UCF UNVEILS $1.6 BILLION FERTILISER EXPANSION

Project to create 5,500 jobs and boost Zambia’s fertiliser production capacity

By Francis Maingaila ♥️

Lusaka, Zambia24 — 20-10-2026 — President Hakainde Hichilema has commissioned the construction of Phase II of United Capital Fertilizer (UCF)’s urea plant in Chilanga District, Lusaka Province, in a US$1.6 billion investment expected to expand Zambia’s fertiliser production capacity, create jobs and strengthen the country’s position in regional markets.

The expansion is expected to create 5,500 jobs and increase annual production capacity by 547,000 metric tonnes of ammonia, 527,000 metric tonnes of urea, 47,000 metric tonnes of ammonium nitrate and 50,000 metric tonnes of food-grade carbon dioxide. The products serve agricultural and industrial needs, with urea and ammonium nitrate used in fertiliser production and carbon dioxide applied in food processing and other industries.

Mr Hichilema said the investment demonstrated the role private-sector participation could play in accelerating industrialisation, creating employment and expanding business opportunities for Zambians.

Speaking at the groundbreaking ceremony, the President commended UCF and its partners for expanding their investment in Zambia, saying the development of the company’s approximately 2,000-hectare property had transformed what was once a rocky farm into a major industrial site.

“Congratulations to UCF. This is a clear demonstration of what serious investment can do to turn around a place defined as a farm, a rocky farm, but now an industrial place,” he said.

Mr Hichilema thanked the investors for their continued confidence in Zambia and said his administration would intensify efforts to market the country as an investment destination.

He said Zambia had substantial natural resources whose economic potential could be realised by attracting investors capable of converting them into productive assets and finished goods.

The President also acknowledged the support of the Chinese government and reaffirmed Zambia’s commitment to strengthening its comprehensive strategic cooperative partnership with China.

He said cooperation between the two countries should deliver tangible mutual benefits, citing UCF’s investment as an example of how international partnerships could support domestic industrial development.

Mr Hichilema said the company had committed to investing up to US$5 billion by 2030 and expressed optimism that the target could be achieved ahead of schedule if the current pace of investment continued.

He described the expansion of fertiliser production as important to Zambia’s agricultural productivity, food security and wider economic ambitions.

UCF board chairperson Chance Kabaghe said the US$1.6 billion ammonia and urea expansion project was expected to create 5,500 jobs and strengthen Zambia’s position as a regional supplier of agricultural inputs.

Mr Kabaghe said construction was expected to take three and a half years, with 3,000 jobs to be created during the construction phase and another 2,500 once the facilities became operational.

He said the investment would expand the company’s production capacity and support the Government’s Grow Zambia agenda by improving the availability of locally manufactured fertiliser.

Mr Kabaghe said increased domestic production would help meet farmers’ fertiliser requirements while positioning Zambia to supply neighbouring countries.

“Our ambition is clear: to contribute to a Zambia that produces enough to feed itself, supports its farmers and supplies the wider region,” he said.

He said reliable access to quality fertiliser was essential to improving agricultural productivity, increasing food production and developing Zambia’s agricultural export market.

Mr Kabaghe cited the Grow Zambia agenda’s agricultural targets, which include annual production of 10 million tonnes of maize, three million tonnes of soya beans, one million tonnes each of wheat and sugar, and US$1 billion in agricultural exports.

He said UCF had become an important player in Zambia’s fertiliser manufacturing industry since its establishment in 2021, with operations serving farmers locally and across the region.

Mr Kabaghe said the company had created 1,750 direct jobs and more than 8,500 jobs across its value chain, including activities linked to transportation, distribution, supplies and other services.

He said UCF was strengthening its engagement with farmers through open days that brought together small-scale and commercial producers to discuss their needs, exchange knowledge and build partnerships aimed at improving agricultural productivity.

Mr Kabaghe said the company had signed a memorandum of understanding with Copperbelt University to support infrastructure development, student internships and partnerships intended to bridge the gap between academic training and industry requirements.

He said the new investment would reinforce the company’s commitment to employment creation, skills development and responsible manufacturing, alongside continued collaboration with the Government and the farming community.

Mr Kabaghe thanked President Hichilema for supporting the investment and creating an environment in which projects of that scale could be undertaken.

He said the company hoped to welcome the President back in three and a half years to commission the completed Phase II facilities.

Wuhuan Engineering Company chairperson Yu Xin said the expansion marked another milestone in Zambia’s chemical industry and would support the country’s transition from fertiliser imports to exports through increased domestic production and value addition.

