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BusinessEconomyEnergyINVESTMENTMorocco

Morocco present their new green investment plan to boost Low-Carbon Economy

by Radarr Africa
written by Radarr Africa

Morocco’s fertilizer giant OCP Group presented their new green investment plan to King Mohammed VI in a ceremony held in the Royal Palace in Rabat on Saturday.

The investment plan covers the period between 2023 and 2027, as well as a memorandum of understanding (MoU) between the group and the Moroccan government.

Aiming to consolidate OCP’s international position, the investment plan totals $13 billion dollars (MAD 130 billion) over the four-year period.

The new plan is in line with King Mohammed VI’s instructions relating to the need for a faster transition toward a carbon-neutral economy. OCP Group has been working for years to scale up investment in green energy production and carbon-neutral ventures.

The plan mirrors the discussion held during the council of ministers meeting that  King Mohammed VI chaired on November 22, which was entirely devoted to assessing the country’s progress in developing green energy production capacities.

ALSO READ: Morocco Punching Above it’s Weight in terms of developing Green Energy Transition

During the ceremony, OCP group Chairman and Chief Executive Officer Mostafa Terrab officially presented the group’s investment plan. 

Terrab explained that the group seeks to increase its fertilizer production capacity, while also being committed to achieving carbon neutrality before 2040 by boosting reliance on renewable energies. 

OCP Group is currently working to ramp up investment into solar and wind energy to power its industrial facilities by 2027. 

According to the investment plan, the green energy will be used to supply the new seawater desalination capacities in order to meet the group’s needs and provide the areas around OCP sites with drinking and irrigation water.

In addition, the investment plan seeks to end the group’s reliance on ammonia imports, a key component in the manufacturing of fertilizers, as OCP aims to use green hydrogen to cover its ammonia needs. 

The investment plan, Terrab announced, includes supporting programs for Small and Medium-Sized Enterprises (SMEs) operating in the industrial, agriculture, and energy sectors. 

Through the investment, the group hopes to support the emergence of a national innovation ecosystem full of opportunities for the youth. 

The investment plan is expected to back 600 Moroccan industrial enterprises and create 25,000 direct and indirect jobs. OCP Group is a major fertilizer producer and a top exporter of phosphate fertilizers.

By relying on research and development capabilities of the Mohammed VI Polytechnic University (UM6P), the group was able to seize the opportunities technology offers to boost and optimize production.

Thanks to its reliance on state-of-the-art technologies, the group is leading the way in sustainable agriculture and food security.

SOURCE: Morocco news

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AgricultureBusinessEconomyFinance & ServicesNigeria

OCP increases Nigeria’s fertilizer production with establishment of 120MT/h plant in Kaduna state

by Radarr Africa
written by Radarr Africa

OCP Africa has increased Nigeria’s fertilizer production and output with the establishment of a 120 metric tones per hour fertilizer blending plant in Kaduna State.

It said the facility had at its core a 120MT/h process blending plant with a dosing system capable of producing macro and micronutrients as well as a liquid dosing feature to boost agricultural production in Nigeria.

ALSO READ: Sterling Bank Nigeria plc grows Q3 profit by 41.52%

“The plant we are here to inaugurate is a strategic investment tailored toward strengthening Nigeria’s fertiliser industry,” the Chief Executive Officer, OCP Africa, Dr. Mohamed Jamali, stated in his remarks at the inauguration of the facility, and made available to our correspondent in Abuja on Sunday.

He added, “This facility is not just about blending fertilizers but about profoundly impacting the country’s agricultural value chain. OCP Africa is committed to contributing to the transformation of food systems in the continent, and Nigeria bears a strategic focus for our company.”

SOURCE: Punch news

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AgricultureBusinessEconomyFinance & ServicesMorocco

Fitch Upgrades Outlook for Morocco’s Fertilizer Giant OCP

by Radarr Africa
written by Radarr Africa

American rating agency Fitch yesterday released a report upgrading its rating for OCP’s long-term issuer default rating from bb to bb+, reflecting the company’s ability to meet its long-term financial obligations.

Yesterday’s Fitch report explains that OCP’s positive outlook is primarily due to the company’s position as a top-three global phosphate fertilizer producer able to offer customers competitive prices.  

A second factor underpinning the upgrade of OCP’s outlook is the recent improvement in Morocco’s outlook, as the majority shareholder of OCP at 94%, the report argues.

OCP’s projected record profits are also a major factor underpinning the enhanced outlook. The group’s revenues (EBITDA) are set to reach a record MAD 50 billion ($4.6 billion) on the backdrop of China’s restricting fertilizers export.

While fertilizer prices are expected to stabilize in the upcoming two years, the group plans to increase production more than offsets the drop in prices. Fitch expects OCP’s revenues to reach MAD 40 billion ($3.6 billion) in 2023, and roughly MAD 24 billion ($2.2 billion) in 2024.

ALSO READ: Morocco’s Afriquia Gaz Acquires Total Energies’ Mauritanian Subsidiary of French Energy group

Fitch forecasts that OCP is set to strengthen its market position as a leading producer and exporter of phosphate fertilizers. The group’s strategy to focus on providing tailor-made fertilizer while boosting its market footprint would allow the company to maintain long-term stable profit margins.

Noting the company’s strategy in dealing with current supply bottlenecks, Fitch maintains that while rising ammonia and sulfur prices increased the production cost in 2021 and the first half of 2022, high fertilizers prices and low production cost would have cushioned the effect of rising production costs.

