Morocco’s OCP secures a $350 million loan facility from Afreximbank
Morocco’s phosphate group, OCP, has secured a $350 million loan facility from the African Export-Import Bank (Afreximbank) that will support the Group’s expansion plans across Africa.
The Pan-African multilateral EXIM Bank announced earlier this week the signing of the 7-year $350 million term loan facility to provide financing to OCP Group.
The bank, through its President Professor Benedict Oramah, expressed satisfaction with the agreement, describing OCP as a “major player” in the fertilizer industry which has a “strong presence across Africa.”
Through this partnership with a major player in the fertilizer industry, Afreximbank is fulfilling its mandate of facilitating export development in the continent and promoting intra-African trade and investments, Professor Benedict Oramah said.
“This is an important transaction which supports the development of Africa’s agricultural capacity,” he said, emphasizing that “OCP Group’s products, which are tailored to the needs of African farmers, will generate broad and deep improvements to the continent’s ability to compete in international agricultural markets.”
“This facility also has symbolic value, as it marks the beginning of a productive and close relationship between Afreximbank and OCP Group. We are delighted to announce this facility, as the first demonstration of the strong relationship the Bank enjoys with Morocco,” he added.
OCP will mainly use the Afreximbank funding for its industrial project in Nigeria valued at $1.4 billion, which will be jointly supplied by Nigeria’s gas and phosphate transported from Morocco. The ultimate goal is to produce 750,000 tons of ammonia and 1 million tons of phosphate fertilizer per year by 2025, the group said earlier this month, when signing several related partnership agreements with Nigeria.
Nigeria is part of a lengthy lineup of partners, working with the OCP in Africa.
Over the past decade, the Group has consolidated its position in many African countries and, as an African player, is committed to developing South-South cooperation, placing Africa at the heart of its development plan to help strengthen the entire African agricultural ecosystem, by providing the continent with the right quantities and qualities of fertilizer, contributing thus to African smart and sustainable agriculture plans.
One of the OCP projects is a platform to ensure knowledge sharing between African partners on soil mapping.
The group believes that Africa will become a world leader in sustainable farming, using local resources to realize the continent’s vast agricultural potential and help feed its growing population.
“We are committed to working hand-in-hand with the people who will make this a reality, African smallholder farmers, enabling them to move from subsistence to a more modern way of farming,” the group had emphasized.
The OCP Group is one of the largest producers of phosphates in the world, with solid establishments on five continents and more than 160 customers.