Tanzania in talks with Japanese engineering firm to build fertilizer plant
The move comes as Tanzania looks to cut reliance on imports and steady supply for farmers.
TANZANIA – Tanzania is in talks with Toyo Engineering Corporation to set up a local fertilizer plant, as the country works to secure supply and support farm output.
A delegation from the Japanese firm, led by Taisuke Nonaka, met Athumani Kilundumya, Deputy Permanent Secretary at the Ministry of Agriculture, to discuss the plan. The government signaled strong support for private sector investment in fertilizer production.
“The government will continue to work with private investors in the fertilizer sector to ensure sufficient supply and accelerate fertilizer adoption by our farmers,” Kilundumya said.
Tanzania relies heavily on imported fertilizer. Data from the International Fertilizer Development Center shows the country imported an average of 568,217 tonnes each year between 2019 and 2023. Local output stood far lower at about 37,510 tonnes per year over the same period.
Recent global tensions have added pressure. Disruptions along the Strait of Hormuz have slowed shipments from the Persian Gulf, a key source of supply. According to UNCTAD, Tanzania sourced about 31 percent of its fertilizer imports from that region in 2024.
The planned plant would produce key inputs such as ammonia and urea. These products play a central role in boosting crop yields, and officials expect the project to improve access for farmers across the country.
Untapped gas reserves in focus
Tanzania holds large natural gas reserves, which serve as a key input in nitrogen fertilizer production. The state oil firm Tanzania Petroleum Development Corporation estimates reserves at 54.57 trillion standard cubic feet. However, less than 2 percent of this has been used so far.
The new plant could help link these resources to local industry. Officials see this as a step toward reducing import reliance while making better use of domestic assets.
Details on the project’s cost, capacity, and timeline remain unclear. Still, interest from foreign investors in Tanzania’s fertilizer sector continues to grow.
In August 2024, PT ESSA Industries signed an agreement with TPDC and the Tanzania Investment Centre to build a urea plant in Mtwara. The project carries a cost of Sh3.5 trillion, which is about $1.35 billion.
Together, these efforts show a steady push to build local production and protect the country from global supply shocks.
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