Morocco signed an agreement on Saturday to invest over two billion dollars in Ethiopia over a five year period to build a fertilizer factory.
The $2.4 billion to be invested between 2017 and 2022 in the 100 acre factory near the eastern city of Dire Daoua is expected to make Ethiopia self-sufficient by 2025.
The deal was signed during the official visit of Moroccan King Mohammed VI to Ethiopia to strengthen its political and South/South partnership.
The agreement is between Moroccan phosphate producer OCP Group and the Ethiopian government with the former financing the project.
“This is our largest investment outside Morocco. Our goal is to reduce Ethiopia’s dependence on fertilizer imports,” he added. ,” OCP Group’s Chief Executive Officer Mostafa Terrab told the media.
Details of the agreement were not made available, but the factory is expected to produce 80% of Ethiopia’s fertilizer by 2022 once the first phase is finished.
Morocco also signed seven public bilateral conventions and agreements to cover areas including air services, tax cooperation, investment protection, agriculture and renewable energy.