Chamwe Kaira
The Malawian government has awarded a Namibian oil company a US$150 million contract to supply fertilizer to that country, the Malawian media reported this week.
The report by malawi24.com said Smallholder Farmers Fertiliser Revolving Fund of Malawi (SFFRFM) signed a contract with Namibian firm Nendongo Commercial Group (NCG) for the supply of the fertiliser.
The contract SFFRFM signed with NGC indicates that government is procuring 200 000 metric tonnes (MT) of fertiliser from the Namibian company at the contract price of US$150 million.
The contract is split into two consignments of 100 000 MT of NPK (worth US$85 million) and another 100 000 MT of urea valued at US$65 million.
Urea has important uses as a fertilizer and feed supplement, as well as a starting material for the manufacture of plastics and drugs. It is a colourless, crystalline.
NPK (nitrogen, phosphorus, and potassium) are the main ingredients in most fertilizers. The letters NPK stand for the three major nutrients that plants need to live and grow nitrogen, phosphorus, and potassium. Plants need other nutrients like iron, calcium, and even chlorine, but N, P, and K are the big three.
The Namibian company offered SFFRFM US$850 per tonne for NPK while the fertiliser company is procuring urea at US$650 per tonne.
SFFRFM chief executive officer Richard Chikunkhuzeni signed on behalf of Malawi Government while NCG managing director Jonas Nendongo signed on behalf of his company.
The company’s online profile shows that it was established in 2018 and operates in oil and fish industry.
NCG’s products include marine oil, outboard oil, motor oil, ATF oil, hydraulic oil, gear oil, diesel engine oil, 4T&2T, brake fluids and grease which are supplied in southern Africa.
According to its profile, Nendongo Commercial Group – Oil and Lubes is an industrial oil & lubricant retailer, established in Windhoek.
“By consistently providing services that meet or exceed customer expectations and international standards, we will develop user loyalty and so achieve strong business performance in the field of “manufacturers of high quality lubricants, industrial oils, hydraulic oils & greases, marketing of lubes additives, base oil, brake fluids and other petroleum products. We are suppliers of high quality lubricants, industrial oils, hydraulic oils & greases, marketing of lubes additives, base oil, brake fluids and other petroleum products in Southern Africa,” the company profile said.
