African Business

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.

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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

 ?? ?? Above: African farmers apply fertiliser to their crops.
Above: African farmers apply fertiliser to their crops.
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