Morocco’s OCP Group invests US$14B to expand operations
MOROCCO – Morocco’s fertilizer giant, Office Chérifien des Phosphates (OCP), has announced plans to invest 139.1 billion dirhams (US$14.06 billion) in the development of its operations from 2025 to 2027.
This ambitious investment strategy was detailed in the report on public establishments and enterprises included in the Draft Finance Law for the upcoming 2025 budget year.
The OCP Group, a pivotal player in the global fertilizer market, plans to allocate its investments as follows: US$4.5 billion in 2025, US$5.3 billion in 2026, and US$4.3 billion in 2027.
While specific projects funded by this investment have yet to be disclosed, the company has already embarked on various initiatives to expand its operations.
In its financial results for the first half of 2024, OCP reported the initiation of its Mzinda Meskala strategic program.
This program focuses on significant production capacity expansions in two critical regions of Morocco: the Mzinda-Safi Corridor and the Meskala-Essaouira Corridor.
The Mzinda-Safi Corridor aims for an annual capacity of 12 million tonnes of phosphate rock, 3 million tonnes of phosphoric acid, and 8.4 million tonnes of fertilizer by 2028.
Meanwhile, the Meskala-Essaouira Corridor has set a target of 20 million tonnes of rock, 1 million tonnes of phosphoric acid, and 2 million tonnes of fertilizer by 2030.
As part of its commitment to environmental stewardship, the company aims to achieve 100% renewable energy use for its facilities by 2027, enhancing its operational sustainability in an increasingly competitive market.
Financially, the OCP Group demonstrated robust growth, reporting a 15% increase in revenue to 43.2 billion dirhams (US$4.32 billion) in the first half of 2024, driven primarily by a rise in export volumes of its main products.
The fertilizer segment alone accounted for 69% of sales, generating approximately US$3 billion, followed by phosphoric acid (11%) and phosphate (7%). Key markets for OCP’s exports include Africa, South America, and Europe, contributing to 26%, 25%, and 20% of sales by value, respectively.
In addition to its domestic growth, OCP has been proactive in enhancing its international presence.
Recently, the group signed a landmark memorandum of understanding (MOU) with Mali’s Ministry of Agriculture in an initiative to reshape Mali’s agricultural landscape.
This partnership, supported by the World Bank, sought to boost the country’s agricultural productivity through sustainable practices and advanced soil health management, ultimately benefiting Mali’s vast network of smallholder farmers.
In addition, in May, the fertilizer giant OCP Group and the United States Agency for International Development (USAID) announced a US$100 million partnership deal to address challenges hampering Africa’s agricultural potential.
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