Zambia has officially launched its first-ever urea manufacturing plant and an 85-megawatt thermal power facility, a twin project valued at US$641 million developed by United Capital Fertilizer (UCF) in Chilanga.
In a major step towards agricultural transformation and industrial growth, Zambia commissioned its maiden urea manufacturing plant and a co-located 85-megawatt thermal power facility. The dual-purpose complex, an investment by United Capital Fertilizer (UCF), is poised to fundamentally change the nation's agricultural landscape by significantly reducing its heavy reliance on imported fertilizers.
President Hakainde Hichilema officially commissioned the projects, which together are valued at US$641 million. The President hailed the event as a "triple occasion," celebrating the launch of the UCF urea plant, the thermal power facility, and the Wonderful Group of Companies Industrial Park.
"On this site, we will produce fertilizer for our consumption and for export to our neighbouring countries. This means food security through increased yields on our farms," President Hichilema stated. He highlighted the transformative potential of the new facility, noting it could boost maize productivity from less than two tonnes per hectare to up to 10 tonnes per hectare without needing to expand farmland, a move he proudly described as a way to avoid cutting more trees.
The Chilanga facility, whose construction began in November 2021, is equipped with modern technology designed to minimize emissions, reduce waste, and promote recycling. Crucially, the accompanying 85-megawatt thermal power plant will provide energy security for the operation while also contributing power to the national grid.
Immediately following the commissioning, United Capital Fertilizer confirmed a significant commitment to the project's future: a US$1.4 billion financing deal formalized with Chinese partners to support the second phase of development.
This substantial investment is set to double the plant鈥檚 urea production capacity to 1.6 million tonnes per year, cementing UCF鈥檚 position as one of Southern Africa鈥檚 largest fertilizer producers.聽
The expansion is strategically important for Zambia, which, according to the International Fertilizer Development Center (IFDC), ranked third in Africa for fertilizer imports in 2024, with urea making up nearly 36% of its approximately 796,713 tonnes of imported fertilizer. This reliance on imports has historically led to high input costs and exposed the agriculture sector to global supply shocks. UCF's increased local production is expected to bring greater price stability and enhanced local supply, directly benefiting maize and wheat growers.
