Ethiopia, Morocco Agree to Establish 6.1 Billion USD Integrated Fertilizer Complex

457

September 18,2021 (ENA) Ethiopia and Morocco have inked an agreement that enabled them to execute over 6 billion USD joint fertilizer development project in the eastern city of Dire Dawa. 

The agreement was signed between OCP Group, a Moroccan state-owned phosphate rock miner, phosphoric acid manufacturer and phosphate fertilizer producer, and the Government of Ethiopia to implement the project, according to Ministry of Finance.

The project will have an initial estimated investment of approximately 2.4 billion USD during the first phase and USD 3.7 billion in the second phase, it was learned.

In the first phase the project could develop 2.5 million-ton fertilizer production unit and produce could reach 3.8 million tons per year in the second phase.

The project is expected to have significant contributions in meeting Ethiopia’s continuously growing demand for fertilizers, primarily Urea and NPS+.  As from 2022, fertilizer imports in Ethiopia will represent 1 billion USD, and could potentially reach 2 billion USD in 2030.

The agreement was reached during a high-level delegation visit to Morocco led by Finance Minister Ahmed Shide , according to Ministry of Finance.

The agreement is based on feasibility, conceptual, environmental and social impact assessment and hydro and geotechnical studies that have been conducted, the source stated.

According to the agreement the integrated fertilizer complex will be using local resources such as Ethiopian gas and Moroccan phosphoric acid.