AfDB backs OCP with €450 million guarantee for green investment push

The African Development Bank and Morocco’s OCP Group signed a €450 million partial credit guarantee agreement on Friday aimed at supporting the phosphate giant’s long term green investment program and accelerating its transition toward low carbon fertilizer production.

The agreement will help mobilize €530 million in green financing arranged by French banks Société Générale and BNP Paribas as part of OCP’s broader 2023 to 2030 investment strategy, the African Development Bank said in a statement.

The financing package comes as Morocco’s state linked industrial groups accelerate investments tied to renewable energy, desalination and water efficiency amid rising climate pressures and growing global demand for lower carbon agricultural inputs.

The bank described the mechanism as the first operation of its kind in Morocco, saying it illustrated the lender’s role in using guarantees to attract international capital for projects linked to energy transition and sustainable water management.

Achraf Tarsim, the African Development Bank’s country manager for Morocco, said the institution was using its AAA credit rating to help mobilize international financing for “low carbon fertilizer production, renewable energy deployment and sustainable water management.”

“These are strategic levers for the continent’s food security,” Tarsim said.

OCP, one of the world’s largest phosphate fertilizer producers, has increasingly positioned its industrial strategy around decarbonization and green ammonia production as global fertilizer producers face mounting pressure to reduce emissions and energy dependence.

Younes Kchia, OCP’s chief financial officer, said the agreement marked “a decisive step toward a low carbon and circular industrial model.”

“The support of the African Development Bank strengthens our capacity to invest in solutions that preserve resources, protect soils and support farmers,” Kchia said.

According to the bank, the financing will support projects focused on reducing greenhouse gas emissions, expanding renewable energy capacity and improving water and energy efficiency across OCP’s industrial operations.