Uganda, which has East Africa’s third-largest economy, is seeking new investors for a stalled phosphate project focused on domestic fertilizer production, according to a Bloomberg report citing President Yoweri Museveni’s recent comments to lawmakers in Kampala.
The country wants a new backer after the initial Chinese promoters have struggled with financing for the 300,000 mt/y fertilizer project. Progress had halted as the COVID-19 pandemic froze access to loans.
Guangzhou Dongsong Energy Group said it planned to invest $620 million on production units for fertilizers, sulfuric acid, steel, and cement at its Sukulu development in the Tororo District (GM Feb. 12, 2016). Fertilizer production was initially planned to start in 2018.
“I have written to the president of China to get me another investor if the other one has problems, or, if not, I will get another solution,” said Museveni. “There are a number of offers,” he said without providing details.
Local output of fertilizer is key to increased productivity in the country, which relies on minimal use of the chemical and irrigation in its agricultural sector.