Michael Magoronga Midlands Bureau
Sole Ammonium Nitrate (AN) manufacturer, Sable Chemicals, requires US$12 million to be able to import raw materials and produce adequate fertiliser stocks for the coming farming season.

This emerged during a recent familiarisation tour of the company by the Parliamentary Portfolio Committee on Industry and Commerce. In his presentation, Sable Chemicals chief executive officer Mr Bothwell Nyajeka, said they were facing production challenges due to insufficient foreign currency supplies.

“Sable is currently producing AN from ammonia gas imported from South Africa. But the challenge is that we have not been having access to the foreign currency that we require for production. We call upon Government to intervene so that we get the required foreign currency that we meet our production target,” said Mr Nyajeka.

From the required US$15 million, he said the company has only accessed about US$2,5million, which is insufficient to sustain the desired level of production. For that reason, the company has produced only 7 000 tonnes of AN between January and June this year against an annual target of 90 000 tonnes. In July the company did not produce anything. In order to commence production in August he said a forex injection of about $12 million was required.

“Production is expected to start in August if we get the required foreign currency injection. To produce the required 40 000 tonness of AN from August to February 2020, we require at least US$2 million per month,” he said.

Mr Nyajeka said Sable Chemicals has since devised beneficiation methods using local material and services to be able to produces two tons of AN from every ton of ammonia gas. The country requires about 180 000 tonness of AN per year and based on the demand, the company can only be self-sufficient with adequate foreign currency.

Chairperson of the committee, Joshua Sacco, said the purpose of their visit was to familiarise with challenges facing companies across the country.

“I do not see the reason why Government is not prioritising the company in terms of foreign currency.

“We are therefore going to push for Government to give the company first priority as it plays an important role in the development of the nation,” he said.