• Broxmen Investments plans a US$500 million coal-to-chemicals complex in Chegutu, targeting large-scale urea and ammonium nitrate production by 2028, supported by a dedicated 60MW power plant
• The project directly addresses Zimbabwe’s fertiliser deficit, which has forced heavy imports despite existing but underutilised local capacity
• If backed by stable policy and infrastructure support, the investment could drive import substitution, strengthen food security, and catalyse broader industrial growth

Harare - Chinese investor Broxmen Industrial Park, also known as Broxmen Investments and operator of the Sunny Yifeng tile manufacturing plant in Norton, is set to invest US$500 million in the development of a Coal-to-Chemicals Complex in Chegutu. According to Zimbabwe Economic Review, this investment forms part of Zimbabwe’s broader push toward industrialisation and economic self-reliance.

The facility is expected to commence production in 2028 and will have the capacity to produce 350,000 tonnes of urea and 200,000 tonnes of ammonium nitrate annually. Complementing this development is a US$40 million, 60MW power plant, also funded by Broxmen, which is scheduled for commissioning in September 2026. The inclusion of a dedicated power plant is particularly significant given Zimbabwe’s persistent electricity challenges, which have historically constrained industrial output.

This investment comes at a time when Zimbabwe continues to grapple with heavy reliance on fertiliser imports despite ongoing efforts to rebuild domestic production capacity. National fertiliser demand is estimated at between 600,000 and 780,000 tonnes per year, depending on seasonal requirements and the scale of government-supported agricultural programmes.

However, local production has consistently fallen short of this demand, resulting in significant import requirements that place pressure on foreign currency reserves while exposing farmers to global price volatility. For example, the country is still expected to import approximately 230,000 tonnes of fertiliser for the 2025/26 agricultural season. At the same time, government interventions, including capital injections through the Mutapa Investment Fund, are aimed at revitalising existing producers and boosting output.

Zimbabwe’s fertiliser industry is anchored by a small group of established players, each operating under varying constraints. Sable Chemical Industries in Kwekwe remains the country’s primary producer of ammonium nitrate, with a historical nameplate capacity of around 240,000 tonnes per year. Despite its strategic importance, the company has faced prolonged operational challenges, including a multi-year shutdown, although it is now undergoing restructuring and recapitalisation, with production expected to resume and scale up in 2026.

Zimbabwe Phosphate Industries, commonly known as ZimPhos, focuses on phosphate-based fertilisers and has benefited from investments in the Dorowa phosphate rock mine, although issues related to raw material supply and output consistency persist. Windmill (Pvt) Ltd has emerged as one of the more active blending companies, increasing production to support both government input schemes and commercial agriculture, including winter wheat programmes.

Other participants in the sector include the Zimbabwe Fertiliser Company, Fertiliser Seed Grain, Omnia, and several smaller blending firms. While total installed capacity across the industry appears adequate on paper, actual utilisation has historically ranged between 38% and 52%, reflecting deep-rooted inefficiencies and operational constraints.

These constraints are largely structural in nature and have continued to limit the sector’s performance despite periodic interventions. A major challenge is the heavy reliance on imported raw materials such as ammonia and various acids, which exposes producers to foreign currency shortages and international supply disruptions. At the same time, unreliable and expensive electricity remains a critical bottleneck for what is inherently an energy-intensive industry.

Logistics challenges further compound these issues, particularly in relation to the transportation of bulk inputs such as phosphate rock from Dorowa. In addition, high borrowing costs, delayed payments under government-supported agricultural programmes, ageing infrastructure, policy inconsistencies, and environmental compliance requirements have all contributed to underinvestment and slow modernisation across the sector.

Within this context, the Broxmen project introduces a potentially transformative model by leveraging Zimbabwe’s abundant coal resources through coal-to-chemicals technology, an approach that has been successfully implemented in countries such as China and South Africa. This model offers a viable pathway toward import substitution, particularly for nitrogen-based fertilisers. The integration of a dedicated power plant further strengthens the project’s viability by directly addressing energy supply constraints. More broadly, the investment aligns with Zimbabwe’s National Development Strategy, its import substitution agenda, and Vision 2030 goals centred on food security and industrialisation.

The decision to locate the plant in Chegutu rather than Hwange, however, raises important strategic considerations. Hwange, situated in Matabeleland North, is in close proximity to the country’s largest coal reserves and already hosts significant coal mining and power generation infrastructure. From a purely feedstock perspective, locating a coal-to-chemicals plant in Hwange could reduce transportation costs and improve integration with upstream mining activities.

However, Chegutu presents a different set of advantages that appear to have influenced the final decision. Located along the Harare–Bulawayo corridor, Chegutu sits within one of Zimbabwe’s most productive agricultural zones, allowing for more efficient distribution of fertiliser to key farming areas. This proximity to end markets reduces logistics costs associated with product delivery, which can be a significant component of overall fertiliser pricing.

In addition, Chegutu is increasingly emerging as an industrial hub, supported by other large-scale investments, including the nearby Shuntai cement plant, another Chinese-backed project that is nearing completion and is expected to produce around 800,000 tonnes annually. These developments create opportunities for shared infrastructure, a growing skilled labour base, and integrated supply chains.

The town also benefits from relatively better road and rail connectivity to Harare and key trade corridors, as well as access to water resources necessary for industrial processes. Although coal will need to be transported from Hwange to Chegutu, the overall economic calculus, which includes market proximity, existing investments by the same investor, and distribution efficiencies, likely favoured this central location.

For the Broxmen project to achieve its full potential and contribute meaningfully to the broader fertiliser industry, a number of enabling conditions will be essential. Policy consistency will be critical, particularly in ensuring long-term investment security, alongside the provision of incentives and guaranteed offtake arrangements under programmes such as Command Agriculture.

Infrastructure development, especially in power, rail, and water systems, will need to be accelerated to support both new and existing operations. There is also a need to expand access to affordable financing for established players such as Sable and ZimPhos to enable modernisation and improved efficiency.

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