Fertiliser duty free imports still allowed

GOVERNMENT has extended the importation of fertiliser by companies and individuals as the sector is still at revitalisation stage, the Ministry of Industry and Commerce has said.

Last year, the Cabinet allowed farmers with free funds to freely import fertilisers directly as local suppliers had shortfalls as they battled to cope with the increasing demand during the planting season.

Government gave permission for companies and individuals to import the products up to 31 December 2023 without the requirement of an import licence.

Dr Thomas Utete Wushe

However, it did not apply to commercial imports.

The extension comes as the Government is set to establish a subcommittee under the Ministry of Finance, Economic Development and Investment

Promotion, which is meant to look at the financing of local fertiliser manufactures in a bid to improve production to meet local demand.

From October, the Ministry said it had processed 63 fertiliser applications amounting to a total of 223 356 tonnes.

According to the Ministry of Industry and Commerce, the fertiliser supply versus demand analysis in November 2023 shows that the annual demand for NPK was 400 000 tonnes whilst the annual supply was 297 600 tonnes, with a supply deficiency of 102 000 tonnes.

In regards to top dressing, the annual demand was estimated at 380 000 tonnes versus an annual supply of 141 000 tonnes, thus a negative variance of 265 900 tonnes.

Therefore, there is a combined shortage of 368 300 tonnes recorded from a total of 780 000 tonnes.

Responding to Business Chronicle, Ministry of Industry and Commerce Permanent Secretary Dr Thomas Utete Ushe said imports of fertilisers are still being allowed as the sector is still at revitalisation as fertilisers are in demand.

“As a way forward, a dedicated subcommittee to look at the financing part led by the Ministry of Finance, Economic Development, and Investment Promotion is set to be established as a way of supporting the much-needed funds by the local fertiliser manufacturers,” he said.

Fertiliser value chain is one of the ten priority value chains under National Development Strategy 1 (NDS 1), moving the economy up the value chain.

The 10 priority value chains are more focusing on the agricultural sector as Zimbabwe is an agro-based economy. These include fertiliser, soya, cotton to clothing, sugar, dairy, leather, pharmaceuticals, iron and steel amongst others.

Government revitalising the local fertiliser industry is part of Government measures to accelerate the implementation of the Five-Year Fertiliser Import Substitution Roadmap (2020-2024).

The roadmap largely focuses on ramping up production at Sable Chemicals and Chemplex Phosphate to reduce fertiliser imports.

In a good season, the country requires about 600 000 tonnes of fertiliser while basal compound fertilisers constitute 350 000 tonnes with the remainder being AN. – -chronicle