Wednesday, November 13, 2024

Government to recapitalise the Nitrogen Chemicals of Zambia with K25 billion

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Agriculture minister Emmanuel Chenda
Agriculture minister Emmanuel Chenda

GOVERNMENT says it will recapitalise the Nitrogen Chemicals of Zambia, to the tune of K25 billion by rehabilitating the nmmonium nitrate plant in a bid to create jobs.

Minister of Agriculture Emmanuel Chenda, says rehabilitating the plant will help to cut costs on buying fertiliser even though he has not given a time frame.

Mr Chenda told the Daily Mail that the recapitalising will ease the company’s financial woes and help it create quality jobs for the people of Kafue.

He said government was unable to find an equity partner after attempts to privatise the fertiliser company failed.

“You may be aware that we were looking for an equity partner and when we could not find one, we wouldn’t let the company go to waste. We are looking for funds to recapitalise the firm,” he said.

Mr Chenda said government cannot allow the company to degenerate as it is viable and can easily be functional, with the necessary financial input in place.

He said the fertiliser plant will be able to supply ammonium nitrate to the mining sector where a new market has emerged.

And Mr Chenda said government awarded Nyiombo Investments a tender to supply fertiliser for the Farmer Input Support Programme after a transparent bidding process.

He said some people who dealt with company in the past were corrupt and bought fertiliser at exorbitant prices when they could have got it at a much lower price.

Government will save K94 billion in the procurement of fertiliser for the FISP, compared to what it spent last year.

“We are not corrupt ourselves. You can go through the bidding process and you will find that it was transparent and government was able to save a lot of money,” Mr Chenda said.

[Zambia Daily Mail]

11 COMMENTS

  1. Good move, rehabilitate it quickly & let us process engineers stabilize the operations and optimize the plant

  2. Best news for the last 6 months in as far as Zambia’s industry’s revival is concerned. Now we must move on zambia railways.

  3. HAVE THEY SOLVED THE REAL ISSUES WITH THIS PLANT COZ IT NOT THE FIRST TIME GOVT IS DROPPING MONEY IN THIS BOTTOMLESS PIT FOR POLITICAL REASONS.

  4. Mwanawasa spent 20 billion on this old corroded plant, and all if it went to the drain plug.

    This Plant is corroded and all we need is a new plant all togather

  5. Stop living in Kaunda days of Mansa Batteries, Luangwa Industries, mwinilunga cannery, Kapiri Glass etc. Times have changed. For twenty years we have been hearing the same story. Equity partner, privatization, recapitalization etc. If it was viable industry, then why are you contradicting yourself. One minute you are saying you will pump in money to re-awaken it, then the next minute you are saying that the fertilizer will be sourced elsewhere. Wake up dude. That dinosaur will never brief again. It’s just too OLD! Just dismantle it and sell it as scrap metal across to Trade kings. Then either put up a modern fertilizer plant or ask the PF cadres to distribute the land as residential plots.

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