- IFC is disbursing a $108 million loan to fertilizer maker OCP Group aimed at funding a 219Km long water distribution project in Morocco.
- This financing will help sustain OCP Group’s phosphate plant and provide water to farmers, households, and businesses in the country.
- The new pipeline is expected to be powered entirely by renewable energy by 2030.
A new initiative seeks to lessen the biting water crisis in Morocco while at the same time enhancing plans to tackle food insecurity in Africa. The World Bank’s private lending arm, the International Finance Corporation (IFC) is disbursing $108 million loan to the OCP Group to transform water management in Morocco and enhance food security projects in the country.
The OCP Group is a pioneer in plant nutrition and the production and usage of phosphate-based fertilizers.
According to an update from the IFC, the partnership will seek to address two of the most pressing issues in the region—water scarcity in Morocco and food insecurity across Africa.
The lender has advanced $108 million loan OCP Group aimed at funding a major water infrastructure project in Morocco. Additionally, the funding will help sustain OCP Group’s fertilizer production and also provide vital water resources to local farmers, households, and businesses in the North African nation.
Harnessed optimally, this project is poised to have far-reaching impacts, fostering resilience and economic growth in a water-stressed region.
219Km water pipeline: A lifeline for Morocco
Central to the initiative is the construction of a 219-kilometer water pipeline and a pumping station that will transport desalinated water from OCP Group’s desalination plants in Jorf Lasfar, on the Atlantic coast, to the company’s production facilities in Khouribga, in central Morocco. The project, which is already well underway, will have a capacity of 80 million cubic meters of water annually—enough to fill over 32,000 Olympic-sized swimming pools.
Morocco has been grappling with severe water stress, a challenge that threatens not only the country’s agricultural sector but also its economic stability. The pipeline project is seen as a game-changer, providing OCP with a reliable source of desalinated water, reducing its reliance on traditional water sources, and freeing up water for local communities and agricultural use.
Citing the significance of this project, Mostafa Terrab, Chairman and CEO of OCP Group, said, “We are grateful for IFC’s support in addressing one of the most pressing challenges of our time – water scarcity. By securing a sustainable water supply, we are enabling the growth of our operations while providing essential resources to local communities. This initiative aligns perfectly with our vision of fostering resilience and food security across Africa.”
OCP Group’s sustainable solution for water scarcity
The water pipeline is just one part of OCP Group’s broader water program, spearheaded by its subsidiary, OCP Green Water. The program is dedicated to ensuring that OCP Group’s water needs are met through 100 percent non-conventional water sources by the end of 2024. This includes investments in desalination and wastewater treatment, with the goal of reaching a production capacity of 560 million cubic meters of desalinated water and 60 million cubic meters of treated wastewater by 2027.
This ambitious plan is part of Morocco’s broader commitment to sustainable development and climate resilience. The new pipeline, expected to be powered entirely by renewable energy by 2030, will not only secure water for OCP’s operations but also provide additional capacity for local communities, helping them withstand the impacts of climate change.
Makhtar Diop, IFC’s Managing Director, stated, “Water scarcity is a major obstacle to economic development in parts of Africa. This innovative project demonstrates how businesses can develop solutions to complex development challenges, with tangible impacts on communities. By supporting OCP’s pipeline, we are not only addressing its water needs but also contributing to food security and climate resilience across Africa.”
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Linking water to food security in Africa
The implications of this project can extend far beyond Morocco. OCP Group is one of the world’s largest exporters of phosphate-based fertilizers. The company plays a critical role in supporting food production in Africa.
By securing a sustainable water supply, OCP Group can continue to produce fertilizers that are essential for high-value crop production across the continent.
In Africa, where food insecurity remains a big challenge, access to fertilizers is critical. OCP Group’s efforts to stabilize its production through innovative water management will help ensure that African farmers can access the farm input they need to boost crop yields and food production. This, in turn, will help support livelihoods and strengthen food security across the region.
“Together with IFC, we are paving the way for a sustainable and prosperous future. By securing water for our operations, we are contributing to Africa’s food security, fostering resilience, and promoting inclusive economic growth,” noted Mostafa Terrab.
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A broader vision for sustainable development
The IFC-OCP partnership is closely aligned with both organizations’ sustainability goals. For IFC, this project is part of a broader strategy to promote green and inclusive growth in Morocco and across Africa. The investment in water infrastructure supports climate resilience and is expected to have long-term benefits for local communities, businesses, and the region’s agricultural industry.
For OCP Group, the project is a key component of its sustainability strategy, which includes investments in renewable energy, gender equality, and green fertilizer production. Since 2021, IFC and OCP Group have collaborated on various initiatives aimed at developing sustainable food systems in Africa, building solar plants, and promoting gender equality within OCP’s workforce.
This joint effort reflects a shared belief in the power of partnerships to address complex global challenges. As Makhtar Diop noted, “This project is aligned with IFC’s climate priorities and supports Morocco’s vision for sustainable development. By working together, we are creating solutions that build resilience and promote prosperity in the region.”
Water, food, and climate resilience
As construction on the pipeline nears completion, there is growing optimism about its potential to address Morocco’s water crisis and contribute to food security across Africa. Once operational, the pipeline will not only support OCP Group’s fertilizer production but also provide a lifeline to local communities, helping them navigate the challenges of water scarcity and climate change.
IFC-OCP Group partnership sets a powerful example of how businesses can drive meaningful change by developing innovative solutions to pressing global challenges. As Africa continues to face the dual threats of water scarcity and food insecurity, the success of projects like this one will be critical in building a more resilient and prosperous future for all.
