Zambia launches US$641M urea plant in Chilanga
Following the commissioning, United Capital Fertilizer confirmed that it had formalized a US$1.4 billion financing deal to support the second phase of development
ZAMBIA – Zambia has launched its first-ever urea manufacturing plant, alongside an 85-megawatt thermal power plant, both developed by United Capital Fertilizer (UCF) in Chilanga District, Lusaka Province.
The twin projects, collectively valued at US$641 million, were officially commissioned by President Hakainde Hichilema, marking a major milestone in the country’s drive toward fertilizer self-sufficiency and industrial transformation.
The development positions Zambia to reduce its dependence on imports while laying the foundation for a regional fertilizer production hub.
Speaking at the launch, President Hichilema described the event as a “triple occasion,” celebrating the commissioning 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,” the President said.
He emphasized that the new facility would help boost maize productivity from less than two tonnes per hectare to up to 10 tonnes per hectare, without expanding farmland.
“We don’t have to cut more trees in order to produce 10 tonnes, for example, on one hectare. This is a big deal!” he said.
The President also noted that more than 3,000 direct jobs have already been created through the project and directed authorities to fast-track land formalities related to the industrial park to accelerate further investment.
The Chilanga plant, whose construction began in November 2021, incorporates modern technology designed to minimize emissions, reduce waste, and promote recycling. Beyond fertilizer production, the 85-megawatt thermal power plant will provide energy security to the facility and contribute to the national grid.
Minister of Commerce, Trade and Industry Chipoka Mulenga praised UCF’s parent company, Wonderful Group of Companies, for integrating social and community development within its investment framework.
“Wonderful Group of Companies, through United Capital Fertilizer, has come with a unique way of doing things. UCF has set up a centre that will incorporate more than 300 pupils in this community. UCF is upgrading to a hospital a clinic it built, and eight kilometres of the road will also be done by UCF,” he said.
US$1.4B financing to expand capacity
Following the commissioning, United Capital Fertilizer confirmed that it had formalized a US$1.4 billion financing deal to support the second phase of development at its Chilanga complex.
The investment, backed by Chinese partners, will double the plant’s urea production capacity to 1.6 million tonnes per year, making UCF one of the largest producers in Southern Africa.
According to Chance Kabaghe, Chairman of the UCF Board, the additional production will cater to both domestic and regional markets.
“We are proud to say that our company has become a regional benchmark in the manufacture of tailor-made fertilizers, exported to Tanzania, Malawi, Zimbabwe, Botswana and the Democratic Republic of Congo,” Kabaghe said.
The expansion is expected to reduce Zambia’s heavy reliance on imported fertilizer while positioning the country as a competitive exporter within the Southern and Central African regions.
Zambia remains one of Africa’s largest fertilizer importers, alongside Ethiopia, Kenya, Nigeria, and Côte d’Ivoire.
According to the International Fertilizer Development Center (IFDC), Zambia imported approximately 796,713 tonnes of fertilizer in 2024, ranking third in Africa behind Ethiopia and Kenya. Urea made up nearly 36% of these imports, followed by NPK (15.29%), monoammonium phosphate (10.66%), ammonium sulfate (9.48%), and muriate of potash (8.33%).
This dependence on imports has contributed to high input costs for farmers and exposed Zambia’s agriculture sector to global supply shocks and currency volatility. With UCF’s expanded production, Zambia could see greater price stability, enhanced local supply, and higher yields, particularly for maize and wheat growers.
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