Russian Billionaire in Zimbabwe for fertiliser deals

Russian Billionaire in Zimbabwe for fertiliser deals
Russian fertiliser billionaire Dmitry Mazepin

Russian fertiliser billionaire Dmitry Mazepin

RUSSIAN fertiliser billionaire Dmitry Mazepin arrived in Harare on Tuesday afternoon to explore opportunities in Zimbabwe’s agro-chemical sector, the latest mogul to peek into the country as President Emmerson Mnangagwa actively courts foreign capital.

Mazepin is one of Russia’s richest businessmen, Forbes puts his worth at $3,2 billion, but various Russian newspapers value his wealth at up to $7,7 billion. Forbes places him in the top 100 of richest Russians. Mazepin has made his fortune in the fertiliser business, through his company Uralchem, which is the world’s second-largest manufacturer of ammonium nitrate.
In 2013, he bought into Uralkali, the world’s largest miner of potash, used in the manufacture of fertiliser. Uralkali is worth $15 billion, by some accounts.
This week, Mazepin arrived in Zimbabwe and plans to invest in the country’s 500 000 tonne per year fertiliser business, according to officials.
Mazepin was among those that attended the World Economic Forum in Davos, where Mnangagwa made a pitch for international investment in Zimbabwe. It is unclear if the two met.
Mazepin is a graduate of the Minsk Suvorov Military School and has served as an MP in President Vladmir Putin’s United Russia party. He started building his fortune in 2004, when he forged Uralchem from a string of companies that he had taken over in a series of often controversial takeovers. He is well connected in the financial world. He has had the support of Russia’s top lenders, such as Sberbank, VTB and Renaisance Capital, the last two of which have done business in Zimbabwe.
Uralchem seems a godsend for Zimbabwe, which is desperate to solve perennial fertiliser shortages. The country has had to rely on imports, the last of which were funded through a facility from Afreximbank, to meet fertiliser demand.
The country has just one ammonium nitrate producer, Sable Chemicals, which can only supply a quarter of demand, according to its chief executive officer, Bothwell Nyajeka.
That a company the size of Uralchem is looking at Zimbabwe for investment is, therefore, reason for hope that Mnangagwa’s pro-business drive is working. However, the scary part is that Mazepin has been accused of ruthless business practices and cutting corners in other markets. In the rush to welcome foreign money, how much should that be a concern to Zimbabwe?
In 2016, Mazepin was accused of “a raider attack”, a business move in which a minority shareholder works from the inside to devalue a company and buy it on the cheap. Mazepin was accused of trying to bring down a fertiliser firm, TOAZ, which holds 20 percent of the global ammonia market. Past press articles also point to Mazepin’s conflicts at Russian gas firm Gazprom and other brutal takeovers.
It is not a coincidence that a Russian fertiliser billionaire is arriving in the country just as Zimbabwe has put its key fertiliser operation, Chemplex, up for sale.
Chemplex, a unit of the Industrial Development Corporation, owns the companies that are at the centre of the fertiliser business; Chemplex owns half of the Zimbabwe Fertiliser Company, 36 percent of Sable Chemicals and wholly owns ZimPhos and Dorowa Minerals. Dorowa Minerals is the country’s only phosphate mine.
In a notice last week, the IDC said it was looking for a new investor for Chemplex.“The investor is expected to inject additional capital into the business, bring in new technology and access to wider markets for the business,” said IDCZ.
An offer to Mazepin to take over Chemplex is on the cards. Chemplex is already also in the sights of Robert Gumede, a South African businessman, and also those of South Africa’s IDC.
Amid all the hopes brought by Mnangagwa’s open-door policy for investors, there will be many questions over the types of investors Zimbabwe is attracting.
There will be fears that an over eager Zimbabwe might end up with investing partners that it may find hard to deal with eventually.
However, in this rare window of international goodwill that the country is enjoying, Zimbabwe barely has the luxury to wait and pick and choose.
“The country will go with those brave enough to step up now. But we will obviously do our homework and due diligence, to make sure we get the best deals out of those making themselves available,” a senior government official involved in the Mazepin visit said on Wednesday.

  • Mhofu David

    This week, Mazepin arrived in Zimbabwe and plans to invest in the country’s 500 000 tonne per year fertiliser business, according to officials. Taneta ne ma plans plans and plans. We want action ACTION. All the money ED’s government is talking about r just intentions plans on paper. No money yet

  • Gladmore Jani

    “Mazepin was among those that attended the World Economic Forum in Davos, where Mnangagwa made a pitch for international investment in Zimbabwe. It is unclear if the two met.” They did

  • Never Muyambo

    Be careful of these Russians. Ask me later

  • Market Watcher

    In 2016 a delegation of Russian companies led by Deputy Head of Africa Division of the Ministry of Industry and Trade of the Russian Federation Pavel Volosov was in the country and had a meetings with government and some local companies. It was hosted by the Permanent Secretary of the Ministry of Macro-economic Planning Dr Desire Sibanda and Ambassador of Zimbabwe to Russia Brigadier General Mike Sango. Russian companies, which were represented include Great Dyke Investments Private Ltd, DTZ-OZGEO Private Ltd, GTL and Alumet. During the discussion, the Russian delegation provided an update on the progress on the Darwendale platinum project. Great Dyke general manager Igor Higer said the company had already spent $58 million, saying the $3 billion project “remains key” in Zimbabwe-Russia bilateral relations. What became of this project

  • Marshal Deve

    In May 2017 Disgraced former president Robert Mugabe made a visit to the Kremlin where he had a closed door meeting with Russian President Vladimir Putin on, among other issues, investment, will no doubt strengthen the “relationship of convenience” between Zimbabwe and Russia, but the two countries have a long way to go in building solid cordial relations and meaningful levels of bilateral trade and investment. Maybe under ED this complexion can change

  • Ralph

    Pane achachema avharwa pama deals aya.

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