President Hakainde Hichilema has praised United Capital Fertilizer (UCF) for its continued investment in Zambia following the groundbreaking ceremony for a US$1.6 billion urea plant expansion at Wonderful Industrial Park in Chilanga District. The project is expected to strengthen the country’s fertilizer production capacity, create employment opportunities and support agricultural productivity. The investment also reflects the growing importance of industrial development in Zambia’s efforts to expand its economy, attract foreign capital and reduce reliance on imported products. President Hichilema said the scale of investment demonstrated confidence in Zambia as a destination for business and industrial growth. He also called for stronger cooperation between the public and private sectors to ensure that investments translate into jobs, business opportunities and lasting economic benefits for citizens.
During the ceremony, President Hichilema commended UCF for transforming what was once a rocky farm area into a major industrial site. He said the development demonstrated what sustained investment and confidence in the country could achieve. The President thanked the company for continuing to expand its operations in Zambia and contributing to the development of the manufacturing sector. He noted that successive governments had worked to market Zambia as an investment destination, but his administration intended to pursue investment promotion more aggressively. The aim, he said, was to attract additional capital into productive sectors, stimulate economic activity and create more opportunities for Zambians.
The US$1.6 billion urea plant expansion represents a significant investment in Zambia’s fertilizer industry. UCF already produces Compound D fertilizer and has expanded its operations into top-dressing fertilizers, including urea and ammonia. These products play an important role in supporting crop production by supplying nutrients needed for plant growth. Increasing domestic fertilizer production could strengthen the availability of agricultural inputs for farmers and help the country respond to changing demand during planting seasons. However, the full impact of the expansion will depend on the project’s implementation, production capacity, product quality and the ability to distribute fertilizer efficiently across the country.
President Hichilema also recalled UCF’s commitment to invest up to US$5 billion in Zambia by 2030. He expressed confidence that the company could achieve this target ahead of schedule if its current pace of investment continued. Such an investment programme would represent a substantial commitment to Zambia’s industrial development and could support growth across several connected sectors. The President’s remarks highlighted the Government’s expectation that major industrial projects should contribute to wider economic activity rather than operate in isolation. Continued investment could create opportunities for local suppliers, transport companies, construction businesses and other enterprises that provide goods and services to the fertilizer industry.
Job creation was another major focus of the President’s address. He noted that UCF’s investments had already created thousands of direct jobs and highlighted the company’s target of employing 10,000 people directly. Beyond factory employment, the expansion could support additional opportunities in fertilizer distribution, trucking, trading and other supply-chain activities. These businesses are important because industrial investment can generate employment both within a production facility and among companies that help move products to customers. President Hichilema emphasised that UCF was a Zambian company employing Zambians, underscoring the importance of investments that expand opportunities for citizens. Achieving the stated employment target will depend on the scale of the company’s operations, its workforce requirements and the pace at which planned projects become operational.
The President also highlighted the importance of Zambia’s relationship with China in supporting economic cooperation and investment. He described the relationship as a comprehensive, strategic and cooperative partnership that continued to deepen. He expressed appreciation to Chinese President Xi Jinping and the Chinese Government for their support. His remarks placed UCF’s expansion within the wider context of Zambia’s efforts to attract international investment and strengthen industrial cooperation. The Government’s challenge will be to ensure that partnerships with international investors deliver measurable benefits through employment, skills development, technology transfer and increased economic activity within Zambia.
Environmental sustainability also featured prominently in President Hichilema’s remarks, particularly in relation to UCF’s wastewater management system. He cited the company’s approach of extracting underground water, treating it and recycling it for reuse as an example of industrial water management. This approach can help reduce demand for fresh water when properly designed and maintained. The President said such practices were increasingly important as climate change and water scarcity placed greater pressure on available resources. He encouraged other industries and the Lusaka Water Supply and Sanitation Company to learn from the technology and explore opportunities to recycle greywater and floodwater where technically suitable and safe. Expanding water reuse could help industries manage water risks while supporting more responsible use of the country’s resources.
