Agrobiotech of Russia and the Zambian government sign deal to set up fertiliser plant in Kapiri Mposhi, Central Province
Speaking during the signing ceremony in Lusaka recently, Commerce, Trade and Industry minister Felix Mutati said the transaction which is valued at $20mn, was critical to the increased production of fertiliser in the country.
The Russian investor had responded to the request from the Zambian government to increase production capacity and reduce costs of fertiliser, Mutati added.
“The technology that Agribiotech are bringing in the country will enable us increase production on one side at the same time reduce the cost of production. This technology is potable and we hope you will be able to open up plants in other parts of the country,” the minister elaborated.
Agriculture was an important sector for Zambia which needed investment for sustainability and government incurred huge costs in ensuring that it produces enough food for the country. Once the plant was completed, it would complement government’s efforts in providing inputs for the farmers.
“This investment means we are diversifying from mining. In order to have a balance in the economy, we need diverse sources of investment,” Mutati said.
And Agrobiotech chairman Dr Vladmir Petrov, said the plant would be completed in time for the 2011 – 2012 farming season.
“Construction of the plant will take two to three months. We expect the production of fertiliser to start in time for the next farming season. We also hope that food security will be achieved because of the new plant,” said Dr Petrov.
By Nawa Mutumweno