IFC plans $111.3 million loan to OCP for fertilizer project in Morocco

The International Finance Corporation (IFC) is considering a corporate loan of up to €95 million ($111.33 million) to OCP S.A. as part of a broader €190 million ($222.65 million) project to transform industrial waste management in Morocco’s phosphate sector.

The proposed financing will support the development of a large-scale inland phosphogypsum storage facility at Jorf Lasfar, with a capacity of up to 22 million tons, marking a shift toward more sustainable handling of fertilizer by-products.

Driving sustainable fertilizer production

Phosphogypsum, a by-product of phosphoric acid production, has traditionally been discharged into the ocean. The planned facility is designed to change that, enabling safe inland storage while unlocking future opportunities to recycle and reuse the material.

The project aligns with IFC’s strategy to promote environmentally responsible industrial practices, particularly in high-impact sectors such as fertilizer manufacturing. By supporting improved waste management, the initiative is expected to enhance resource efficiency and reduce environmental risks.

In parallel, IFC is working with OCP through advisory services to develop viable pathways for the economic valorization of phosphogypsum, reinforcing circular economy practices across the value chain.

OCP’s global dominance and state backing

Headquartered in Morocco, OCP is the world’s largest producer and exporter of phosphate rock and phosphoric acid, with fully integrated operations spanning mining, processing, and global distribution. The company is majority-owned by the Moroccan state, which holds 94.12%, with the remaining 5.88% held by minority shareholders.

The fertilizer giant has been strengthening its governance framework, supported by an ongoing advisory partnership with IFC focused on corporate governance, risk management, and compliance enhancements.

Strategic investment ahead of board decision

The proposed investment, disclosed ahead of a projected board date of May 11, 2026, remains subject to approval. Classified under IFC’s environmental Category B, the project is expected to have limited adverse impacts, with mitigation measures in place.

If approved, the financing would position OCP to lead in sustainable fertilizer production while setting a benchmark for phosphogypsum management globally, potentially paving the way for scalable solutions across the industry.