Morocco: Office Chérifien des Phosphates (OCP Group)
The project relates to the expansion of OCP Group’s industrial facilities at Jorf Lasfar, a deep-water commercial port on Morocco’s Atlantic coast. In 2014, an industrial unit was launched with an annual capacity of one million tons of fertilizer dedicated to the African market. OCP Group is a leading global fertilizer and the largest global producer of phosphate rock and phosphoric acid that has been in operation for a century.
The Bank’s Investment
In 2011, the Bank approved a corporate loan of US $250 million to OCP of a total estimated cost of MAD 41 billion, or UA 3.2 billion. The program was financed through the company’s operating cash flows and loans from development banks (Agence Française de Développement, European Investment Bank, Islamic Development Bank , KfW Bankengruppe (German Development Bank) the Bank) and local and international commercial banks.
Following the Bank’s initial support to Morocco’s phosphate and fertilizer production in 2011, AfDB approved a second loan of USD 200mi in 2018 to support the expansion of the production and storage facilities. The impact of these operations is to improve better access to more fordable fertilizers for farmers across the continent, creating thousands of jobs and increasing government revenues. With plans to expand developments across Africa, the AfDB is positioned to support the OCP Group in championing its cause to develop regional markets and value chains.
Economic and social benefits
The program generated around 20,980 direct jobs by the end of 2016, and the Moroccan Government received dividends net of taxes of MAD 1.7 billion.