Moroccan phosphates group OCP Group SA is reported to be set to hold fresh talks with Tanzania’s government to establish a fertilizer blending plant in the East African country.
The proposed plant is planned to be located in Kisarawe, some 30 kilometers southwest of Tanzania’s capital, Dar es Salaam, according to a report by Morocco World News.
The report cited the Tanzanian news outlet The Citizen quoting the country’s Minister of Agriculture Anthony Mavunde saying the two countries are expected to start talks for “setting up a blending facility in Kisarawe.”
OCP previously has indicated plans to set up a fertilizer blending unit in Tanzania as part of its roll-out of new blending units in several Sub Saharan African countries (GM March 8, 2019), but has not directly confirmed this latest initiative.
News of the potential project comes amid the Tanzania government’s reassurances to tackle the country’s food security crisis.
The Citizen reported the government has provided the state-run Tanzania Fertiliser Co (TFC) with Sh6 billion in capital in a bid to revive the company and “ensure a sufficient supply of fertilizers at reasonably lower than market prices.”
TFC stopped participating in the sale of fertilizers some eight years ago, and this week the government launched the distribution of fertilizers at a subsidized price.
The fertilizer company reportedly will now be able to import 25,000 mt of fertilizers, to be distributed to various parts of the country.
According to the report, a total of 2,700 mt of urea initially will be distributed at a subsidized price, with the aim of targeting to distribute 8,100 mt between now and the end of April.
Tanzania can only produce 10% of its annual demand for fertilizers, which the report puts at 430,000 mt/y, citing official data.