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South-South partnership between Ethiopia and Morocco to develop a world-class fertilizer plant

Addis Abbaba, November 19th , 2016

Today, OCP and the Ethiopian Ministry of Public Enterprise announce the signing of a $2.4 billion partnership for the development of a world-class fertilizer platform, continuing their commitment to the development of a south - south partnership. This game-changing partnership is based on a common vision between Morocco and Ethiopia for sustainable agricultural development across Africa and reinforces economic ties between the two countries.

The first phase of the $2.4 billion investment will enable the production of 2.5 million tons of fertilizer per year through 2022, rendering Ethiopia self-sufficient in fertilizer and creating opportunities for exports. The plant, named Dire Dawa Fertilizer Complex, will produce fertilizer made from Ethiopian potash and ammonia gas, as well as OCP’s phosphoric acid, taking full advantage of both countries complementary natural resources.

Its fully integrated design will regroup logistics, production, raw materials access, storage and transportation and will satisfy 100 percent of Ethiopia’s fertilizer demand with high-quality, competitively priced and customized fertilizers. Excess capacity at the platform, coupled with its strategic location and a new railway connection granting access to neighboring countries, will enable export to the regional market.

An additional investment of $1.3 billion is expected to increase production to 3.8 tons per year by 2025 in order to meet growing local demand. At the end of this second installation phase, the plant will be made up of 9 units and increase annual fertilizer production by 50%.

This partnership will benefit from:

  • The integration of African natural resources for African farmers though the production of fertilizers from African raw materials
  • The strong agricultural potential of Ethiopia, which requires an increased use of fertilizers adapted to soil and crop needs
  • A world class expertise of more than 50 years in the fertilizer industry

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