Morocco secures $211m loan to improve water security

EBRD

The European Bank for Reconstruction and Development (EBRD) has approved a €200 million ($211 million) loan to Morocco’s phosphate-based fertiliser producer OCP Group to enhance water security by developing new desalination facilities.

The funding will support the construction of two seawater desalination facilities for OCP Group at its industrial complexes in El Jadida and Safi.

With a combined capacity of 35 million cubic meters annually, these facilities will ensure a sustainable water supply for fertiliser production, addressing the rising global demand for sustainable agricultural solutions critical to food security.

Morocco faces acute water stress, with annual water availability per capita at just 790 cubic meters. The industrial hubs of El Jadida and Safi are situated in highly stressed catchment areas, where water demand surpasses 80 percent of the available freshwater supply.

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The new desalination facilities will enable OCP Group to further reduce its use of freshwater for its water-intensive industrial processes. This shift is especially crucial as the region faces increasing droughts, allowing the company to contribute to more sustainable water management in a highly strained environment.

The investment aligns with the EBRD’s strategy for Morocco and its green economy transition approach 2021-25.

The company aims to reduce annual water consumption by 3 million cubic meters and transition to sourcing 100 percent of its water from non-conventional sources, including desalination and wastewater reuse.

Morocco, a founding member of the EBRD, has benefitted from the bank’s resources since 2012. To date, the development bank has invested more than €4.7 billion in the country through 105 projects.