Kenya partners with Australian firm to manufacture affordable fertilizer
By evans.maritim, November 7, 2022Kenya has entered into an agreement with an Australian firm to develop affordable green fertiliser facility.
In the agreement signed in Egypt on Monday, November 7, Fortescue Future Industries and the Government of Kenya will work together to build a 300MW capacity green ammonia and green fertiliser facility by 2025.
President William Ruto, who witnessed the signing of the agreement, said the move furthers Kenya’s green energy transition.
“The shift will help reduce our reliance on imports, check the high cost of fertiliser and boost food production,” he said.
Fortescue Executive Chairman and Founder Dr Andrew Forrest said the partnership will create thousands of new jobs in Kenya.
Ruto had picked manufacturing of fertiliser in Kenya as one of his campaign promises ahead of the August 9 presidential election.
The Head of State further stressed the same during his visit to Uganda last month where he attended the country’s independence day celebrations.
He gave the example of clinker which is used in the manufacture of cement, fertiliser, and steel as some of the goods that are imported but whose raw materials are readily available in the region but are not properly utilised.
“We spend $500 million every year to import clinker for our cement manufacturers, for our construction, but we have the raw material in Kenya, Tanzania and Uganda to produce clinker,” he said.
According to him, harnessing this advantage can save the three countries the $500 million they export from the region.
To push the agenda, Ruto asked Museveni to take charge and lead the region in ensuring EAC becomes a borderless community.
“You have the age and you have the experience, take the responsibility and lead the charge,” he said.
Kenya’s plan on trade
To make the dream of regional prosperity possible, President Ruto also proposed to his counterparts from Ethiopia, Uganda, and Tanzania to open up their borders for free movement of goods and eliminate restrictions that inhibit free trade and the movement of citizens.
During a meeting with Tanzania’s President, Samia Suluhu, they agreed to work on ways to eradicate trade barriers between the two countries, which have recorded increased cross-border trade in the last two years.
Ruto said a borderless East Africa Community (EAC) will not only spur free movement of goods but also unlock numerous business opportunities, wealth and prosperity for the citizens of the region by making it possible for them to trade with each other by leveraging on their countries’ respective strengths in such areas as mining, agriculture, and manufacturing.
“In the years 2020 and 2021, Kenya’s exports to Tanzania increased to Sh45.6 billion while imports from Tanzania nearly doubled to Sh50.1 billion in 2021 from Sh27.2 billion. This is a clear indication that trade is in favour of Tanzania,” Ruto said in a joint communiqué with his host, President Samia Suluhu.
Ruto also used the opportunity to press for a natural gas pipeline from Tanzania through Mombasa and later Nairobi.
“The project, upon completion, would make our countries compete for investment as there will be sufficient energy for development,” he said.
The two countries agreed on the need to ease the transportation of key energy resources, noting that measures have been put in place on the implementation of the project.
Backing the proposals, President Suluhu said: “Our countries are only separated by boundaries but we must build on our close cultural and historic ties to ensure our citizens benefit from interactions”.