US$2,9m allocation boosts Sable Chemicals production

THE country’s sole Ammonium Nitrate (AN) fertiliser producer, Sable Chemicals, has managed to ramp up production to ensure adequate product supply after accessing US$2,9 million from the foreign currency auction trading system.

Industry and Commerce Minister, Dr Sekai Nzenza, revealed the development in her latest manufacturing performance report, which also outlines key milestones recorded by the sector so far this year.

Despite the adverse impact of Covid-19, the local manufacturing sector has stood its ground, having consolidated market share during the lockdown period, which halted higher dependence on imports.

Sable Chemicals is one of the local companies that have been struggling to keep afloat as it faced numerous challenges such as lack of forex to import raw material and inadequate working capital amid pressure from imports.

Since the launch of the forex auction system in June this year, Dr Nzenza said Sable Chemicals is now one of the success stories.

“The auction system has assisted the company to get foreign currency for importing ammonia gas from South Africa under the 30 000 tonne fertiliser supply agreement,” said Minister Nzenza.

She said the company had so far produced more than 9 000 tonnes and had been allocated US$2,9 million between September and now.

“This will enable them to produce 7 000 tonnes of AN during the two months of October and November 2020. They produced 2 700 tonnes of AN in October and this month that target is to produce
4 300 tonnes,” said Dr Nzenza.

The Government has made an undertaking to continue supporting Sable Chemicals as the company is strategic in driving import substitution in the fertiliser sector.

The company also plans to diversify into dairy farming as part of efforts to expand business to other divisions of the agriculture sector.

The Kwekwe-based company has already started producing agro-chemicals, pesticides and insecticides. Through its Sable Farm, the company is training farmers drawn from the mining town and its surroundings on the Intwasa/Pfumvudza farming programme, a key intervention by Government and its partners towards enhancing food security.

The training is being done under a partnership between Sable Chemicals and the Government and has so far benefited 30 farmers. It is expected to spread to other parts of the province.

Sable Chemicals board chair, Dr Shingi Mutasa, has hinted that over the next five years, more projects will be rolled out that will make Sables one of the biggest dairy producers in the region.

He said Sable Chemicals was looking at the creation of other agro-processing products that can utilise the land that sits around the Sable Chemicals plant. Dr Mutasa has paid tribute to the Government for continued support to the company, which has seen a marked improvement in production. Sable Chemicals has a plant that can produce 240 000 tonnes .-chronicle.cl.zw