OCP historically relied on Russia to secure half of its ammonia requirement. After the start of the Ukraine war, the company turned to the Middle East, Trinidad, and Tobago, and the US, Fitch explains, adding that the recent joint venture agreement with Koch Ag & Energy Solutions would support the company to secure future needs of raw materials.

SOURCE: Morocco news

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AgricultureBusinessEconomyKenya News

Kenya plans To Import 6-Million bags of Fertilizer Ahead Of Long Rainy Seasons

by Radarr Africa
written by Radarr Africa

Kenya plans to import an additional 6-million bags of fertilizer ahead of the long rainy season of March 2023.

President William Ruto said his Government will import varieties of fertilizers such as DAP, NPK, among others.

Ruto said extra fertilizers will help bridge a 10-million maize deficit gap that the country is currently grappling amid food insecurity. “We have also made arrangements to make another 6 million bags of various types of fertilizer available for the long rains season,”

“We have also asked county governments to work with us on last-mile delivery to centres close to farmers,” the President said during his Mashujaa Day celebration speech.

Last month, the treasury set aside Sh3.6 billion for the fertilizer subsidy programme amid President intervention. The Head of State ordered price be cut by a half.

Expecting high demand, Agriculture Ministry capped the number of bags a farmer can get at the National Cereals and Produce Board (NVPB) at 100.

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Under the programme, farmers were expected to pay Sh3,500 for a 50-kilogram from Sh6,500. “For example, maize production suffered a deficit of more than 10 million bags,”

“Our government’s first intervention to address the fertiliser challenge and make it available to counties and regions that plant in the short rain season, was to import 1.5 million 50kg bags and distribute them at a lower cost of Ksh3,500,” President added.

Kenya’s fertilizer market has been impacted by the ongoing Ukraine-Russia war, which are among the world’s biggest producers as well as depreciation of local currency. For example, Kenyan shilling has depreciated from Sh109.17 a dollar in 2020, to Sh121 a dollar currently.

“But in the medium term, the government plans to have fertilizer manufactured in partnership with EAC countries in our region.”

SOURCE: Capital business

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AfricaBusinessEgyptMarketsNewsNorth AfricaNorthern Africa

Egypt’s chemical & fertilizer exports hit $4.336B in H1

by Radarr Africa
written by Radarr Africa

Egypt’s exports of chemical and fertilizer industries rose by 35 percent in the first half (H1) of 2022 to stand at $4.336 billion against $3.217 billion in the same period last year.

The Chemical and Fertilizers Export Council (CEC) said that the sector’s exports represented 22 percent of Egypt’s non-petroleum exports.

The exports of fertilizer products came at the top of the sector’s exports, registering $1.480 billion at a 54 percent uptick against $960 million in the same period last year.

Egypt’s exports of plastic and rubber products hit a 12 percent increase during the first half of 2022 to reach $1.363 billion compared with $1.213 billion.

Inorganic chemical exports recorded $677 million at 148 percent rise against $273 million.

The detergents sector also leapfrogged by 15 percent to stand at $144 million compared with $125 million; whereas the organic chemical exports receded 13 percent to record $131 million against $151 million.

Exports of paper and cardboard products plunged by 3 percent registering $117 million compared with $120 million in the first half of 2021.

Exports of glass products increased by 18 percent to reach $116 million compared with $98 million.

Exports of dry cells and batteries rose by 10 percent, hitting $22 million compared with $20 million for the same period last year. 

Source: Egypt Today

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AfricaEconomyPolitics

China comes to Zambia’s aid with debt restructuring

by Radarr Africa
written by Radarr Africa

Zambian President Hakainde Hichilema thanked China on Monday for joining international efforts to help his country to restructure its debt after China committed to joining Zambia’s creditor committee at International Monetary Fund meetings last week.

Meanwhile IMF Managing Director Kristalina Georgieva welcomed the country’s economic reform progress, saying she had an “excellent meeting” with Finance Minister Situmbeko Musokotwane and central bank Governor Denny Kalyalya on Monday.

“We share the hope for rapid progress on Zambia’s debt restructuring so the IMF Board can soon consider the authorities’ program.”

In 2020 Zambia became the first country to have defaulted in the pandemic-era when its debt burden reached more than 120% of national output. It reached a staff-level agreement with the International Monetary Fund (IMF) in December 2021 on a $1.4 billion three-year extended credit facility.

“Thank you to China for joining the Common Framework, for agreeing to join the Common Framework to resolve the debt crisis,” Hichilema told reporters in Lusaka.

He added that authorities were working with fertiliser-producing countries to try to alleviate the pressures of rising fuel and fertiliser prices and also wanted to develop exports of wheat to take advantage of higher prices.

Georgieva said last Thursday that China has committed to joining Zambia’s creditor committee. Sources with knowledge of the meeting said People’s Bank of China Governor Yi Gang said that China intended to co-chair the committee.

China and Chinese entities held $5.78 billion of Zambia’s debt at the end of 2021, according to the most recent Zambian government data. Zambia’s external debt also includes $3 billion in international bonds and $2.1 billion to multilateral lending agencies such as the IMF.

However, Zambian officials have also expressed frustration at the process.

Musokotwane said at events on the sidelines of the IMF meetings last week the debt restructuring process had “stalled” and Zambia had “come here to complain”

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