In a positive development for Malawi’s agricultural sector, President Lazarus Chakwera has hinted that his negotiated an investment agreement with the Moroccan state-owned company, OCP Group, to establish a fertilizer manufacturing company in the country.
President disclosed the development today in Lilongwe during a Parliament session where he appeared to answer questions from Members of Parliament. According to the President, this initiative aims to alleviate the soaring prices of fertilizer, which have become a significant burden for farmers across the nation.
During a parliamentary session, the President faced concerns from legislators over the current market prices for fertilizer, which have reached at least K105,000 per bag. Member of Parliament for Nkhata-Bay North West, Julius Chione Mwase, made the supplementary question on the issue of fertilizer:
“Your Excellency Mr. President, are you aware that a bag of fertilizer is currently selling at K105,000 which is far higher than the K4,495 you promised Malawians during campaign? What actions have you taken to ensure that Malawians can purchase a bag of fertilizer at a promised price of K4,495? Given this situation, can you confidently say that your Government is delivering on each commitment?” he querried.
In his response, President Chakwera highlighted a multifaceted approach that his Government has adopted in addressing the issue which include innovations like nano-fertilizer and organo-mineral fertilizers among others. He asserted that these alternatives are not only more cost-effective but also environmentally friendly, helping to reduce dependency on traditional chemical fertilizers. However, he emphasized that his Government is also intending to facilitate local production of fertilizer, stating that a Moroccan state-owned company is ready to set fertilizer production factory in the country.
“But let me also mention that we are intending to have fertilizer companies, in addition to what we have now, from OCP in Morocco. They have already done soil testing with Chitedze Research Station. That will also help us make the necessary adjustments in fertilizer prices”, the President answered.
The president acknowledged the stark contrast between current fertilizer prices and the government’s previous commitments, noting the struggles farmers face. However, he highlighted a shift in the agricultural economy: “Farmers used to sell 5 to 6 bags of maize to afford one bag of fertilizer. Now, they only need to sell 2 to two and a half bags to buy the same bag of fertilizer”, said the President adding that “Soya that was selling K100 per kg but is now selling at K1,500. Tobacco bales and sales have been improving year after year. So the equation should not be seen at one end, we need to see both. We realize that worldwide, prices have not stayed stagnant, but we have, even for the AIP, for a number of years maintained the K15,000 price despite that the price of fertilizer has hiked many times. But when we look at a farmer who uses to sell 5, 6 or sometimes 8 bags of maize just to afford one bag of fertilizer, now affording that bag of fertilizer after selling just 2 or 2 and a half bags of maize, we know that something is working despite the propaganda.,” he explained, suggesting that increased crop prices, such as the soya beans and tobacco have improved farmers’ purchasing power, reflecting the price dynamics in the agricultural sector.
The OCP Group, previously known as Office Chérifien des Phosphates, is Morocco’s largest state-owned phosphate miner and one of the leading producers of fertilizers globally. Founded in 1920, OCP’s substantial resources and expertise position it well to contribute to Malawi’s agricultural infrastructure, which has historically been strained by fluctuating fertilizer prices and inconsistent supply.
As President Chakwera noted, the establishment of this new partnership with OCP could serve as a vital turning point for Malawi’s agriculture, providing farmers with greater access to affordable fertilizers, improving crop yields, and consequently boosting the agricultural economy.
Chakwera concluded, “We must continue to ensure that our farmers receive good prices for their products, empowering them to purchase the inputs they need at affordable rates” noting that this is essential for a thriving agricultural sector that can respond to both local and global market demands.
