Minister of Agriculture Sam Kawale has said government’s fertiliser manufacturing plant project is still on the cards despite that construction has not started over a year past its scheduled completion time.
Asked on progress of the project on Thursday, Kawale said discussions on the project feasibility studies are underway, adding that construction will be dependent on finalisation of feasibility studies, securing of financing, and completion of necessary regulatory processes.
H e s a i d g o v e r nme n t will provide a more prec i se timeline once the preparatory stages have been completed.
Said Kawale: “The delay is largely attributable to the intricate nature of large-scale industrial projects, which necessitate meticulous planning, robust financial structuring, and adherence to international best practices.”
He said the focus on the project is to produce inorganic fertilisers to boost food security and stabilise fertiliser prices for farmers, but added that government is also exploring opportunities to integrate organic fertiliser production.
On whether the project will be solely owned by government, Kawale said the preferred model is a public-private partnership (PPP), but that a funding strategy is being developed to ensure that the project is fully capitalised.
He said government is also keen to see other players develop fertiliser manufacturing plants, including private sector stakeholders that are producing organic and inorganic fertilisers.
In his remarks, Parliamentary Committee on Agriculture chairperson Sameer Suleman lamented the delay in the construction of the fertiliser plant, saying it is affecting the country’s capacity to achieve food security.
He said the plant would have helped address high cost of fertilisers and other challenges related to fertiliser access.
“The whole agriculture sector would have been transformed if we had the fertiliser plant,” said Suleman.
Agriculture expert Tamani Nkhono- Mvula said the fertiliser manufacturing plant project is a viable project, adding that having the facility locally would enhance food security in the country.
He said the good part about having the plant is that it will produce fertiliser in line with the soil conditions of the country and farmers can also be engaged on the needs.
“If you look at the fact that fertiliser can be produced close to the farmer, the logistics of transporting the fertiliser and risks involved in transporting that fertiliser will drastically reduce and that can help to reduce the prices,” said Nkhono-Mvula.
However, he said producing locally is not a guarantee that prices will be cheaper as there are a number of factors that contribute to price.
“The other thing is also issue of capacity to be able to produce because to produce fertiliser is that you need huge amount of electricity, which I am not sure if Malawi has that kind of electricity that may be needed but also the expertise that goes with production of fertiliser. There are a number of factors to consider,” he said.
Government has been struggling to import fertiliser due to foreign exchange challenges and the rise in the price of the commodity on the global market, and in April 2021, the ministry had indicated that the fertiliser plant would be functional by December 2023.
