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Q&A ON PHOSBOUCRAA

Phosboucraa is a subsidiary of OCP Group, the world’s leading producer and exporter of phosphorous in all its forms, including phosphate-based fertilizers, phosphoric acid, and phosphate rock. Phosboucraa operates in Morocco’s Southern Regions where it mines, beneficiates and markets local ore which represents approximately 2% of Morocco’s phosphate reserves. It is also in the process of opening a state-of-the-art fertilizer complex.

As part of OCP Group, Phosboucraa’s intention is to maximize the positive impact of phosphate by bringing investment and social development to the area. Phosboucraa is the largest private employer in the region with a workforce of more than 1,900 employees, of which 79% are native to the region, a rate which has risen from just 4% in 1977. Since 2017, 96% of new recruits have been native to the Sahara. In addition, some 163 employees from the region are employed by OCP at its other sites (Khouribga, Safi, Casablanca, Jorf Lasfar, Benguerir and Youssoufia). Management has worked hard to ensure that new hires are trained and empowered to take up roles that share in the region’s mineral wealth. We are committed to building a genuinely sustainable business that empowers the communities around Phosboucraa.

Phosboucraa was originally founded in 1962 by the Spanish state-owned entity Instituto Nacional de Industria (INI). In 1976, OCP S.A. became the majority owner of Phosboucraa, and today, Phosboucraa is a wholly owned subsidiary of OCP S.A.

Of Morocco’s 50 billion tons of phosphate reserves located in different ore deposits throughout the country, approximately 2% are in Phosboucraa’s region of operations. Phosboucraa operates a mine and port facility and is also working on a state-of-the-art fertilizer complex.

All profits earned by Phosboucraa are retained and reinvested in the Southern Provinces. No dividends are distributed to OCP S.A., its parent company.

The new ocean wharf which is 3.4km long, is an investment to upgrade the port capacity which previously could process 3 million tons of cargo per year. Today the ocean wharf capacity is being increased to 8.2 million tons per year and OCP is also investing in new washing and flotation units plus new drying and storage facilities to support this significant expansion project.

Phosboucraa is currently engaged in a USD $1.8 billion new industrial development program to move operations up the value chain from raw materials to intermediate products and phosphate-based fertilizers by 2026.

In terms of local wages and revenues generated by local businesses, there is an expected net benefit, both direct and indirect, of some USD 4.8 billion on the Sahara’s economy and the creation of up to 54,000 new full-time jobs in the region. This sum will serve as a sustainable source of prosperity and development for the region far beyond 2026.

At least 79% of Phosboucraa’s employees are local to the region – a significant improvement from just 4% in the 1970’s when OCP initially took a 65% ownership of Phosboucraa. Local recruitment is a central focus, and today 96% of new employees come from the region and are hired locally. Growth of local employees has occurred at all levels. As training and educational opportunities in the region have increased, the percentage of local employees in specialized areas of work, in particular, has risen steadily. Indeed, local employees have gone from 24% of Phosboucraa’s specialized workers in 2002 to over 87% today. Moreover, Phosboucraa’s operations support an additional 50 local companies which operate as subcontractors and in turn employ more than 600 people from the local community.

Yes. 100% of Phosboucraa’s profits are retained and re-invested in the Southern Provinces of Morocco. Such a commitment contributes to operational enhancement and exclusive focus on regional development. It also spans across all aspects – economically, educationally and socially.

The Phosboucraa Foundation was established in 2014 to administer Phosboucraa’s social sustainability programs in the Southern Provinces of Morocco. The Foundation promotes the socio-economic development of the region, both professionally and for the well-being of local communities. The Foundation focuses on four primary areas: encouraging education; improving the local economy; enhancing and promoting the local natural and cultural heritage; and revitalizing the area through urban innovation programs.

USD 59 Million has been invested in the region by the Foundation since 2014, entirely funded by OCP Group and Phosboucraa.

Some 4,500 people trained (skills emergence program)

493 business trainees

157 scholarships (75% of which went to top universities)

210 teachers trained

100+ cooperatives supported (predominantly women)

200+ local projects funded

11+ research projects for regional farming models and biosaline agriculture

1,500+ beneficiaries of a digital inclusion program

60,000+ patients treated by health programs

14,000+ women’s cancer screening

15,000+ young people benefited from capacity building programs

105,000+ camels treated in health campaigns

The Foundation initiated the creation of the Foum El Oued Technopole dedicated to education, R&D and arid agriculture, including a focus on renewable energies. With a USD 228.8 Million investment creating 1,200 new jobs, the Technopole will be housing a world-class research university campus in Laayoune (Mohammed VI Polytechnic University), an R&D center, a high school of excellence, an industrial training center, a business incubator and center, a cultural center, a museum, commercial, residential, educational and sports facilities.

This project’s main objective is to contribute to the sustainable development of the Sahara and to the well-being of the local population by boosting socio-economic development and stimulating the local economy. This is done in collaboration with reputable local and international partners to stimulate local investments and create more job opportunities.

The Technopole entails an investment of USD 228.8 Million and is home to a university, schools and a skills center, cultural and sporting facilities, as well as facilities to partner with local businesses. The university, which is a branch of the Mohammed VI Polytechnic University (UM6P) in Benguerir, is pivotal in bringing world-class research and education to the Southern Provinces of Morocco.

The impact of the site will reach across the region and Africa. The Technopole will improve educational outcomes, allowing students to stay in their region while studying at the highest level. This is one way to combat ‘brain drain’ (the movement of highly-skilled workers away from the region), and empower more students who may have been deterred by either the cost or distance of other establishments to study. Education is the foundation of progress. Students are the real catalyst for change – sharing ideas and skills throughout their working lives so that knowledge spreads within the entire ecosystem.

Beyond hiring and secondary employment, Phosboucraa has invested in skill-building within the local community to enhance access to opportunity. The Phosboucraa Foundation has established learning centers in Laayoune and Dakhla in partnership with Amideast to develop capabilities and improve employment opportunities for people from the region, focusing in particular on youth and women. Over 4,500 young people from the community have been trained at the Laayoune skills center alone.

Phosboucraa has also built preschools and primary schools, each with a capacity of over 1,340 pupils, for the children of Phosboucraa employees and the broader community. A middle school and high school in Laayoune with 18 classes and 560 students is also currently being developed. This is in addition to a specialized training center in Laayoune which prepares workers from the region for employment specifically at Phosboucraa.

The goal is to provide the local community with the capacity and resources to address the challenges and opportunities of the region. It has been OCP’s experience that these investments create virtuous cycles in which local development and innovation sustains and enhances life in the region as well as the company. It is a philosophy adopted wholeheartedly by Phosboucraa.