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Tanzania as potential pioneer in Fertilizer Production in East Africa

12.03.2018  14:07

Finally, a long waited breakthrough in the Gas[1] to fertilizer factory worth US $ 1.92 bill was experienced as the planned investment by the consortium of Ferrostaal, Haldor Topsoe and Fauji (from Germany, Denmark and Pakistan respectively) received high-level attention and support this weekend.

Addressing the public at the launch of the CRDB Bank[2] branch – Chato, the President of Tanzania, Dr.John Magufuli, welcomed the Danish (and co) investors to finalize the remaining issues towards binding commitments regarding the future investment in a fertilizer plant in Kilwa Masoko.

Other partners in the consortium are Minjingu Mines in Arusha as local off-taker and equity shareholder in the plant and the Tanzania Petroleum Development Cooperation (TPDC).

An important highlight is that the plant will be a pioneer of the manufacture of urea in East Africa, making Tanzania a leader in fertilizer manufacturing from the world’s leading technology providers and capable partners.

Local production of gas will significantly contribute to Tanzania’s green revolution[3], which is a necessary factor for the country’s industrialization agenda. Furthermore, the country stands to gain more than 4000 direct jobs, revenue, and export earnings, among other things.

The consortium is on a stand-by basis to further discuss and agree with the government of Tanzania on pending issues and to find a suitable way forward that suits both the Tanzanians, the consortium and all stakeholders in general.

Therefore, the gesture by the Tanzanian President is a positive sign and encouragement for all stakeholders.

Link to original article: The Guardian

Watch President Magufuli commenting on Danish contribution to the fertilizer plant  




[1] Tanzania has recently discovered large quantity of gas in southern regions.

[2] CRDB bank is one of the successful local bank in Tanzania, which for the past 25 years received tremendous capital and technical support from Denmark. Initially designed to serve Cooperatives and rural development.

[3] Through expected increase in fertilizer consumption in Tanzania. The World Bank estimates an average of 3.7 kilograms per hectare of land in the country.