By Alfred Zacharia
In a bold step to strengthen domestic fertilizer production and reduce reliance on imports, the Tanzania Petroleum Development Corporation (TPDC) has signed a Memorandum of Understanding (MoU) with Indonesia’s ESSA Company to build a large-scale urea fertilizer plant in Mtwara Region.
The strategic partnership will not only ensure a reliable supply of natural gas—an essential raw material for fertilizer production—but will also mark TPDC’s transition from a mere gas supplier to a direct investor in agro-industrial projects.
“This marks the beginning of a significant journey to promote local fertilizer production,” said Derrick Moshi, TPDC’s Director of Planning and Investment, shortly after the signing ceremony on May 19.
“We are not just providing gas. TPDC is stepping in as a co-investor,” he added.
According to Moshi, ESSA has already been granted approval to conduct in-depth feasibility studies covering gas demand, infrastructure, and transportation costs.
“With the wells we have now, meeting gas needs for fertilizer production is feasible. We have short- and long-term strategies to reserve gas for fertilizer plants, proving our serious commitment to supporting the agricultural value chain,” Moshi added.
ESSA Board Member and Commissioner Rahul Puri revealed that the five-year project is valued at $1.4 billion (TZS 3.5 trillion) and will be implemented in three phases.
Once complete, the plant is expected to produce one million tonnes of urea fertilizer annually.
“The plant will require about 70 million cubic feet of gas per day,” said Puri.
Sixty percent of the fertilizer, according to him, will serve the local market, while the remaining forty percent will be exported.
Puri also highlighted the project’s economic potential, noting that it will create over 4,000 direct jobs and more than 300,000 indirect jobs, significantly boosting Tanzania’s economy.
Fertilizer Regulation Authority (TFRA) Board Chair Dr. Anthony Diallo welcomed the project as a game-changer for national agricultural input security.
“Most of our urea is imported. Producing it locally gives us greater control and reduces external dependency,” said Dr. Diallo.
He noted that last year Tanzania imported around 800,000 tonnes of fertilizer, yet national demand has grown to over one million tonnes, leaving many farmers underserved.
Lameck Borega, Director of Business at the Tanzania Fertilizer Company (TFC), echoed the significance of the agreement, pointing out the financial strain of imports.
“Last year, we spent over $50 million (TZS 120 billion) importing fertilizer. That money could have funded critical development projects here at home,” Borega said.
He emphasized that local production will not only lower transportation costs but also help eliminate the need for government subsidies.
“With our own plant, prices will drop, and farmers will access fertilizer affordably and on time,” he said.
The TPDC–ESSA fertilizer plant is part of Tanzania’s broader economic vision to industrialize agriculture, enhance food security, and drive inclusive growth.
Beyond job creation and reduced import costs, the plant is expected to increase productivity in farming and strengthen Tanzania’s position in the regional fertilizer market.
This move signals Tanzania’s growing confidence in using its natural resources to spur industrial development and self-reliance in critical sectors such as agriculture.
“This project isn’t just about fertilizer. It’s about unlocking Tanzania’s potential through strategic investment in our land, our people, and our future,” said Moshi.