Tanzania engages OCP Group to set up fertilizer mixing plant in Kisarawe

TANZANIA – Executives from Tanzania are reportedly in talks with Moroccan company OCP Group, to have the company set up a fertilizer mixing plant on a site based in Kisarawe.

Tanzania depends up to 90% on imports for its fertilizer needs, estimated at 430,000 tonnes per year.

The country eyes the installation of a new factory will contribute to strengthening the production capacity of the local industry.

This decision and talk were taken jointly by a delegation from the two countries on the sidelines of the second edition of the African Summit on Food Sovereignty (Dakar 2 Summit), which was held from January 25 to 27 in Senegal.

The negotiation of the fertilizer plant is part of a strategy aimed at ensuring an adequate supply of fertilizers at affordable prices in the Tanzanian market.

 Currently, the Tanzania Fertilizer Company (TFC), the main distributor of fertilizers in the country, is in the throes of a major financial crisis.

The Citizen reported that the Tanzanian government has given the Tanzania Fertilizer Company (TFC) US$48.223 million in the capital in a bid to revive the company and “ensure a sufficient supply of fertilizers at reasonably lower than market prices.”

Despite the government’s support, TFC will need no less than US$361.67 million to rescue the company, the Tanzanian minister of agriculture argued.

The capital would allow the country to import 25,000 metric tonnes of fertilizer that need to be distributed across the country, said Tanzania’s Minister of Agriculture Anthony Mavunde.

A few days ago, Tanzania received a huge boost to its agriculture sector after the African Development Bank Group decided to commit US$120 million (about 280bn/-) with a focus on four value chains through irrigation and logistics hubs.

To complement the investment, agriculture stakeholders in the country have proposed intervention methods, such as policy harmonization and resource mobilization, to mitigate the effects of climate change on the country’s agronomy.

Others are working to improve water harvesting technology and infrastructure, increase support for research institutes, address post-harvest losses and involve all stakeholders.

They have also factored in education to farmers and the community about the consequences, as well as urging wealthy countries to keep their promises to financially assist developing countries in dealing with the effects of climate change.

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