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Zambia Breaks Ground on $340 Million Phosphate Plant in Collaboration with China

by SAT Reporter
January 26, 2025
in in Southern Africa, Zambia
0
Zambia Breaks Ground on $340 Million Phosphate Plant in Collaboration with China

Zambian Minister of Commerce, Trade and Industry, Chipoka Mulenga

On 25th January 2025, a groundbreaking ceremony was held in Chilanga district, Lusaka Province, Zambia, marking the commencement of an integrated phosphate product plant. This initiative is a collaborative venture between China’s Sino Great Group, through its subsidiary Sino Great Chemical Company Limited, and Zambia’s Wonderful Group of Companies Limited. The facility is set within a 1,000-hectare industrial park established by the Wonderful Group.

The project’s initial phase involves an investment of $340 million and aims to produce annually 250,000 tonnes of phosphoric acid, 750,000 tonnes of gypsum, and 300,000 tonnes of ammonium phosphate upon completion.

Jin Jun, counsellor at the Chinese Embassy in Zambia, highlighted the plant as a significant milestone in Sino-Zambian cooperation. He noted that the project aligns with President Hakainde Hichilema’s emphasis on value addition, job creation, and the adoption of advanced technologies. Jin stated, “This plant represents a solid step toward Zambia’s industrialisation and modernisation.”

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Agriculture is a cornerstone of Zambia’s economy; however, the nation has been heavily reliant on imported agricultural inputs, particularly fertilisers. The establishment of this plant is poised to alter this dependency by utilising local materials for fertiliser production, thereby enhancing self-sufficiency.

Representing Zhang Quan, chairperson of Sino Great Chemical Company Limited, Shashank Mehta reaffirmed the company’s dedication to creating a sustainable and efficient phosphate chemicals supply chain in Zambia. He described the project as a bold move towards unlocking Zambia’s natural resource potential through value addition and announced that the first phase is scheduled for completion by June of the following year.

During the construction phase, the project is expected to employ 2,000 workers. Once operational, it anticipates providing 1,600 direct jobs and generating 10,500 indirect employment opportunities. Additionally, plans are underway to develop a phosphate rock mine in eastern Zambia and construct a 40-megawatt power plant to ensure a sustainable electricity supply.

Mehta also revealed that following the completion of the first phase, the company intends to initiate the second phase, aiming to expand the plant’s production capacity further.

Zambian Minister of Commerce, Trade and Industry, Chipoka Mulenga, lauded the investors for selecting Zambia for this venture and underscored the project’s significance. He remarked that the construction of this plant would substantially reduce fertiliser costs in Zambia. Mulenga noted, “Zambia is now an exporter of D compound fertiliser in the region, thanks to these investments.”

This development signifies a pivotal advancement in Zambia’s industrial sector, promising to bolster the nation’s agricultural productivity and economic self-reliance.

Tags: AgricultureEconomic DevelopmentFertiliser ProductionindustrialisationPhosphate PlantSino Great GroupWonderful GroupZambia
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