Walta Information Center
By Pawlos Belete
Just a month after it sealed a 3.7 billion USD joint venture fertilizer factory deal with Ethiopian government, OCP Group has signed a strategic agreement with Nigerian billionaire, Aliko Dangote, to build a fertilizer production platform.
The new asset requires an investment out lay of 2.5 billion USD. The fund has been already committed by the two Groups. As part of its African strategy, OCP Group intends to strengthen its presence in Nigeria as well.
According to a Press Release Walta Information Center has received, OCP has signed the agreement with Dangote Group in Abuja at the beginning of this month.
The signing ceremony was graced by presence of King Mohammed VI of Morocco and the President of the Federal Republic of Nigeria, Muhammadu Buhari.
The project hopes to maximize Moroccan phosphate and Nigerian natural gas reserve.
The project which is in its first phase is expected to provide pooling of complementary production units, currently under construction at Jorf Lasfar and Lekki Free Zone of Nigeria.
Like the Ethiopian case, the new structure will be owned by OCP Group and Dangote Industries.The new joint venture will develop an additional fertilizer plant in Nigeria with an initial annual capacity of 1 million tons by 2018. That could eventually increase to 2 million tons.
This new capacity will respond to the strong fertilizer demand growth in Nigeria and countries in the region.
Meanwhile, OCP Group has also signed a memorandum of understanding with the Fertilizers Producers and Suppliers Association of Nigeria (FEPSAN) to secure, for the next three years, a supply of phosphate fertilizers that are adapted to the needs of Nigerian farmers.
The partnership also aims to support the development of partners’ production and distribution capacities and to promote agricultural sector development initiatives in Nigeria.
Under this agreement, the collaboration between OCP Group and FEPSAN will extend to the entire agricultural value chain, starting from the implementation of fertilizing solutions adapted to Nigerian soils and crops, the availability of these fertilizers on the local market and the implementation of support measures for local farmers.
This collaboration will include securing local supply of fertilizers at competitive prices, sharing a real know-how in the development of local blending structures, promoting innovation and research and development efforts, strengthening local distribution channels and deepening the scope for extending existing agricultural systems.
Last November, Ethiopia and Morocco agreed to develop a 3.7 billion USD fertilizer factory in Dire Dawa. The new deal shows OCP aggressive move to increase its African fertilizer market.
