How U.S.-Iran conflicts are driving up fertiliser costs in Zambia

By Carol Sichone

As an agriculture-driven economy, Zambia relies heavily on affordable fertiliser to sustain production. But despite progress in developing a local fertiliser market particularly in blending the country remains highly exposed to global price shocks.

Escalating tensions between the United States and Iran are now threatening to push fertiliser costs even higher, raising concerns over input affordability and national food security, despite Zambia having no direct trade links with the Middle East.

 Agricultural expert Samson Phiri says the impact is already being felt through global energy markets, where supply disruptions in key oil- and gas-producing regions are driving up fuel prices.

 “The conflict has created uncertainty in global energy markets, disrupting supply chains and shipping routes. This has pushed up crude oil prices, and in turn, the cost of diesel, petrol, and natural gas,” Phiri said in an interview.

Higher energy prices are directly feeding into fertiliser production costs. Nitrogen-based fertilisers such as urea and ammonia are highly energy-intensive, with natural gas accounting for a significant share of production inputs. “When energy prices rise, fertiliser becomes more expensive to produce, and that cost is passed along the entire value chain,” he explained.

The impact is compounded by rising transport and logistics costs an even greater burden for landlocked Zambia.

“Fertiliser is a bulk commodity reliant on international shipping and inland distribution. Higher fuel prices increase costs at every stage, from importation to delivery to rural farmers,” Phiri noted.

Annually, Zambia imports between 800,000 and 1,000,000 metric tonnes of fertiliser, valued at between US$400 million and US$700 million, depending on global prices. Local production stands at an estimated 250,000 to 350,000 metric tonnes per year, largely made up of blended fertilisers.

However, key inputs such as urea remain predominantly imported, reinforcing the country’s exposure to international market fluctuations. Although Zambia sources much of its fertiliser from countries like Russia, China, Morocco, and South Africa, it remains fully exposed to global market dynamics. “Fertiliser markets are interconnected. Zambia doesn’t just import fertilizer it imports global price volatility,” Phiri said.

 Global supply pressures are also intensifying. As of March 2026, China has restricted fertiliser exports, particularly nitrogen-potassium blends and certain phosphates, to protect domestic supply. At the same time, disruptions linked to U.S.-Iran tensions especially around the Strait of Hormuz are constraining global supply chains.

 The Middle East remains a key supplier of ammonia and urea, meaning any conflict, sanctions, or logistical bottlenecks in the region quickly ripple across global markets.

“When supply tightens, buyers compete for alternative sources. That drives demand pressure and pushes prices higher worldwide,” Phiri explained.

 Shipping disruptions, including along Red Sea routes, have further increased freight costs and insurance premiums, inflating the final landed price of fertiliser in Zambia. “For a landlocked country, these shocks are amplified. Goods travel longer distances through regional corridors, adding multiple layers of cost,” he added.

The implications for agriculture are significant. Rising fertiliser prices could force farmers to cut back on usage, reducing yields, increasing production costs, and limiting expansion.

 “This goes beyond input costs it affects productivity, profitability, and ultimately food security,” Phiri warned.

Despite progress in local blending, Zambia still imports about 75% of its fertiliser, limiting its ability to cushion against global shocks especially for critical inputs like nitrogen.

Phiri who is also a 2025 Harvard APL fellow, called for strategic interventions, including increased investment in local manufacturing and the adoption of efficiency-enhancing solutions such as mono-fertilisers. “Zambia’s vulnerability is not about direct trade links it’s about being part of a global, price-sensitive system where shocks spread quickly,” he said.

As geopolitical tensions persist, fertiliser costs are emerging as a key pressure point for Zambia’s agricultural sector and a growing risk to the country’s food security outlook.

By Carol Sichone As an agriculture-driven economy, Zambia

Izwe loans post over K195 million in profits

 ‎By Carol Sichone

Izwe Loans Zambia Plc recorded a profit after tax of K195.4 million for the year ended December 31, 2025, reflecting a 12 percent increase from the previous year. The lender’s performance was largely supported by growth in its core lending business, with net interest income rising by 20 percent to K636.4 million.

The increase was driven by sustained lending activity and an expansion in the company’s loan book during the period. Non-interest income also recorded modest growth, with net fee and commission income increasing to K21.7 million, as the company continued to broaden its product offering beyond traditional lending.

Profit before tax rose by 16.2 percent to K289.7 million, pointing to improved operational efficiency and revenue growth. Earnings per share also strengthened, with basic and diluted earnings per share increasing to K1.99 from K1.78 in the prior year, indicating improved returns to shareholders.

