ZDA, United Capital Fertiliser signs an IPPA guaranteeing safety of more than $400m fertilizer production investment

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United Capital Fertiliser Company Limited CEO Mr Huang Yao Chi (left) and Zambia Development Agency director general Mr Albert Halwampa signing the Investment Promotion and Protection Agreement (IPPA) in Lusaka on Monday, September 26, 2022.

 

 

 

 

 

 

 

 

 

 

GOVERNMENT through the Zambia Development Agency (ZDA) has signed an Investment Promotion and Protection Agreement (IPPA) with United Capital Fertiliser Company Limited, a subsidiary of Wonderful Group of Companies, reports Francis Lungu.

The IPPA is intended to achieve two aspect of business investment; firstly it gives an extra layer to an investor that their investment is protected by Government and it also provides incentives such as easing licensing procedures, tax consideration and even immigration issues that ZDA facilitates on behalf of an investor.

The United Capital Fertiliser Company Limited committed an initial investment of $309million when it was launched in the final quarter of 2021.

As at now, the company that is projecting to be producing a combined 300, 000metric tones of different fertilizers, has already pumped in $140m with a further planned $303m to be released soon, making the investment surpass the initial capital, according to United Capital Fertiliser Company Limited board chairperson Chance Kabaghe.

The fertilizer company has already started distribution of the commodity across the country ahead of the 2022/2023 cultivation season.

ZDA director general Albert Halwampa says the agency is excited and proud to sign the IPPA with the United Capital Fertiliser Company seeing the firm’s fast growth rate in a short period of time.

“Already production and distribution of fertilizers has started. This shows that good economic fundamentals that the Government has provided are attracting investment. Economic fundamentals such as the exchange rate, [lowering] inflation have stabilized the investment climate,” Mr Halwampa said at the signing of the IPPA at United Capital Fertiliser Company Limited plant in Lusaka West in Chilanga district.

The ZDA chief has sounded a call for more investors to consider coming to Zambia as the investment climate has never been this better in a long time.

Mr Kabaghe further said the company is unique in the sense that it is producing specific kinds of fertilizers suitable for particular soil types across the country.

He says the company cannot afford to produce and sell sub-standard fertilizers because of the importance of the agriculture sector which involves 70 percent of Zambia’s estimated 18.5million population (before the 2022 census exercise on population and house whose results are yet to be released).

“We are here to stay and therefore we can only have the best fertilizers to suit all soil types around the country,” he said. “This is a turning point to producing not only for Zambian farmers but for the regional market as well. I am glad that Government has recognized the kind of investment our company has put in place. We can guarantee that no one will be producing fertilizer at a lower cost and prize than us with an all-year-round production,” he said.

With this approach in place, Mr Kabaghe is confident farmers are guaranteed of timely fertilizer distribution that will make the country self-sustainable.

And United Capital Fertiliser Company Limited chief executive officer Huang Yao Chi says the firm has the capacity to satisfy both the local and regional demand for the commodity.

Government through the ZDA signs the IPPAs with companies that have applied to sign, with a minimum investment capital of $10m.