Mbilizi under spotlight over single‑source bid in UCF Fertiliser talks

Senior representatives of United Capital Fertilizer Zambia (UCF) have travelled to Malawi for meetings with Agriculture Minister Roza Mbilizi regarding a proposed fertiliser supply arrangement for the 2026/27 Farm Input Subsidy Programme (FISP), in a development that has raised concerns over procurement processes and political oversight. UCF’s chief executive, Huang Yaochi, and the company’s commercial manager are understood to be in Lilongwe to advance negotiations on the commercial structure of the deal, including pricing options and the distribution of benefits expected from the contract. UCF, headquartered in Chilanga, Zambia, is a vertically integrated fertiliser producer with an annual output capacity of 800,000 tonnes, supplying urea, DAP, NPK and customised blends across the region.

The discussions appear to have begun in June 2026, when the Minister’s cousin, Hyde Khembo — a board member of SFFRFM and chair of its Operations Committee — visited Zambia in connection with the proposed arrangement. His involvement has prompted scrutiny over potential conflicts of interest within the procurement chain. According to officials familiar with the matter, an informal meeting between the Minister and UCF executives took place over the weekend, followed by an official engagement on Monday.

It has emerged that Minister Mbilizi requested approval from the Public Procurement and Disposal of Assets Authority (PPDA) for a single‑source procurement arrangement. The request was declined, reflecting the authority’s preference for competitive tendering in high‑value public contracts. However, sources say the Minister subsequently directed SFFRFM not to issue fertiliser tenders, effectively pausing the procurement process.

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The delay risks pushing the timeline close to the onset of the rainy season, when supply pressures typically intensify. Analysts warn that such timing could create conditions in which government faces heightened pressure to secure fertiliser urgently, potentially reviving the case for single‑sourcing — a mechanism PPDA has already rejected. If this scenario materialises, UCF would be positioned as the sole supplier.

The matter raises broader questions about procurement governance, institutional checks and balances, and the management of strategic agricultural inputs. Further developments are expected as discussions continue.

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