According to Jorg Herera, deputy head of Mission for the Federal Republic of Germany in Tanzania the negotiations are in its final stages.
The plant is a joint venture between the government of Tanzania, Ferrestal industrial project of Germany, Danish Industrial Catalyst Producer Haldor Topsoe and Pakistan's Fauji Fertilizer.
The envoy was speaking during a press briefing at the ongoing 43rd Dar es Salaam International Trade Fair (DITF).
He said the government has shown a new path to implement changes in investment and that this will go a long way to attract more investors hence benefit it's people.
"Germany see Tanzania as a get way to the East African market and by this we want to make use of the opportunity to bring more Germany companies to Tanzania," he said.
According to him trade volume between Tanzania and Germany stands at $ 300 million saying there big room for improvement.
He added that the coming of the blue print will help to facilitate ease of doing business in the country hence encourage investment.
"The blue print set the stage for raft of changes to the way business is conducted in Tanzania," he said.
It is expected that the project which is expected to employ 3,500 workers. The factory will have a capacity to produce 3.8 million tonnes of fertilizer per year.
Annual consumption of fertilizer in Tanzania is 400,000 tonnes, mostly used in agriculture. High transport costs from bulky importers have led to retail sellers increasing the prices of food.
The Germany envoy said his country has been participating in the DITF for a long time and has been named the best foreign pavilion for four times in row.