound fertilizer which it will produce through its subsidiaries- Zimphos and Zimbabwe Fertiliser Company (Z.F.C).
According to a contact Chemplex needs US$19 million for the importation of raw materials and an additional US$36 million to import high analysis fertilisers which is not produced locally.
She explained that imports would be considered only if the stocks produced by local companies under this facility are exhausted.
The two fertiliser firms will be dedicated as importers of the special fertiliser which is not locally produced.
As part of Government’s obligation, it will supply foreign currency to import this special fertiliser.
The contact said under the proposed agreement, pre-financing for fertilisers purchased by Government will be guaranteed for the first two years and thereafter the issue of pre-financing will be reviewed.
One Agronomist, Reuben Matenga commented saying, “This agreement will save foreign currency for the country. For the past five years, Government was spending US$100 million on fertiliser imports.”
A Bulawayo based Industrialist Charity Matsa, commented the arrangement saying it should rejuvenate capacity utilization of local fertiliser companies and urged Government to extend similar contracts to other industries in the agro-sector.
A farmer from Banket, Tapera Moyo said, “This deal will ensure that agricultural inputs get to the farmer timeously for the 2020/2021 farming season. Because of the Covid-19 pandemic, importation of fertiliser was likely going to be difficult since the movement of goods has been slowed.”
