Rabat – Morocco’s Cherifian Office for Phosphates (OCP) Group has received the Moroccan government’s official approval to launch a company in Romania, in cooperation with Emirati agricultural company Al Dahra.
Morocco’s Head of Government, Saad Eddine El Othmani, with the countersignature of the Minister of Finance, Mohamed Benchaaboun, authorized the phosphate giant’s investment in Romania.
The Moroccan government’s decision to allow the investment came to light in the Official Bulletin of Thursday, January 16.
The newly-founded company is set to be called the South East European Fertilizer Company (SEEFCO). The OCP will acquire 50% of stakes in the company, while UAE’s Al Dahra will control the other half.
The new investment aims to extend OCP’s activities to Romania, but also use the southeastern European country as a hub to expand into Central Europe and Eastern Europe.
By collaborating with the Emirati group, the investment costs for OCP will be significantly lower, with the Moroccan group also benefiting from Al Dahra’s book of business.
The SEEFCO will launch with a capital of $5 million, shared equally between the Moroccan and Emirati organizations.
The mostly state-owned OCP had revenue of $5.88 billion in 2018, scoring an annual increase of 19%.
The new partner, Al Dahra, is a multinational specialized in the cultivation, production, and trading of animal feed and essential food commodities. The company employs around 5,000 workers over 20 countries and caters to more than 45 markets.
The Emirati group’s turnover reaches more than $1 billion annually.
The OCP’s Board of Directors made the decision to invest in Romania towards the end of 2018. The decision is in line with the OCP’s vision to branch out internationally and strengthen its position as a global leader in phosphates.
In September 2019, the OCP signed an agreement with the Ghanaian government to build a fertilizer plant in Ghana by 2024.
The agreement is an essential component of OCP’s international venture, aiming not only to keep the group’s leadership position in terms of agricultural output but also to participate in the pan-African vision to reach food security and stability.