Zambia has launched a US$1.6 billion expansion of United Capital Fertilizer’s industrial complex in Chilanga, Lusaka Province, in a project expected to increase domestic production of ammonia, urea and ammonium nitrate as the country seeks to reduce dependence on imported agricultural inputs and strengthen its position in Southern Africa’s fertiliser market.
The groundbreaking ceremony on 20 October 2026 was officiated by President Hakainde Hichilema and marks the next phase of investment at the site operated by United Capital Fertilizer Zambia Company Limited, a subsidiary of China’s Wonderful Group. According to the company, the expansion will add annual production capacity of 540,000 tonnes of ammonia, 520,000 tonnes of urea, 400,000 tonnes of ammonium nitrate and 50,000 tonnes of food-grade carbon dioxide. The company has not specified when the new facilities are expected to begin commercial operations.
The investment comes as Zambia’s demand for nitrogen-based fertilisers creates opportunities for domestic manufacturing. Trade Map data cited in the project information show that nitrogen fertiliser import volumes rose by 56.4% between 2021 and 2025, increasing from 433,000 tonnes to 681,000 tonnes. The associated import bill grew by 55.7% to US$436 million over the same period, highlighting the scale of the market that local manufacturers could seek to serve.
Urea accounted for the largest share of imports in 2025, at 367,000 tonnes valued at US$226 million. Ammonium nitrate ranked second, with 171,000 tonnes worth US$125 million. Together, the two products represented nearly 79% of nitrogen fertiliser import volumes and 80.5% of import value. The new production lines are therefore aimed at product categories that already have an established market in Zambia.
The expansion builds on UCF’s existing manufacturing operations in Chilanga. The company operates a compound fertiliser production unit and commissioned a urea plant in October 2025. The latest investment is intended to deepen its nitrogen fertiliser production capacity and broaden its product range, positioning the company to serve both domestic farmers and buyers in neighbouring countries.
For Zambia, greater local production could improve the availability of fertiliser and reduce exposure to disruptions in international supply chains. However, increased manufacturing capacity will not automatically translate into lower prices for farmers. The final cost of fertiliser also depends on feedstock prices, energy, transport, financing, distribution margins, import competition and the timing of supply relative to planting seasons. The impact on farm input costs will depend on whether locally manufactured products can compete with imported alternatives on price, quality and availability.
President Hichilema has linked the investment to the government’s broader industrialisation and agricultural development objectives. Zambia aims to raise annual maize production to 10 million tonnes, alongside targets for increased production of soya beans, wheat and sugar. Reliable access to fertiliser is one factor in achieving these ambitions, although crop output also depends on rainfall, irrigation, seed quality, soil management, access to finance and farmers’ ability to apply inputs efficiently.
The project also has implications for regional agricultural trade. UCF has reported exports to Tanzania, Botswana, Zimbabwe, the Democratic Republic of Congo (DRC) and Malawi. The company has previously documented a shipment of 15,000 tonnes of compound D fertiliser to Botswana in 2023 and a contract in 2024 for 61,000 tonnes of NPK fertiliser intended for tobacco cultivation in Tanzania. These transactions provide evidence of existing cross-border commercial activity, although they relate to different fertiliser products and do not establish the scale of future sales from the new nitrogen production facilities.
Regional trade could offer the company a broader customer base as production expands. Zambia’s location connects it to agricultural markets across Southern and Central Africa, but the competitiveness of exports will depend on transport costs, border procedures, product registration requirements, exchange rates and the ability to deliver reliably during peak agricultural seasons.
Logistics infrastructure will be important to that strategy. A newsletter from the International Fertilizer Development Center has referred to plans for a distribution platform in eastern Zambia to supply domestic customers and support exports to Mozambique and Malawi. Mozambique could provide an additional route to regional markets, but the available information does not confirm that UCF has secured commercial supply contracts there. The proposed logistics investment should therefore be viewed as part of the company’s distribution ambitions rather than evidence of established export volumes.
The project is also expected to contribute to employment and supporting economic activity. During the groundbreaking ceremony, the Zambian government said the expansion could generate around 10,000 direct jobs, alongside indirect opportunities in transport, distribution, retail and agricultural supply chains. These are projected outcomes, not jobs already created, and the ultimate employment impact will depend on the construction schedule, staffing requirements and the scale of the facilities once operational.
The scale of the investment places environmental management and industrial infrastructure among the issues that will shape its delivery. Fertiliser manufacturing can require substantial energy and water, while ammonia production and the handling of industrial chemicals require robust process safety and emissions controls. Chilanga Town Council previously reported that an environmental and social impact assessment process was being undertaken for the proposed expansion, with stakeholders raising the need to manage emissions and other environmental impacts affecting nearby communities.
The project also includes capacity for food-grade carbon dioxide, which can serve applications in food processing and other industries. Its eventual commercial value will depend on production specifications, quality assurance and demand from buyers. The company has not yet provided a commissioning timetable for the additional production lines, making construction progress and the development of supply arrangements important indicators to watch.
For Zambia’s agricultural sector, the expansion presents an opportunity to link industrial investment with domestic input supply and regional trade. Yet the benefits will depend on whether new capacity can operate competitively, whether distribution systems can reach farmers at the right time and whether the additional output can secure stable demand in neighbouring markets.
The US$1.6 billion project is a significant addition to Zambia’s fertiliser manufacturing ambitions, but its contribution to food security and import substitution will ultimately be measured through operational output, product affordability, dependable supply and export performance. As the facilities move from groundbreaking to construction and commissioning, those measures will show whether increased production capacity can translate into stronger agricultural value chains and a more competitive regional fertiliser industry.
