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Morocco’s phosphate giant OCP put to test as Africa’s fertilizer market heats up

Global players are taking an interest in the African fertilizer market, putting the dominant position of Morocco's phosphate producer to the test.

This picture taken on May 13, 2013 shows untreated phosphate being dropped off on a montain at the end of a conveyor belt at the Marca factory of the National Moroccan phosphates company (OCP/public), near Laayoune, the capital of Moroccan-controlled Western Sahara. - As a global leader in the market for phosphate and its derivatives, OCP has been a key player in the international market since its founding in 1920, the worlds largest exporter of phosphate rock and phosphoric acid and one of the worlds large
To:

Al-Monitor Pro Members

From:

Francisco Serrano

Journalist and analyst specialized in North Africa

Date:

Mar. 13, 2023

Bottom Line:

Morocco’s phosphate producer, the Office Chérifien des Phosphates (OCP), has seen its turnover jump to a record  Dh114.57 billion ($11.034 billion) in 2022, driven in large part by a spike in global phosphate and fertilizer prices which peaked last April. With 70% of global phosphate reserves, OCP is one of the world’s largest industry players, gobbling up some 31% of the global phosphates trade. The company operates across four continents but its expansion has been most notable in Africa. That said, other global players have also taken an interest in the African market in recent years, with fertilizer producers from countries such as Saudi Arabia and Russia now competing for a larger share of the pie, especially to the east of the continent. In this context and as price volatility looms, OCP’s dominant position, especially in Africa, will be put to the test in the coming months and years.