OCP leads from the front at EU-Africa Business Summit
The Moroccan fertiliser producer will decarbonise its operations and ringfence supplies of phosphate-based fertilisers in an effort to boost a sustainable transition in African agriculture.
The economic recovery from Covid-19 and the war in Ukraine commanded headlines at the fifth installment of the EU-Africa Business Summit in Brussels. Addressing a diverse audience of business leaders from across the two continents, panel discussions on global food security and energy concerns reflected the essential and everincreasing need for cooperation on issues which will dominate the immediate future and the coming decade.
The war in Ukraine has prompted disturbing meditations on the security of Africa’s food and energy imports. Cut off from Russian and Ukrainian producers that supply half of the continent’s grain imports, African leaders have increasingly called for structural change.
Increased cooperation essential to ensure African food security
The triple impact of the pandemic, war and supply chain issues has exposed systemic fragilities in Africa’s relationship with both Europe and the rest of the world.
In a keynote address for the first panel - ‘EU-Africa Food Security Crisis Time: Towards a Renewed Partnership’ - EU Commissioner for Agriculture Janusz Wojciechowski called for leaders on both continents to prioritise the creation of local and sustainable food supply chains. By pursuing a degree of regional autarky, it is hoped that African governments can insulate their subjects against destabilising oscillations in global trade patterns and attain greater bargaining power on international markets.
Panellists stressed the need for improved cooperation between the EU and African Union (AU). Since 1962, the EU’s Common Agricultural Policy (CAP) has brought increased food security to European households but has often proved disastrous for African farmers. The dumping of heavily subsidised produce, from powdered milk and sugar to poultry, has caused frequent price collapses in African markets over the last decade. Daniel Azevedo, Director of Commodities, Trade and Technology at COPA-COGECA, insisted that the security of global food supply chains can only be ensured through proper consultation with African farmers who, to this point, have been completely excluded from CAP policymaking.
An African perspective on this issue was provided by Godfrey Bahiigwa, Director for Agriculture and Rural Development at the African Union Commission. Mr. Bahiigwa echoed his European counterpart’s calls for consistent dialogue in policymaking and outlined AU plans to make more food available from foreign and domestic sources over the next three months.
The harmonisation of food standards across the continent will be a crucial step in the development of the African Continental Free Trade Area (AfCFTA). The continent’s cumbersome labyrinthe of border and trade protocols makes it difficult for African importers to adjust food supply chains in times of crisis, but panellist Willi Schulz-Greve expressed hope that AfCFTA can replicate the success of the EU’s single market and pledged the full support of the EU Directorate General for Agriculture and Rural Development in this endeavour.
As the AU accelerates food production in the short-term to offset the effects of the Ukraine War, attendees at the conference were anxious to point out that other more enduring systemic issues must not be overlooked. Iliass El Fali, former Chief Operating Officer and current Advisor to the Chairman and CEO of OCP Group, gave a statement highlighting the need for sustainable developments in African agriculture. Mr. El Fali identified ongoing
debates over food insecurity as a sign of a paradigm shift. As long-held myths about our global capacity for food production are dispelled, efforts at restructuring production after the current crisis subsides will focus on boosting local supply chains while restoring soil health through sustainable agricultural practices.
OCP will be at the forefront of these efforts, developing customised fertilisers, tailor-made for African local conditions and crop needs, which will regenerate soil and microorganisms in the agricultural ecosystem. The role of fertilisers in agricultural transition cannot be understated: food production would be halved without their use and their phosphorus content is also essential for capturing carbon. Notably, Mr. El Fali announced that 20% of OCP’s capacity will be reserved exclusively for African farmers, who will also receive training in the use of new products.
EU and Africa must overcome conflicting objectives to secure energy supply
The reliance of the EU on Russian oil and gas has ensured that the security of Europe’s energy supply has remained high on the agenda of continental policymakers in recent months.
Having announced plans to replace all Russian fossil fuels by 2030, the EU has found itself scrambling for new suppliers. Africa is well-positioned to take advantage: Egypt and Algeria have developed facilities for the production and export of liquefied natural gas (LNG) in recent years and the European Commission is now considering turning to the vast untapped potential of LNG reserves in Nigeria, Senegal and Angola.
Consensus on the conference’s second panel – ‘Diversifying the Energy Supply for a Resilient International Energy Market: Focusing on the Role of Hydrogen’ – held that Africa can become a key strategic partner for Europe but that this partnership must focus on a transition to greener energy.
Explaining OCP’s plans to decarbonise its operations entirely by 2040, Hanane Mourchid, OCP’s Director of Sustainability and Green Industrial Development, highlighted the unique potential of subSaharan Africa to become the world’s leading producer of green hydrogen. “The plan on green industrialisation should first and foremost consider the importance of strengthening Africa’s electrification”, said Ms. Mourchid. “Many African countries have undeniable natural assets for renewable energies, a potential lever for a just transition.”
OCP hopes to provide a model to other large manufacturers by decarbonising its whole supply chain, starting with a transition to electricity produced by green hydrogen. A highly versatile element, hydrogen is forecast to play an unavoidable role as emission-intensive industries including steel, petrochemicals and transport adjust to an increasingly climate-conscious business environment. Building a hydrogen-based economy which meets the demands of 21st century consumers will unlock millions of jobs worldwide and reinforce growth in energy-intensive industries. But as OCP explores options for scaling operations in a nascent sector it is clear that African governments will need to simplify regulations and invest in improved logistical infrastructure to support a process which ravenously consumes both water and electricity.
Securing an energy transition which benefits both Europe and Africa may prove challenging. Alfonso Medinilla, Head of Climate Change and Green Energy Transition at the European Centre for Development Policy Management (ECDPM), made it clear that the two continents must reconcile starkly different objectives in order to achieve shared progress. While Europe is primarily concerned with diversifying its energy stock and converting heavy industry to carbon neutrality, Africa remains fully engaged by the task of delivering energy coverage to large swathes of the continent which remain unconnected. Convincing African governments to invest in expensive green technologies will be difficult when the exploitation of LNG reserves presents a tried and tested model for economic development.
Eni’s Luca Giasanti called for European investment in African biofuel production, which will allow nations’ budgetary allowances to be directed towards simultaneous developments in agricultural self-sufficiency. ■
The role of fertilisers in agricultural transition cannot be understated: food production would be halved without their use and their phosphorus content is also essential for capturing carbon