Output from joint venture between Ethiopian government and Moroccan state phosphate group will exceed domestic demand

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Source: Shutterstock

Ethiopia currently relies on expensive imports of fertiliser

OCP, the 95% state owned Moroccan phosphate producer, has partnered with the Ethiopian Ministry of Public Enterprise to build a fertiliser 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 tonnes of fertiliser per year. A second phase will see a further $1.3 billion investment to increase the plant’s capacity to 3.8 million tonnes/year by 2025.

Having a domestic producer will reduce Ethiopia’s reliance on expensive imports of fertiliser, enabling farmers to improve yields and potentially providing valuable exports.