AFD and OCP forge €350 million partnership for green investment in Morocco

In a significant move towards sustainable development, the France Development Agency (AFD) and Morocco’s leading fertilizer producer, OCP, have solidified their collaboration by signing a €350 million financing agreement aimed at bolstering OCP’s ambitious green investment program.

This program, valued at a staggering $13 billion, is set to span from 2023 to 2027. It is designed to enhance OCP’s fertilizer production capacity while aligning with the group’s commitment to achieving carbon neutrality by 2040.

Central to OCP’s vision is the ambition to power all its industrial facilities with renewable energy by 2027. This energy will be sourced from wind, solar, hydroelectric, and cogeneration methods.

In a recent statement, OCP reiterated its goal of utilizing 100% clean energy by the designated year, also emphasizing the need to meet its industrial water requirements through sustainable and non-conventional sources.

The program aims to significantly increase OCP’s production of decarbonized fertilizers, particularly by incorporating green ammonia. This initiative is a critical step towards reducing the company’s carbon footprint and achieving full carbon neutrality across its entire value chain by 2040.

The initiative is not solely focused on production; it also seeks to benefit farmers across Africa by supplying green fertilizers tailored to enhance agricultural yields. These fertilizers will be adapted to local crops, climates, and soil conditions, ensuring that they effectively meet the needs of the farming community.

Funds from AFD will be allocated based on the achievement of specific performance indicators, which will emphasize increasing production capacity for clean energy and non-conventional water sources, as well as the development of green hydrogen and ammonia production. Additionally, OCP plans to integrate climate and biodiversity considerations into its risk management strategies.

OCP also highlighted its recent collaboration with AFD on a multi-stakeholder platform called “Mobilizing for Agricultural Value Chains in Africa,” spearheaded by INNOVX. This platform aims to structure and mobilize financing mechanisms for agricultural value chains in Africa, strengthening food production and distribution systems while supporting innovative initiatives and start-ups across the continent.

The agreement's signing coincides with a high-level visit by an AFD delegation to Morocco, led by General Director Remy Rioux. This visit includes discussions with senior officials and representatives from various institutions to enhance cooperation at multiple levels.

During this visit, AFD announced a €150 million investment plan targeting Morocco’s southern provinces, specifically in Laayoune and Dakhla. This pledge aligns with France’s recognition of Morocco’s sovereignty over its southern provinces in Sahara.