By Ngozi Nwoke
To increase the supply of sustainable water for fertiliser production, farmers and households in Morocco, IFC Group has announced a €100 million loan (about US$108 million) to OCP Group, the world leader in plant nutrition solutions and phosphate-based fertilisers.
The Group said the loan is aimed to support the construction of a 219-kilometer water pipeline and pumping station to transport desalinated water from OCP Group’s existing and planned desalination plants in Jorf Lasfar on the Atlantic Ocean to the company’s production operations in Khouribga, Morocco, adding that it is firmly convinced that leadership and profitability are synonymous with social responsibility and sustainable development.
Chairman and CEO of OCP Group, Mr. Mostafa Terrab said that construction is already well-advanced, and when completed, the pipeline will have a total annual capacity of 80 million cubic meters, equivalent to the water in more than 32,000 Olympic-sized swimming pools.
He disclosed that Morocco is working hard to tackle severe water stress, affecting agricultural production and impacting the country’s economic development. This project will provide a sustainable and reliable source of water for use by farmers, businesses, and consumers in and around Khouribga.
He said: “We are grateful for IFC’s support in addressing one of the most pressing challenges of our time – water scarcity. This project is a testament to OCP Group’s commitment to sustainable development and innovation. By securing a reliable source of desalinated water, we are not only enabling the continued growth of our operations but at the same time also providing essential resources to local communities. This initiative aligns perfectly with our vision of fostering resilience and food security across Africa. Together with IFC, we are paving the way for a sustainable and prosperous future.”
IFC’s Managing Director, Mr. Makhtar Diop, also noted that by supporting the construction of the pipeline, IFC is enabling OCP Group does not only address its own water needs but equally provide vital water resources to communities and support the production of high-value crops, contributing to a more resilient and food-secure future for Africa.
He noted: “Water scarcity is a major obstacle to economic development in Africa, and this innovative project by the Group demonstrates how businesses can develop solutions that tackle complex development challenges. This will not only guarantee supplies for its industrial operations but also provide spare capacity for local communities, building their resilience to climate change.
“This project supports Morocco’s priority for sustainable development and is closely aligned with the World Bank Group’s strategy in Morocco, which includes a strong focus on climate. By 2030, the pipeline is expected to be exclusively powered by renewable sources, improving access to sustainable water resources and increasing resilience to climate shocks. The project also supports IFC’s country strategy for Morocco, which focuses on enabling investments that contribute to the scaling of sustainable infrastructure and promoting green and inclusive growth.
“OCP Group helps feed a growing global population by providing it with the essential elements for soil fertility and plant growth. Headquartered in Morocco and present on five continents, OCP Group has over 17,000 employees and works closely with more than 350 customers around the world. OCP recently launched a green investment strategy dedicated to increasing fertilizer production and investing in renewable energy.”
Diop explained that for more than 60 years, the company has worked with public and private sector partners to support small businesses, manufacturers, agribusinesses, infrastructure, the financial sector, and more in Morocco.
He stated: “Since 2021, IFC and OCP Group have partnered to develop sustainable food systems in Africa, build solar plants and gr