Ethiopia, Morocco Sign Agreement to Establish Fertilizer Plant in Dire Dawa

ADDIS ABABA – The Government of Ethiopia signed a joint development agreement with OCP Group, a Moroccan State-Owned Company, to implement a fertilizer production project in Dire Dawa.

The agreement was reached during a high-level delegation visit to Morocco led by Finance Minister Ahmed Shide.

“The visit was used to discuss and reach an agreement to execute a Joint Development Agreement to establish an Ethiopian joint venture company for the implementation of a project that will establish a local fertilizer plant in Ethiopia,” said the ministry of finance on Saturday.

The agreement is based on Feasibility, Conceptual, Environmental and Social Impact Assessment as well as Hydro and Geo-technical studies that have been conducted, it says.
As per the deal, the integrated fertilizer complex will be established in Dire Dawa, using local resources –  Ethiopian gas and Moroccan phosphoric acid.

The project will have an initial estimated investment of approximately USD 2.4 billion during the first phase to develop a 2.5-million-ton fertilizer production unit, combining Urea and NPK/NPS products.

Its production capacity could reach 3.8 million tons per year with the total investment increasing up to 3.7 billion US dollars during the second phase.

It is firmly believed this project will have significant contributions in meeting Ethiopia’s continuously growing demand for fertilizers – primarily Urea and NPS+.

As of 2022, fertilizer imports in Ethiopia will represent 1 billion US dollars, and could potentially reach 2 billion US dollars in 2030.

The ministry affirmed government’s “firm support for agriculture and continues to work tirelessly to find tailored solutions to agricultural and industrial challenges of the country”.