President Hakainde Hichilema today officiated at a groundbreaking ceremony for the construction of United Capital Fertilizer (UCF) $1.6 billion Urea Plant Phase 2 project, describing the investment as a major milestone in Zambia’s quest for industrialisation, food security and job creation.
The President said the plant will significantly boost local fertiliser production, reduce dependence on imports and lower the cost of inputs for farmers.
President Hichilema commended UCF and its partners for their additional investment in the production of urea, ammonia and ammonium nitrate at the 2,000-hectare site in Chilanga which he said was once full of rocks but is now a city on its own.
“This is a clear demonstration of what a serious investment can do to turn around a place defined as a rocky plant, but now an industrial site. Congratulations to UCF,” President Hichilema said.
The Head of State also commended the company for its continued confidence in Zambia, saying his administration will continue to market Zambia ferociously and aggressively as an investment destination.
He disclosed that UCF has pledged to invest up to $5 billion by 2030 and has already invested heavily, expressing optimism that the target will be achieved even before 2030.
President Hichilema singled out the company’s wastewater recycling system as exemplary, noting that raw water is extracted from underground, used, treated and reused, a practice he said other industries must emulate under climate change.
The President also called for accelerated investment in the chemical industry, noting that coal from Maamba is now being used to produce explosives for mining and other industrial uses.
“What we have seen around here tells us that coal can produce us white stuff that will lead to production of explosives. This is value addition,” he said.
The President said the project is a Zambian company employing Zambians, with a target of 10,000 direct jobs and thousands more indirect jobs for transporters, dealers and traders.
“This is a Zambian company employing Zambians directly and indirectly. 10,000 families multiplied by eight is 80,000 plus people feeding every day because a family member works here,” he said.
President Hichilema said the investment is key to the country’s food security agenda and the target of producing 10 million tonnes of maize, noting that UCF is providing quality, correctly weighed 50kg fertilizer tailored to soil types.
He said the development aligns with Government’s mantra of economic growth through investment and trade and other things will fall in place, adding that there are no shortcuts to development.
The President also conveyed gratitude to Chinese President Xi Jinping for the comprehensive strategic cooperative partnership between Zambia and China, which he said is delivering mutual benefits.
He urged Zambians to support and protect investments, stating that increased local production will reduce dependence on imports and position Zambia as a producer, processor and trader for the region.
Chinese Ambassador to Zambia, Han Jing, said the groundbreaking is tangible proof of commitments taking root and grand visions transforming into a growing industry.
Ambassador Jing extended gratitude to President Hichilema for honouring the ceremony twice in a year first for the launch of trial production of Phase 1 and now Phase 2, saying his presence gives the strongest endorsement to China-Zambia practical cooperation.
He said the industrial park where the ceremony was held represents a total investment of over $3 billion and in just 5 years has grown into a comprehensive manufacturing hub producing compound fertilizers, ammonia and urea, integrating energy supply and logistics, and providing over 10,000 jobs.
The Ambassador said Phase 2 will drive coordinated growth across upstream and downstream sectors, foster local SMEs, strengthen industrial supply chains and significantly reduce import dependence, conserve foreign exchange and strengthen national food security.
He said Zambia is now actively strengthening its competitiveness in fertilizer, energy and logistics while Chinese enterprises provide capital, technology and expertise, noting that the two countries’ strengths complement each other perfectly.
Ambassador Han said President Hichilema’s reelection has greatly strengthened confidence among international investors and disclosed that President Xi Jinping has extended warm congratulations, with both Heads of State reaffirming commitment to deepen cooperation.
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