Foskor, a key player in South Africa’s chemical and fertiliser sector, hosted its inaugural Supplier Day at ZCBF in Richards Bay on 11 June 2025. Over 500 prospective suppliers gathered to learn how to tap into procurement opportunities with the newly structured, state-owned company.
Established in 1971, Foskor plays a vital role in ensuring food security for South Africa and beyond. At the core of its operation is phosphate, an essential mineral for both agriculture and human health. “Every human being needs at least 11kg of phosphate a year,” one of the technical experts explained. “Without it, the human system cannot function properly.”
Foskor mines some of the world’s purest phosphate in Phalaborwa, Limpopo, and transports it by rail to Richards Bay, where it is beneficiated into products such as phosphoric acid, used in everything from fertilisers and animal feed to soft drinks, toothpaste, and beauty products. A large portion of the output is exported to Japan and Europe.
As explained by Lungile Mngomezulu from Foskor’s Procurement Division, the company is now a Schedule 2 public entity under the Public Finance Management Act (PFMA), following the Industrial Development Corporation (IDC) becoming the majority shareholder.
This shift brings stricter governance and transparency requirements. “What applied before, no longer applies now,” said Mngomezulu. “We are governed by Section 217 of the Constitution, which demands procurement that is fair, equitable, transparent, competitive, and cost-effective.”
Procurement reforms were implemented in March 2024, following a qualified audit report from the Auditor-General that flagged non-compliance issues. Since then, Foskor has taken concrete steps to align with National Treasury frameworks, revising internal governance and committing to more open and inclusive processes.
Suppliers were urged to ensure full compliance to be considered. Foskor will only do business with vendors who are:
CIDB-registered (for construction and infrastructure-related services), CSD-registered with the National Treasury, Fully tax-compliant, and Able to submit a complete compliance pack.
While it is not currently a Treasury requirement to advertise Requests for Quotations (RFQs), Foskor has committed to publishing them to promote transparency and widen access.
“Without Foskor, there is no farming,” said Mr. Mbuyazi, highlighting the company’s crucial role in the agricultural value chain. Beyond mining and manufacturing, Foskor is also actively involved in Corporate Social Investment (CSI) initiatives, including support for emerging farmers.
Speaking on behalf of the Zululand Chamber of Commerce and Industry (ZCCI), Vanessa commended Foskor’s transformation journey:
“There was a time when Foskor was not inclusive. But individuals within the company took it upon themselves to transform it and bring in SMMEs.”
She encouraged small businesses to research their industries, understand market trends, and position themselves strategically:
“If you’re based in Richards Bay right now, consider yourself lucky. The economic growth here is massive. You are in the right place.”
Foskor’s Supplier Day is more than a compliance session, it’s a turning point for inclusive economic participation. By opening its procurement doors to a broader and more diverse supplier base, Foskor is setting a new standard for how public entities can support local businesses, job creation, and broad-based empowerment.
As the dust settles from this historic day, one thing is clear: the future of doing business with Foskor is more transparent, inclusive, and full of opportunity.