President Hichilema further stressed the need to accelerate investment in Zambia’s chemical industry. He said discussions with the engineering, procurement and construction contractor and UCF Board Chairperson Chance Kabaghe had reinforced the importance of developing this sector. Chemical manufacturing supports several industries, including agriculture, mining and manufacturing, by supplying essential industrial inputs. The President noted that coal was increasingly being used for purposes beyond electricity generation, including through cleaner coal technologies that can support the production of urea and explosives required by the mining sector. Developing these industrial capabilities could create opportunities to process more raw materials locally and expand domestic manufacturing. At the same time, the long-term success of such investments will depend on production costs, reliable infrastructure, environmental management and demand for the finished products.
The President also called on Cabinet to prioritise projects under the Grow Zambia Agenda, which seeks to accelerate economic growth through investment and trade. He stressed that Government policies should support productive economic activity and encourage businesses to invest in sectors capable of generating employment and expanding commercial opportunities. This approach places private investment at the centre of efforts to increase production, strengthen industries and create a wider range of income-generating activities. For the agenda to deliver meaningful results, investment commitments must translate into completed projects, functioning businesses and sustainable jobs. Government agencies will also need to coordinate their work to ensure that businesses can access the infrastructure, services and regulatory environment required to operate effectively.
Agriculture remains another important area expected to benefit from increased fertilizer production. President Hichilema said improved access to fertilizer, supported by assured quality, correct weight and products suited to different soil types, was helping to improve agricultural productivity. He linked these efforts to Zambia’s target of producing 10 million tonnes of maize, alongside the production of high-grade seed. Fertilizer can support crop yields when farmers apply suitable products at appropriate rates and combine them with good farming practices. Reliable access to quality inputs is therefore important for farmers seeking to improve output and manage production costs. Nevertheless, achieving the national maize target will also depend on rainfall, irrigation, seed quality, farming methods, access to finance and the wider conditions affecting agricultural production.
Infrastructure development was another priority highlighted by the President as he reaffirmed Government’s commitment to creating a conducive environment for business. He identified investments in provincial airports, roads and railways as important elements of the infrastructure needed to support industrial expansion. Reliable transport networks allow companies to move raw materials to factories and deliver finished products to domestic and export markets. For a fertilizer producer, efficient logistics can influence the final price of products and determine how quickly supplies reach farmers in different parts of the country. President Hichilema stressed that bulk cargo, including coal and fertilizer, should increasingly be transported by rail to reduce damage to roads and lower transportation costs. Improving freight efficiency could also ease pressure on road networks while supporting trade and industrial development.
The President called for stronger public-private partnerships to rehabilitate and modernise Zambia Railways and improve other transport corridors. He said efficient logistics were essential for supporting investment, trade and broader economic growth. Rail transport can be particularly useful for moving large quantities of heavy goods over long distances, provided the railway system offers reliable services and competitive costs. Better coordination between Government and private businesses could help mobilise investment for infrastructure upgrades and improve the movement of industrial and agricultural products. Such partnerships would need clear responsibilities, effective oversight and sustainable financing to deliver lasting improvements. For UCF and other industrial investors, stronger transport links could help reduce operating costs and improve access to markets.
The groundbreaking ceremony for UCF’s US$1.6 billion urea plant expansion highlights Zambia’s ambitions to attract investment, increase domestic manufacturing and strengthen the link between industry and agriculture. President Hichilema’s remarks placed particular emphasis on job creation, fertilizer availability, sustainable water management, chemical production and infrastructure development. The company’s longer-term investment pledge also points to the potential for further industrial expansion if planned projects proceed as expected. However, the broader economic benefits will depend on implementation, local employment, reliable distribution networks and the ability of businesses to operate competitively. As Zambia pursues its Grow Zambia Agenda, the key measure of success will be whether investments of this scale deliver tangible improvements in production, employment, agricultural productivity and economic opportunities for citizens.