President Hakainde Hichilema has broken ground for the US$1.6 billion Phase II expansion of United Capital Fertilizer’s ammonia and urea plant in Chilanga District, a major investment expected to boost local fertiliser production, create jobs and strengthen Zambia’s agricultural sector.

The expansion is expected to increase direct employment at the facility from 7,400 to 10,000 jobs upon completion, while enhancing the country’s capacity to produce essential agricultural inputs for local farmers and regional markets.

The investment aligns with the Government’s flagship Grow Zambia Agenda, which aims to transform agriculture into a key driver of economic growth, food security, employment and export earnings.

Under the agenda, Zambia targets annual production of 10 million metric tonnes of maize, three million metric tonnes of soya beans, and one million metric tonnes each of wheat and sugar by 2031.

The expanded plant is expected to improve the availability of ammonia and urea fertilisers, reduce reliance on imports and strengthen the country’s resilience to disruptions in international supply chains.

United Capital Fertilizer’s reported role as a net exporter of fertiliser to the region also highlights Zambia’s growing potential to become a regional hub for fertiliser manufacturing and trade, with opportunities to generate foreign exchange and stimulate related sectors such as transport, logistics and distribution.

The project underscores the role of private-sector investment in supporting agricultural transformation and industrial development.

With increased domestic fertiliser production, Zambia is seeking to strengthen support for farmers, improve crop yields and advance its ambitions of achieving food security while expanding agricultural exports.