MOROCCO – OCP Group, the world’s largest phosphate mining and leading global fertilizer group, has inked a US$100 million financing agreement with IFC to expand its value chain in Africa.
The project aims to boost OCP’s economic development agenda in the continent, as it sets up sustainable food systems in the region.
According to IFC, the funds will be majorly channelled towards expanding the fertilizer company’s logistics networks.
The agreement also seeks to increase the availability of fertilizers adapted to local soils and crops, in Cote d’Ivoire, Ethiopia, Ghana, Kenya, Nigeria, Senegal, and Tanzania.
“We are committed to enhancing sustainable and inclusive growth, while maximizing the potential of the phosphate resource. This agreement will allow us to support more crops, more farmers, more communities, more natural environments, and help feed the world.
“This is a new step towards our common goal of developing sustainable agriculture in Africa, helping the continent play its role towards achieving global food security,” said Mostafa Terrab, Chairman & CEO of OCP Group.
The financing will also be used to put in place additional farmer development programs, building on OCP’s previously launched projects with IFC aimed to enhance corporate governance, and promote gender equity.
“This agreement will allow us to support more crops, more farmers, more communities, more natural environments, and help feed the world.”Mostafa Terrab – Chairman & CEO of OCP Group
One of such collaborations includes the strengthening of the rice sector in Cote d’Ivoire and the millet sector in Senegal.
The other was targeted towards helping OCP obtain the leading global business certification for gender equality—EDGE (Economic Dividends for Gender Equality).
“The partnership with OCP is part of IFC’s strategy to promote regional integration through the support of a Moroccan champion expanding into Sub-Saharan Africa, creating jobs and encouraging the transfer of technologies.
“Through our partnership, small holder farmers will be able to access climate smart agriculture practices, increase productivity thus improving their livelihoods; and communities will be able to better withstand the impact of climate change,” said Makhtar Diop, IFC’s Managing Director.
IFC is committed to combatting poverty and creating opportunity in Africa while helping the region endure the economic fallout of COVID-19.
In a bid to support its expansion plan, the plant nutrition leader, recently signed a 7-year US$350 million Term Loan Facility with African Export-Import Bank (Afreximbank).
The financing is part of Afreximbank’s remit to advance regional trade in Africa where its support is prioritized towards activities of African multinational corporations dubbed “Intra-African Trade Champions” – reflecting their status as key actors in the expansion and acceleration of Intra-African trade.
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