OCP the 95% state owned Moroccan phosphate producer, has partnered with the Ethiopian Ministry of Public Enterprise to build a fertilizer plant that will supply domestic demand and generate exports.
OCP has agreed to invest $2.4 billion (£1.9 billion) to build the plant in Dire Dawa, which will combine OCP’s Moroccan phosphoric acid with Ethiopian potash and ammonia to make 2.5 million tons of fertilizer per year. A second phase will see a further $1.3 billion investment to increase the plant’s capacity to 3.8 million tons/year by 2025.
Having a domestic producer will reduce Ethiopia’s reliance on expensive imports of fertilizer, enabling farmers to improve yields and potentially providing valuable exports.
[www.ethiosun.com]