United Capital Fertilizer of Zambia and Tanzania Fertilizer Company Finalize Major Supply Contract to Support Tobacco Farming

Zambia United Capital Fertilizer Tanzania Fertilizer Company Agreement

On August 23, 2024, United Capital Fertilizer Zambia Company Limited (UCF) and the Tanzania Fertilizer Company (TFC) finalized a significant contract for the procurement of 61,000 metric tons of NPK fertilizer, set to support the 2024/2025 tobacco farming season.

The agreement was signed by TFC’s Managing Director, Mr. Samwel Mshote, and UCF’s CEO, Mr. Huang Yaochi, with the presence of Tanzania’s Minister of Agriculture Hon. Hussein Bashe, the Deputy Permanent Secretary Dr. Suleiman Serera, and Mr. Joel Laurent, Executive Director of the Tanzania Fertilizer Regulatory Authority.

UCF explained that this partnership enhances Zambia’s export potential while ensuring that Tanzanian tobacco farmers have access to high-quality fertilizer, ultimately improving crop yields and supporting economic growth in both countries.

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The fertilizers are scheduled to arrive in Tanzania starting August 26th, 2024, and will comply with TFRA standards, reinforcing agricultural productivity in the region.

Mr. Huang Yaochi expressed enthusiasm about this collaboration, stating, “We are excited to take another significant step toward achieving our commitment to fertilize Africa. We extend our heartfelt gratitude to Tanzania for placing their trust in the UCF brand for the second consecutive year.”

Fertilizers Use in Tanzania

Fertilizer use in Tanzania remains low, with an average consumption of approximately 15.858 kilograms per hectare of arable land as of 2018. Many farmers apply less than 9 kilograms per acre, primarily due to concerns about the quality of available products and the prevalence of counterfeit fertilizers in local markets.

Tobacco farming is a significant contributor to Tanzania’s economy, with many smallholder farmers relying on it for their livelihoods. Fertilizers are crucial for enhancing crop yields in this sector, and the government recommends applying around 50 kg of urea and 50 kg of DAP per acre for optimal production. However, actual usage often falls short of these recommendations.

The total demand for fertilizers in Tanzania is estimated to be around 91,000 tons, highlighting the market potential for suppliers.

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