President Hichilema Urges Rapid Growth, Launches UCF Fertiliser Expansion

President Hakainde Hichilema has called for accelerated economic growth driven by private sector investment, saying increased investment, industrialisation and trade are key to creating jobs, boosting business opportunities and strengthening national food security.

Speaking during the groundbreaking ceremony for the United Capital Fertilizers (UCF) Urea Plant Expansion Project in Chilanga today, President Hichilema warned against bureaucratic delays that discourage investment and pledged firm action against public officials who frustrate investors.

The President praised UCF and its parent company, Wonderful Group, for transforming a previously undeveloped area into a major industrial hub, describing the investment as a model of Zambia’s industrialisation agenda and value-addition drive.

Mr. Hichilema said economic growth remains the country’s top priority because it generates employment, expands business opportunities and improves household incomes.

He noted that the project is expected to create about 10,000 direct jobs and significant indirect opportunities for transporters, agro-dealers and other businesses involved in the fertiliser value chain.

The President reiterated the need for Zambia to maximise value from its natural resources by processing minerals locally instead of exporting raw materials. He cited coal resources in Sinazongwe and Mamba as key inputs for the production of fertiliser and other industrial products.

Mr. Hichilema also expressed concern over the increasing movement of heavy cargo by road, saying it is accelerating damage to infrastructure. He said Government is working to rehabilitate Zambia Railways and the Tanzania-Zambia Railway Authority (TAZARA) to shift bulk cargo transportation from roads to rail.

On environmental sustainability, the President commended UCF for investing in wastewater recycling technology and urged industries and water utility companies to adopt similar water conservation measures in response to growing climate-related water challenges.

He further thanked China for continued economic cooperation and applauded the local banking consortium led by Absa Bank Zambia for financing large-scale private sector investments.

The Head of State directed the Zambia Development Agency and relevant ministries to speed up investment approvals and strengthen public-private partnerships, stressing that delays in processing investment projects directly affect job creation.

President Hichilema reaffirmed Government’s commitment to maintaining a stable and business-friendly environment and said increased local fertiliser production would support agricultural productivity and help Zambia achieve its target of producing 10 million tonnes of maize annually.

United Capital Fertilizer (UCF) says its multi-billion-dollar expansion project will significantly boost Zambia’s fertilizer and industrial production capacity, adding 540,000 metric tonnes of ammonia, 520,000 metric tonnes of urea, 400,000 metric tonnes of ammonium nitrate, and 50,000 metric tonnes of food-grade carbon dioxide annually.

Board Chairperson Chance Kabaghe said the project aligns with the government’s private sector-driven economic agenda and will support five pillars of the 10-3-1-1 Grow Zambia Agenda, which targets increased maize, soybean, wheat, sugar, and beef production.

“A key benefit is job creation, with the expansion expected to generate about 3,000 construction jobs and 2,500 permanent positions once operational. To address skills gaps, UCF has partnered with the Copperbelt University (CBU) to offer chemical engineering internships, student sponsorships, and infrastructure support,” he said.

Mr. Kabaghe noted that UCF, which already produces 800,000 metric tonnes of NPK fertilizer and 300,000 metric tonnes of urea annually, has helped position Zambia among the few integrated urea producers south of the Equator through local production. He emphasized that the expansion will improve access to affordable, quality fertilizer, strengthen food security, and expand exports to regional markets.

Speaking at the same occasion, Chinese Ambassador Han Jing hailed the groundbreaking of UCF’s Phase II Urea Plant as a major milestone in Zambia’s industrialization agenda and a testament to growing Zambia-China economic cooperation. He noted that the Wonderful Group industrial park, with investments exceeding US$3 billion, has evolved into an integrated manufacturing hub producing compound fertilizer, synthetic ammonia and urea, while supporting energy generation, logistics services and over 10,000 jobs.

The ambassador said the expansion would help Zambia reduce fertilizer imports, save foreign exchange, enhance food security and improve farmers’ productivity and incomes. He further highlighted that the facility has been developed to advanced environmental standards, balancing industrial growth with sustainable production.

Mr. Han also revealed that Wonderful Group will later this month showcase its Zambian industrialization model at the World Trade Organization’s 10th Global Review of Aid for Trade in Geneva. He attributed the company’s continued investment to Zambia’s improved business climate and reaffirmed China’s commitment to mutually beneficial cooperation that aligns with Zambia’s modernization and long-term development goals.