THE country’s sovereign wealth fund, the Mutapa Investment Fund (MIF), is seeking regulatory approval to issue a fertiliser bond aimed at raising working capital for fertiliser companies under Chemplex Corporation.
The companies include Zimbabwe Phosphates (ZimPhos), Dorowa Minerals, the Zimbabwe Fertiliser Company (ZFC) and Sable Chemicals.
Chemplex is owned by the Industrial Development Corporation, which falls under the MIF.
This was revealed by Mr Tatenda Chimusoro, head of the Agriculture and Industrials Cluster at MIF, during last week’s tour of fertiliser manufacturing companies by the Parliamentary Portfolio Committee on Industry and Commerce, chaired by Zaka South legislator Cde Clemence Chiduwa.
“We are putting a structure that we have approved for Chemplex, for them to access US$25 million for the self-regressive plant and also for them to complete the granulator.
“And at the same time, in terms of working capital, we are in the process of getting approvals from the Insurance and Pensions Commission and the Ministry of Finance for issuing the fertiliser bond for the whole group of companies within Chemplex.
“So, those are some of the initiatives that we are undertaking in support of the companies. But obviously, we will not forget issues to do with governance as well,” Mr Chimusoro said.
He added that the fund was also restructuring Chemplex and had hired consultants to spearhead the exercise.
“Like I said, we are in the process of restructuring, and we are working with some consultants through the Ministry of Finance. We also have a term sheet with Afreximbank for US$20 million – US$15 million for ZimPhos, US$3 million for ZFC and the remainder for Chemplex Marketing,” he said.
For medium- to long-term plans, Mr Chimusoro said MIF was working with Afreximbank on feasibility studies to transform Dorowa Minerals into a regional hub for fertiliser production.
“So, those are the initiatives we are currently seized with, and it is our hope that we will be able to support Chemplex immediately for the summer season.
“In the medium term, it is our hope that the Dorowa plant will be up and running. We are managing it closely and working with the new management to ensure progress,” he added.
Zimbabwe has a combined fertiliser production capacity of 1,5 million tonnes, but can only produce up to a fifth of that capacity.
The industry, which includes phosphate mining and the manufacture of various fertilisers, faces serious challenges, particularly funding constraints.
These have limited output and increased reliance on imports, as well as raw materials such as potash and sulphuric acid components.
Currently, the country imports about 75 percent of its fertiliser requirements.
The fertiliser industry is critical to agriculture, which contributes 12 percent of the country’s gross domestic product