Mr Yu said the investment would build on previous projects undertaken by Wuhuan Engineering and UCF to strengthen Zambia’s fertiliser production capacity.

“This project will drive Zambia’s transition from fertiliser import to an export,” he said.

He said the partnership had already delivered progress through the construction and operation of UCF’s Phase I urea project, which began three years ago.

Mr Yu said the project had strengthened domestic fertiliser supply, supported the development of Zambia’s chemical industry and helped develop a skilled technical workforce.

He added that the partners had embarked on a phosphate fertiliser project about a year earlier, which was progressing at full speed and was expected to fill a gap in Zambia’s domestic phosphate fertiliser industry upon completion.

Mr Yu said the new complex represented a further step in expanding the country’s industrial capacity and increasing the utilisation of locally available mineral resources.

He pledged that Wuhuan Engineering would apply its technological capabilities, technical expertise and management experience to ensure the project was delivered on time, met the required quality standards and was implemented in an environmentally responsible manner.

“We will fully leverage our technology and management experience, mobilise our resources and make every effort to deliver the project on time, with high quality and in an environmentally friendly manner,” he said.

Mr Yu thanked the Zambian Government, UCF and its partners, as well as other stakeholders, for their continued support.

He said cooperation between the Chinese engineering company and its Zambian partners reflected an ongoing commitment to industrial development and economic cooperation between the two countries.

Chinese Ambassador to Zambia Han Jing said the expansion of UCF’s urea plant would strengthen Zambia’s industrialisation, agricultural productivity and food security while deepening economic cooperation between Zambia and China.

Mr Han said the Phase II expansion demonstrated Chinese companies’ commitment to investing in Zambia and turning development ambitions into productive industrial capacity.

He said the project represented more than an increase in investment, as it would also support local enterprises and strengthen industrial supply chains.

Mr Han congratulated UCF and Wonderful Group on the expansion and thanked the Zambian Government, its ministries and agencies, and other stakeholders for supporting cooperation between the two countries.

He particularly thanked President Hichilema for attending both the launch of trial production at Phase I and the groundbreaking ceremony for Phase II, saying the President’s participation demonstrated strong support for practical cooperation between Zambia and China.

“From the successful operation of Phase One to the groundbreaking of Phase Two, it is far more than a simple sequence of development. It is tangible proof of development commitments taking root and grand visions transforming into real industry,” Mr Han said.

He said Wonderful Group’s expansion from packaging materials into fertilisers, building materials, energy, agriculture, mining and other sectors demonstrated the company’s growth and contribution to Zambia’s industrial development.

Mr Han said the industrial park represented an investment of more than US$300 million and had, within five years, developed into a manufacturing hub producing compound fertilisers, ammonia and urea, supported by energy supply and logistics infrastructure.

He said the complex provided more than 10,000 jobs and had become an important part of Zambia’s industrialisation drive through its modern equipment, facilities and management systems.

Mr Han said the Phase II expansion would create further opportunities across upstream and downstream industries, support local small and medium-sized enterprises and improve the resilience of industrial supply chains.

He said the project also prioritised environmentally responsible production, compliance with environmental and emissions standards, and partnerships with surrounding communities.

Mr Han said increased domestic fertiliser production would reduce Zambia’s dependence on imports, help conserve foreign exchange reserves and strengthen national food security.

He said reliable local fertiliser supplies would support the productive use of Zambia’s agricultural land, improve prospects for higher crop yields and contribute to better incomes for farming households.

Mr Han said the investment aligned with the Government’s Grow Zambia agenda, particularly its focus on agricultural revitalisation and the development of domestic manufacturing capacity.

He said Zambia’s improving business environment and support for manufacturing and agriculture had made the country an attractive destination for Chinese investment.

“Chinese enterprises bring ample capital, advanced technology and rich industrial expertise, while Zambia’s strengths, resources and development priorities complement these advantages,” he said.

Mr Han said the development priorities of the two countries were increasingly aligned, particularly in fertiliser production, energy, logistics, agriculture and industrial development.

He said President Hichilema’s re-election had strengthened confidence among international investors, including Chinese businesses.

Mr Han added that Chinese President Xi Jinping had congratulated Mr Hichilema on his re-election, with the two heads of state reaffirming their commitment to deepening cooperation and advancing agreed projects.

He said the fertiliser complex reflected China’s commitment to strengthening China-Africa cooperation under the outcomes of the 2024 Forum on China-Africa Cooperation Beijing Summit.

Mr Han said the partnership was based on mutual benefit rather than one-sided investment, with both countries sharing the benefits and responsibilities of development.

