OCP Group, the world’s largest phosphate mining and leading global fertilizer group, and the International Finance Corporation (IFC) have signed a milestone financing agreement.
The partnership will help support OCP in expanding its value chain in Africa, as part of its effort to contribute to the economic development of the continent and to set up sustainable food systems in the region, OCP and IFC said in a joint statement.
IFC’s $100 million financing will help OCP Africa, a subsidiary of OCP, to expand its logistics networks and increase the availability of fertilizers, adapted to local soils and crops, in Cote d’Ivoire, Ethiopia, Ghana, Kenya, Nigeria, Senegal, and Tanzania.
The funds will also be used to put in place additional farmer development programs. Along with this financing, OCP has also launched projects with IFC to enhance corporate governance, and promote gender equity.
“The strategic partnership between OCP Group and IFC continues to grow, and today’s agreement is a testament to the shared values and high level of trust our institutions enjoy. We are committed to enhancing sustainable and inclusive growth, while maximizing the potential of the phosphate resource,” said Mostafa Terrab, Chairman & CEO of OCP Group.
“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,” he noted.
IFC’s Managing Director Makhtar Diop said that “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.”
OCP, which has 21,000 employees, is a major company in Morocco and the largest phosphate exporter in the world. The agreement expands on two earlier partnerships, one aimed at strengthening the rice sector in Cote d’Ivoire and the millet sector in Senegal, the other aimed at helping OCP obtain the leading global business certification for gender equality—EDGE (Economic Dividends for Gender Equality).
IFC is committed to combatting poverty and creating opportunity in Africa while helping the region endure the economic fallout of COVID-19.