Meanwhile, a Lusaka-based consumer, Mercy Phiri, said the increase in borrowing reflects growing financial pressure on households as the cost of living continues to rise.

 “Most people are turning to loans to cover basic needs like food, school fees and rentals. Salaries are not increasing at the same pace as prices, so borrowing has become a way to bridge that gap,” She said.

Phiri added that access to quick and convenient loan products has also contributed to the trend, particularly among formally employed individuals.

 “Many lending institutions have made it easier to access credit, especially for those in formal employment. While this helps in the short term, it also means more people are relying on debt to sustain their lifestyles,” he said.

 ‎By Carol Sichone Izwe Loans Zambia Plc recorded

Photo focus – ZBT MD speaking at a panel discussion on media entrepreneurship in Africa at Cape Town

Zambian Business Times – ZBT Founder and Managing Director Donald Mumba today spoke at the Africa Media Perspectives – AMP forum at Paarl, Cape Town South Africa. The discussion focussed on “Lessons from Africa’s rising media entrepreneurs”

The panel was composed of some the continent’s most inspiring media entrepreneurs coming together to share their stories. What has worked, what didn’t, and the ideas that are shaping the future of journalism in Africa. The discussion provided practical insights and lessons that newsrooms can apply to grow, engage audiences, and explore new revenue opportunities.

The panel was moderated by USA-Texas based Kobas Louwrens, the Co-Founder of Food for Mzanzi, alongside a distinguished panel of media entrepreneurs from across Africa.

Mumba was among distinguished speakers that included John Bailey – Owner of Sunday World and Sunday Sun of South Africa, Caleb Maru – Founder and CEO, TechSafari, Kenya and Lerato Matheka – Co-owner and Managing Editor, Newsday Media, Lesotho.

Zambian Business Times - ZBT Founder and

EIZ inspection confirms shoddy work done on the Ndola-Sakanya Road

By Karen Ngulube

The Engineering Institute of Zambia has raised concerns over premature failures observed on sections of the recently upgraded Ndola – Sakanya Road, barely a year after the road was commissioned.

This comes nearly 2 years after, the Zambian Business Times – ZBT, had reported significant concerns regarding poor workmanship and planning on some of the PPP Roads that were being implemented without an independent engineering consultant.

Speaking in a statement made available to the Zambian Business Times- ZBT, the President of the Engineering Institute of Zambia, Eng. Wesley Kaluba, confirmed that a delegation of engineers inspected the road following concerns raised about its condition.

Eng. Kaluba said the delegation included representatives from the Engineering Council of Zambia and members of the engineering technical committee.

He explained that the road project was implemented through a Public-Private Partnership (PPP) financing model with the Road Development Agency acting as the contracting authority.

However, the inspection revealed that several sections of the road have already begun to deteriorate.

“We found that the road has prematurely failed in several sections, and this is just about 12 months after commissioning the project,” Eng. Kaluba said.

He noted that the affected sections start from approximately four kilometers from the roundabout near Levy Mwanawasa Stadium and extend beyond the ZAFFICO checkpoint.

According to Eng. Kaluba, the concessionaire, has been patching the damaged sections, but engineers believe this is not an adequate engineering solution where structural pavement failure has occurred.

“These pavements have prematurely failed, and the concessionaire has been patching most of them. From an engineering standpoint, patching is not the appropriate solution where there is structural failure,” he said.

Eng. Kaluba further revealed that the engineers discovered that the project was implemented without the supervision of an independent consulting engineer, a key requirement in infrastructure development to ensure proper quality control and professional oversight.

He explained that in standard engineering practice, an independent consulting engineer is responsible for supervising design approvals and construction works to ensure projects meet the required standards.

Eng. Kaluba also noted that Copperbelt Province Minister Elisha Matambo had earlier observed similar failures during his inspection of the road and recommended that the contractor reconstruct the affected sections rather than rely on patchwork repairs.

However, he said the concessionaire reportedly maintained that the patches were equivalent to reconstruction, a position he described as unacceptable from a professional engineering perspective.

“If there was a qualified independent consulting engineer on the project, he or she would have recommended that the affected sections be ripped off and reconstructed,” he said.

Eng. Kaluba stressed that the Engineering Institute of Zambia does not directly supervise infrastructure projects but provides regulatory oversight over engineering practice in the country.

He cited the Public Roads Act No. 12 of 2002, noting that the contracting authority should not assume the role of project consultant and that independent supervision is essential to ensuring transparency and quality in public infrastructure development.

EIZ has since called for reforms in the implementation of PPP infrastructure projects to ensure independent consulting engineers are engaged to supervise works and prevent premature failures in public infrastructure projects.

By Karen Ngulube The Engineering Institute of Zambia