“This is not one-sided investment from China. It is mutually beneficial cooperation, where benefits are shared and risks borne in common,” he said.

He said China respected Zambia’s independence and its choice of a development path, adding that Beijing was ready to align its development experience and industrial strengths with Zambia’s resources and development priorities.

Mr Han said the two countries would continue working together in industrial upgrading, agricultural modernisation and infrastructure connectivity.

He expressed hope that more major projects would deliver tangible benefits to households across Zambia and strengthen the comprehensive strategic cooperative partnership between the two countries.

Acting Minister of Finance and National Planning Mulambo Haimbe said the growth of private-sector enterprises was critical to creating jobs, increasing government revenue and accelerating Zambia’s industrialisation agenda.

Mr Haimbe said the investment reflected the Government’s focus on growing the economy under the Grow Zambia agenda.

He said President Hichilema had given clear policy direction following his inauguration for a second term, placing economic growth at the centre of the administration’s priorities.

Mr Haimbe said economic growth was necessary to create employment opportunities, generate revenue for the Treasury and finance social and economic programmes.

He said increased revenue would also support the country’s industrialisation, agricultural and mining programmes.

“The answer lies in growing private-sector enterprises,” he said.

Mr Haimbe said expanding businesses created jobs, increased production and strengthened their contribution to government revenue.

He said UCF’s expansion demonstrated how private-sector investment could increase production capacity, employment levels and economic opportunities for Zambians.

Mr Haimbe said the Government was continuing to deepen economic reforms aimed at creating a favourable business environment and encouraging increased investment.

He said the Government’s objective was to transform Zambia from a producer and exporter of primary commodities into a net exporter of value-added goods by using locally available resources and increasing citizen participation.

Mr Haimbe said economic diversification away from copper and cobalt remained a key priority, while adding value to the two minerals would also contribute to that objective.

He said the UCF expansion was an important step towards achieving the Government’s industrialisation objectives and the broader Grow Zambia agenda.

President Hichilema highlighted UCF’s wastewater treatment and recycling system, saying other industries and economic sectors should learn from the company’s approach to managing water resources.

He said water recycling was becoming increasingly important as climate change placed greater pressure on water availability.

Mr Hichilema urged government officials to engage the company on how its water-management practices could be replicated elsewhere, including the reuse of wastewater and floodwater where technically feasible.

He also called for faster investment in the chemical industry, saying Zambia needed to move beyond exporting raw materials and develop industries capable of producing higher-value goods for domestic consumption and export markets.

The President cited the potential to use coal and other locally available resources to manufacture industrial products, including explosives required by the mining sector.

He said the development of such industries would create additional employment and business opportunities while strengthening domestic supply chains.

“We want to see more investments in the chemicals industry subsector to turn our raw material endowments into value-added products for the domestic market and for exports,” Mr Hichilema said.

He directed Cabinet members to engage relevant investors and identify associated industries that could be established quickly to build on existing investments.

Mr Hichilema said the Government’s economic development agenda was centred on accelerated growth driven by investment, trade and production, with job creation and business opportunities expected to follow.

He said the expansion of industrial activity would benefit not only people employed directly by companies but also transporters, distributors, suppliers and other businesses linked to their operations.

The President cited the potential for Zambian-owned trucking companies to secure contracts transporting fertiliser from the plant to markets across the country, including Kasama and Livingstone.

He said such opportunities demonstrated how major investments could support smaller businesses and expand economic activity beyond the immediate location of a project.

Mr Hichilema said the company was targeting 10,000 direct jobs, with additional employment expected through distribution, transportation and other supporting services.

He said the resulting income would support thousands of households and stimulate further economic activity.

The President urged Zambians to recognise major investments as opportunities for national development and called on citizens to protect and support productive enterprises.

“This is our company. Let’s support it. Let’s look after its investments. Let’s not destroy them,” he said.

Mr Hichilema linked the expansion of fertiliser production to the Government’s agricultural targets, including increasing national maize production to 10 million tonnes.

He said access to quality fertiliser was important to improving crop yields and strengthening food security, adding that farmers needed to apply fertiliser correctly to achieve better results from the land they cultivated.

The President called for the development and adoption of appropriate technologies to help small-scale farmers apply fertiliser more efficiently and uniformly.

He said improving productivity on existing farmland would help increase output without necessarily expanding the area under cultivation.

Mr Hichilema said Zambia had the potential to become a major producer, processor and exporter of agricultural products after meeting domestic food requirements.

He said private-sector investments in fertiliser production, combined with improved farming practices and quality agricultural inputs, could contribute to that objective.

