Chinese Firm Xintai Lands US$200M Deal to Build Zimbabwe Fertiliser Plant

Zimbabwe is set to begin construction of a US$200 million nitrogen fertiliser plant in June 2026, in a move aimed at reducing import dependence and strengthening agricultural productivity.

The Ministry of Industry and Trade said the project will be led by Chinese firm Xintai, with production expected to commence in 2027.

Once operational, the plant will have the capacity to produce 200,000 tonnes of urea and 200,000 tonnes of ammonium nitrate annually, significantly boosting domestic fertiliser supply.

Government officials say the investment is expected to ease supply constraints, support farmers and create jobs. “This development will result in increased employment, improved local fertiliser production and better agricultural yields,” the ministry said.

Zimbabwe remains one of the largest fertiliser consumers in sub-Saharan Africa but continues to rely heavily on imports. Trade data indicates the country spent approximately US$331 million on fertiliser imports in 2024. Nitrogen-based products accounted for 51 per cent of the total, followed by compound fertilisers at 32 percent and potash at 16 per cent.

According to the International Fertiliser Development Centre, Zimbabwe’s annual fertiliser consumption averaged 408,606 tonnes between 2014 and 2018. Estimates from the Food and Agriculture Organisation show fertiliser application reached 30.8 kilograms per hectare in 2023.

While this exceeds the regional average of 18.2 kilograms per hectare, it remains below the African Union target of 50 kilograms per hectare set in 2006.

The planned facility is expected to improve access to fertiliser and potentially lower costs over time, particularly for key crops such as maize, tobacco and cotton, which depend on reliable input supply.

Regionally, demand for agrochemicals continues to grow, driven by rising food requirements, climate-related pressures and farmer support programmes. Market research firm Mordor Intelligence projects Africa’s agrochemicals market will expand from US$12.21 billion in 2025 to US$15.08 billion by 2031, with fertilisers accounting for more than half of the market.

Despite this growth, constraints including high input costs, logistics challenges and counterfeit products continue to limit access for smallholder farmers. However, investments such as Zimbabwe’s new plant signal a broader shift towards local production and more resilient agricultural supply chains.