Moroccan fertilizer company eyes $500mln investment in Ethiopia

Addis Ababa, February 27, 2016 (FBC) -The Morocco-based OCP Group, which specializes in fertilizer manufacturing, is conducting talks with Ethiopian authorities to set up a manufacturing plant in Ethiopia at a cost of half a billion dollars.
OCB Group is considering Ethiopia as an option in Africa taking into account the country’s gas resource and potential, Tarik Choho, chairman of OCP Group, told The Reporter during an event held in Marrakesh, Morocco from February 25-26.

According to him, OCP has been conducting feasibility studies and had identified which types of fertilizers it plans to manufacture in Ethiopia depending on the soil type.

Hence, the company will erect a urea and potash processing factory and if things turn out as expected, the plant will require some 530 million dollars, Choho said.

A similar plant has been recently built and inaugurated in Morocco with the same amount of money, he said.

The recent gas pipelines Ethiopia is planning to construct has paved the way for OCP Group to consider setting up a plant in the country.

In addition to that, Ethiopia is preparing to mine and export potash, which the fertilizer manufacturer said is another advantage.

The plant, which will be erected in Ethiopia, will be manufacturing fertilizer from Nitrogen, Potassium and Phosphorus.

The chairman said that discussions are well under way but pacing the time is what he needs to see from the Ethiopian side.

Currently, a task force is to be set up to look into the prospects of how the fertilizer business can be implemented in Ethiopia.

According to OCP Group, Ethiopia is the largest single buyer of fertilizer from the group as well as the largest consumer in Africa next to South Africa and Nigeria.

As a major buyer, Ethiopia stands top in Africa for OCP, Imane Belrhiti, vice president of sales for Africa at OCP Group said.