Multi Billion Dollar Fertilizer Plant Coming To Tanzania
Posted on : Tuesday , 20th December 2016
Construction of a multitrillion shilling fertiliser plant with envisaged daily production capacity of 3,850 tonnes is scheduled to start in Kilwa, Lindi Region, by next March. The petrochemical complex, a partnership project under a consortium of investors from Tanzania, Europe and Asia, is among the largest fertiliser investments in the continent.
Permanent Secretary (PS) in the Ministry of Industry, Trade and Investment, Dr Adelhelm Meru, told the 'Daily News' in Dar es Salaam yesterday that initially the project had to commence this month but there were some hitches.
"This is a big project and in any project of that calibre, there are challenges that are likely before it takes off ... they have been addressed and we are set to begin construction in the first quarter of next year," Dr Meru explained, adding that all preparations, including compensation of evicted residents to pave way for the project, are complete.
The 1.2 billion Euro (about 3trn/-) project, the single largest fertiliser project in the country and three times bigger than the Dangote Cement plant whose construction cost 500 million US dollars (over 1trn/-), will employ world leading technologies.
German Ambassador to Tanzania, Egon Kochanke, on Wednesday said the mega fertiliser factory will cost euro 1.2 billion and will be one of the largest fertiliser factories in Africa. The ambassador made the remarks during talks with the Minister of Finance and Planning, Dr Philip Mpango, where they discussed a range of development issues.
He called on the government to address the challenges related to the natural gas cost to allow construction of the fertiliser plant to start as early as possible to boost the country's agricultural sector.
The envoy who was accompanied by his deputy, Ambassador John Reyels and Director of Cooperation in the embassy Julia Hanning, described the huge fertiliser plant in the country as the outcome of President John Magufuli's industrialisation drive.
During the talks, Dr Mpango appreciated the cooperation that exists between the two friendly countries, acknowledging that the investment will boost agriculture sector which contributes over a quarter to the gross domestic product (GDP) and employs 75 per cent of the labour force, but whose growth remains stifled by low crop yield.
The fertiliser plant, like the Dangote cement factory will be situated in the Southern part of the country - Lindi Region, close to the large offshore gas finds. Natural gas is one of the hydrocarbon sources of ammonia, a key fertiliser ingredient.
And like Dangote Cement Factory whose production saw price of cement in the country dropping, the fertiliser factory will likely lead to declining price of the essential farm input.
According to media reports, the state-run Tanzania Petroleum Development Corporation (TPDC) has signed a joint venture agreement with German firm Ferrostaal Industrial Projects, Danish industrial catalysts producer Haldor Topsoe and Pakistan's Fauji Fertiliser Company to develop the plant.
Local partners in the investment include Minjingu Mines and Fertiliser, a major producer and distributor of fertiliser for East, Central and Southern Africa. Tanzania currently imports most of her fertiliser but once the fertiliser plant begins production it will boost agriculture output with surplus exported to foreign markets.
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