Zambia to invest $1.6 bln in expanding nitrogen fertilizer production

United Capital Fertilizer (UCF), a subsidiary of China’s Wonderful Group, has launched a $1.6 bln project to expand nitrogen fertilizer production in Zambia. The new capacity will be developed at the company’s existing facility in Chilanga, Lusaka Province. Construction of the second phase officially began on October 20, 2026, with Zambian President Hakainde Hichilema attending the groundbreaking ceremony. The investment aims to reduce the country’s dependence on fertilizer imports and expand exports to neighboring markets.

The project will add annual production capacity of 540 thsd tons of ammonia, 520 thsd tons of urea and 400 thsd tons of ammonium nitrate. The facility will also be capable of producing 50 thsd tons of food-grade carbon dioxide per year. The expansion is expected to increase mineral fertilizer supplies for local farmers while providing raw materials for other industries.

UCF already produces compound fertilizers and urea for Zambia’s domestic market and neighboring countries. The additional capacity is expected to improve fertilizer supply reliability, reduce import dependence and strengthen Zambia’s position as a regional supplier of agricultural chemicals in Southern Africa.

The investment aligns with the government’s Grow Zambia Agenda, which targets annual corn production of 10 mln tons, soybean output of 3 mln tons, and wheat and sugar production of 1 mln tons each. Achieving these targets will require reliable access to quality mineral fertilizers, improved cultivation practices and higher agricultural productivity.

Construction of the new facilities is expected to take approximately 3.5 years. The project is projected to create around 5,500 jobs, including 3,000 during construction and 2,500 permanent positions once the plant becomes operational. However, the impact of expanded production on the agricultural sector will depend on fertilizer affordability, distribution efficiency and timely deliveries ahead of planting seasons.

Tags: fertilizers, nitrogen fertilizer, Zambia