Omnia Fertilizer Zimbabwe (Omnia Zim)’s South Africa-headquartered parent, Omnia Holdings Limited (Omnia), says it can absorb the raw materials supply shocks caused by the on-going disruptions of the Strait of Hormuz.
Omnia manufactures and supplies fertilisers, explosives and specialized chemical products using substances such as ammonia and urea in the manufacture of nitrates.
About 30 percent of all ammonia is shipped through the contested Strait of Hormuz.
While Sasol makes about 400,000 tons of ammonia annually, the majority of chemicals are imported.
“We haven’t run short of any fertiliser or explosives, and we’ve been able to shore up supply for the coming few months. So, even though we do have product stuck in the Middle East, we’ve been able to source alternative product,” Omnia chief executive Seelan Gobalsamy said.
“That speaks to our storage and the redundancy of our supply chain, and all of that has worked very well for us,” he said.
Inevitably, however, costs will be passed on to customers. “I think there will be costs that we are forced to pass on; we can’t absorb them,” he said.
“Ammonia is more than double what it was a few months ago, so we have to pass on that ammonia cost, and similarly urea, which is another form of nitrogen, has gone up by even more than that,” Gobalsamy said.
Omnia’s guarantee of stable supplies, despite the Hormuz crisis, is crucial for Omnia Zim, which is recognized as a key player in the Zimbabwean fertilizer market and a major importer.
Omnia Zim has been associated with roughly 241 import shipments in the 2025 trading year.
The company recorded an import turnover of approximately USD40.26 million during the period.