UCF invests US$1.6B in fertilizer plant expansion
The expansion is expected to add annual production capacity of 540,000 tonnes of ammonia, 520,000 tonnes of urea and 400,000 tonnes of ammonium nitrate.
ZAMBIA – United Capital Fertilizer (UCF), a subsidiary of China’s Wonderful Group, has launched a US$1.6 billion expansion of its ammonia and urea fertilizer manufacturing facilities in Chilanga, Lusaka Province, as the country seeks to strengthen domestic agricultural input supplies, reduce import dependence and expand exports to regional markets.
President Hakainde Hichilema officiated the groundbreaking ceremony on 20 October 2026 at the Wonderful Group Industrial Park.
The Phase II project is designed to increase Zambia’s fertilizer manufacturing capacity significantly.
According to UCF, the expanded facilities will add annual production capacity of 540,000 tonnes of ammonia, 520,000 tonnes of urea, 400,000 tonnes of ammonium nitrate and 50,000 tonnes of food-grade carbon dioxide.
The additional output will support agricultural fertilizer production while supplying raw materials and products for other industrial applications.
The investment builds on UCF’s existing manufacturing operations, which produce compound fertilizers and urea for the Zambian market and neighbouring countries.
By expanding local production, the company aims to improve the availability of agricultural inputs, strengthen supply reliability and position Zambia as a competitive fertilizer supplier in Southern Africa.
President Hichilema welcomed the investment, describing it as an important contribution to the country’s industrialization and agricultural development agenda.
He emphasized the role of private-sector investment in creating employment, expanding manufacturing and generating business opportunities across the economy.
The government has also pledged to improve the investment climate and accelerate approval processes for major industrial projects.
The expansion is expected to create approximately 5,500 jobs, including 3,000 positions during construction and 2,500 permanent jobs once the facilities become operational.
Additional opportunities are anticipated across transport, distribution, retail, engineering and agricultural supply chains.
UCF’s investment aligns with the government’s Grow Zambia Agenda, which targets annual production of 10 million tonnes of maize, three million tonnes of soybeans, and one million tonnes each of wheat and sugar.
Achieving these targets will require reliable access to quality fertilizers, improved farming practices and stronger agricultural value chains.
Beyond domestic supply, the project is expected to strengthen Zambia’s position as a regional fertilizer exporter, potentially generating foreign exchange and supporting cross-border trade.
The development also highlights growing economic cooperation between Zambia and China, with Wonderful Group committing to further industrial investment in the country.
Construction is expected to take approximately three and a half years.
Once completed, the expansion could become a major contributor to Zambia’s chemical manufacturing sector, although its impact on farmers will depend on product affordability, distribution efficiency and the timely availability of fertilizers ahead of planting seasons.
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