Wonderful Group of Companies chief executive officer Huang Yaoch said the group planned to invest more than US$700 million in expanding its phosphate production project in Chilanga District as it strengthened its presence in fertiliser manufacturing and industrial development.

Mr Huang said the planned expansion would build on investments in a US$680 million urea fertiliser plant, which was already operational, and a second chemical fertiliser plant costing US$862 million, scheduled for commissioning next year.

He said the two plants represented a combined investment of approximately US$1.6 billion, demonstrating the group’s long-term commitment to Zambia’s industrial and agricultural potential.

Mr Huang said the company was also attracting investors interested in green industries and high-technology operations, which would further expand its activities in Zambia.

He said Zambia had the potential to become a major industrial and agricultural production hub for Central and Eastern Africa.

However, Mr Huang said the full benefits of the investments would depend partly on improvements to supporting infrastructure, particularly roads and logistics systems needed to move goods efficiently.

He said the company was pursuing infrastructure upgrades to improve connections to the industrial park, including routes serving the potassium plant and selected sections of the Mongu–Kalabo road.

Mr Huang said the proposed improvements were intended to reduce traffic congestion, shorten delivery times and facilitate the movement of goods.

He said the infrastructure projects would be implemented through the public-private partnership model, subject to the completion of the necessary financial and administrative arrangements. Under this model, the public and private sectors collaborate to deliver infrastructure, with their respective responsibilities and risks determined by the agreed terms.

Mr Huang said the company also intended to welcome international businesses, business delegations and strategic partners to showcase Zambia’s industrial capabilities and promote further investment.

He said the initiative would create opportunities to establish new partnerships and attract additional investors into the country.

Mr Huang acknowledged the role of banks and other financial institutions in supporting the group’s investments, saying their cooperation had been important in achieving the company’s milestones.

He further said Zambian professionals were increasingly taking up management responsibilities within the group, including senior operational and financial positions.

Mr Huang said the growing involvement of Zambians in the company’s management reflected its commitment to the local economy.

The company said its investments were intended to contribute to industrial development and strengthen Zambia’s capacity to support agricultural production.

President Hichilema pledged that the Government would continue improving the business environment and investing in infrastructure to support industrial expansion.

He cited provincial airports, roads and railway networks as important components of the infrastructure needed to move raw materials to factories and finished products to consumers.

Mr Hichilema said increased industrial production would place additional pressure on roads if bulk commodities continued to be transported mainly by trucks.

He called for improvements to railway infrastructure, including the revitalisation of Zambia Railways and the development of transport corridors such as the Tanzania-Zambia Railway (TAZARA), to facilitate the movement of coal, raw materials and finished goods.

He said rail transport could reduce pressure on roads while lowering the cost of moving bulk commodities.

The President also urged public officials to work more proactively with investors and avoid unnecessary delays in implementing projects.

Mr Hichilema said his administration’s priority was to serve Zambia’s 21 million citizens rather than seek the approval of a small number of public officials. He warned that delays in government projects and investments would not be tolerated.

He said he was prepared to become unpopular among some civil servants if that meant accelerating investment, creating jobs and improving the lives of ordinary Zambians.

“I don’t need popularity of 5,000 people. I need to satisfy 21 million Zambians,” he said.

The President said his focus was on fulfilling the mandate given to him by voters, whom he described as his employers.

“I know where my bosses are. You are the real bosses,” he said.

Mr Hichilema said delays in approving government projects and investments denied citizens employment opportunities and slowed national development. He warned that public officers who unnecessarily held up projects were frustrating efforts to attract investment and create jobs.

“This president in this second term will be ruthless about these issues. Anyone sitting on work, on projects, on investments will not be HH’s friend because you are delaying the job creation for those people there,” he said.

He urged citizens to speak out when public officers delayed projects, saying investors should not be subjected to lengthy administrative and procurement processes that could stretch for months or years.

“When you see public officers delaying projects, shout,” he said.

Mr Hichilema reiterated that his administration would prioritise decisions that benefited the majority of Zambians, even when those decisions proved unpopular with some individuals in the public service.

He said government institutions should identify potential private-sector partners and help move viable investments forward instead of leaving investors to navigate lengthy processes on their own.

The President said his administration would place greater emphasis on expediting investment decisions and resolving administrative obstacles that delayed job creation.

He maintained that the Government’s responsibility was to serve the wider population by promoting investments that generated employment, expanded businesses and improved livelihoods.

Mr Hichilema said economic development required continuous effort, urging government officials and the private sector to work consistently towards delivering investments and creating opportunities for Zambians.