Tanzania plans this year to begin work on the construction of the largest in Africa production fertilizer companies worth $3 billion within the framework of measures to increase agricultural production of the country.

Production company that Tanzania is building together with a consortium from Germany, Denmark and Pakistan, will use natural gas to produce fertilizer.

The company, which will become the largest producer of fertilizer in Africa, will have a production capacity of 3800 tons per day.

The production company is expected to create more than 5,000 jobs, and his investment will be worth $3 billion.

Tanzania currently imports most of the fertilizers for crops, including coffee, sugar and corn.

According to the official, state-controlled Tanzania Petroleum Development Corporation (TPDC) signed a joint venture agreement with the German company Ferrostaal Industrial Projects, the Danish manufacturer of industrial catalysts by Haldor Topsoe and Pakistani fertilizer company Fauji Fertilizer Company Pakistan to develop a manufacturing facility.

The management of the project by Ferrostaal confirmed that the company will implement the project and that the production company will work in 2021.

The plant will be built in the South of Tanzania near the large deposits of offshore gas and construction is expected to be completed in 2020. Natural gas can be used for the industrial production of ammonia, a key component of fertilizer.

The East African country announced in February that it had discovered additional of 2.17 trillion cubic feet of deposits of natural gas in the onshore, which increased the total estimated recoverable natural gas reserves to 57 trillion.

The fertilizer produced by the company, will be used to improve agricultural production in Tanzania, while the surplus power will be exported to foreign markets.

Agriculture brings more than a quarter of the gross domestic product of Tanzania and is approximately 75% of the workforce, but limits the growth of low productivity.

Source: Thomson Reuters