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Why Morocco’s OCP and Africa Need Each Other, By Jasper Hamann

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Nearly all African ambitions depend on thriving agriculture to support modern economies across the continent.

Having a thriving domestic agricultural sector is a key factor in reaching nearly all of the buzzwords that regularly roll off politicians’ tongues. Source: IDFC/Fertilizer Focus

Rabat – Countries across the African continent currently stand at a crossroads, facing choices that could determine their fate for decades or even centuries to come. While developed countries around the world are currently focusing on Artificial Intelligence (AI) as the driver for economic growth in the coming years, African countries are still struggling with issues that keep their economies stuck in the 20th century. Left behind?

Decision-makers at last week’s World Economic Forum summit in Davos salivated over the potential of AI as a means to boost their primarily service-oriented economies. Meanwhile, most African countries are still struggling to fully industrialize. African economies are making a sincere effort to reach a stage of development, that of an industrial manufacturing economy, which is a type of economy that the richest countries in the world have abandoned decades ago…

This disturbing trend can be attributed to a multitude of factors, and there are various interesting articles that point to corruption, poor leadership, the lingering effects of colonialism, as well as ongoing conflict and poverty as the prime or even sole reason for Africa’s continued lagging behind in the global economic race. While these articles often provide well-reasoned arguments to point to one factor or the other, in reality it appears to be exactly the complexity of these intertwining issues that has kept African nations where they currently are.

So how can such a complex web of issues be resolved, on a continent that has witnessed an onslaught of coup-d’etats, famine, drought, violent extremism and poverty? I would argue that the key is to start with the absolute fundamentals, the core drivers of stability and sustainable growth. This is the first stage that developed nations have taken, and it is a stage only a handful of African countries have (partially) reached.

I am talking about a country’s ability to produce enough food to feed its population, and the resulting freeing up of labor to support other sectors of the economy. Most European countries reached this stage during the “agricultural revolution,” between the 17th and 19th century, which freed up large parts of the population to instead work in trade, industry, the arts, or academia.

Often referred to in the rather abstract term of “food security,” this phase is crucial in a nation’s development because it creates the foundation for a stable economy where the nation’s talents can flourish.

African ambitions

Still, African nations are definitely not lacking vision when it comes to their economic development. There’s Senegal’s “Emerging Senegal” plan, Ethiopia’s “Growth and Transformation plans,” or Morocco’s own “New Development Model,” which embarrassingly still features a typo in the title of its official English government publication.

If you crave more vision, just have a look at Kenya’s “Vision 2030,” or Egypt’s “Egypt Vision 2030,” or perhaps you can find inspiration in Tanzania’s “Vision 2025.” If that is not enough vision for your liking, there is always Rwanda’s “Vision 2050,” or Cameroon’s “Vision 2035.”

What these documents lack in terms of originality in their naming, they all share in ambitious targets and dreams of becoming a thriving modern economy.

Yet nearly all of these documents also recognize a significant issue plaguing this development. Africa’s top resource, its vibrant young and talented population, is stuck tilling the soil to produce meager yields at their family farms. While farming is arguably one of the world’s most noble professions, ideally as a modern country you would like to have as few people as possible doing it, while producing rich yields that support both domestic consumption and exports. 

Having a thriving domestic agricultural sector is a key factor in reaching nearly all of the buzzwords that regularly roll off politicians’ tongues. It is vital to sustainable development, clean energy, technology-driven economies and being a genuinely competitive international player in the coming AI era that is likely to change our labor markets and economies like never before.

Africa’s handicap

One factor that is often left unspoken in these visionary documents, is what can be considered to be Africa’s handicap, the thing that leaves it trailing its Northern and Western neighbors, as well as other developing countries in the East. This handicap is as clear as it is ever-present; African countries face more extreme weather conditions and harsher climates, and climate change is only going to make this worse in decades to come.

Still, harsh climates and extreme weather are issues that modern agriculture has its answers to, mostly in the form of modern farming techniques, water preservation, and fertilizers.

A good example is Australia, which receives the least rainfall of any inhabited continent on the planet. Despite this, and the ever-growing effects of climate change, Australia has spent the last three decades boosting its agricultural productivity and output, through modern farming techniques, technology and fertilizers.

The irony is that much of the minerals feeding Australian soil and boosting local farmers’ yields, comes from Africa. In fact, 83% of Moroccan exports to Australia are classified as “mixed mineral or chemical fertilizers,” followed by its next biggest export of “non-knit women’s suits,” at 1.87%.

These fertilizers are primarily made from Morocco’s vast phosphate reserves. This resource is so vital that when Norway in June 2023 discovered its own large reserves, the EU went out of its way to release a statement hailing it as “great news” for the continent.  And phosphate is not just used for vital fertilizers; it is also a key component in various types of electric cars, batteries and solar panels, all important products for Africa’s envisioned economic boom.

Yet for farmers in many African countries, fertilizers have long been the missing ingredient to take the step toward self-sufficiency that could become the foundation of true sustainable economic growth.

Quality fertilizers are often too expensive for African farmers, reducing agriculture from being an “engine of growth” to becoming a brake on national economic development. 

This has dire effects far beyond agriculture, as low yields and inefficient agriculture does not just hurt farmers and consumers, but also limits the amount of people available to work in every other sector of the economy.

It is important to recognize the wonderful irony that boosting agriculture means fewer people have to work in agriculture. This means that smallholder farmers can send their children to universities, and young Africans can focus their talent on building technology, providing healthcare or services or starting businesses.

Perfect match

Moroccan fertilizers have long fed agriculture from the US to Australia, yet remain inaccessible to many farmers in Africa. This problematic fact is not just a concern to those farmers, but also to Morocco’s largest fertilizer producer: the OCP Group.

Over the past decades the state-owned phosphate company has evolved from a modest mining company to a fertilizer giant that outcompetes most of its international competitors from some of the world’s richest countries.

As OCP Group evolved into a global player in its sector, its vision has also evolved, primarily around its focus on Africa, Morocco’s home continent. Over the past years, Morocco and OCP Group have made fertilizers a key part of diplomacy, trade, and south-south cooperation.

This focus has not just been beautiful words on the company’s “vision and mission” page, but instead has led to a variety of bilateral agreements with other African states. It has resulted in fertilizer plants being erected in Ethiopia, Nigeria and Ghana, with Togo and Senegal as two likely next candidates for such production facilities. It hasn’t just led to a wider availability of quality fertilizers, but also to a richer offering of products tailored to the context of African countries.

To support this, OCP Group and Morocco’s Mohammed VI Polytechnic University (UM6P) are building state-of-the-art digital soil maps in a variety of African countries, including Ethiopia,Senegal, Zambia, Kenya and others. These maps allow scientists to tailor fertilizers to the exact soil types of the receiving countries, which helps boost yields, while limiting the need to overuse fertilizers, which helps perverse the fertility of the soil and limits the cost of fertilizing land.

Fertilizers have even become a tool for emergency aid, which became apparent in 2022, when Morocco gifted 1,200 metric tons of fertilizer to Jamaica amid the island nation’s disastrous local supply crisis.

Mutually beneficial

It is important to recognize that this larger strategy is not a form of charity, and OCP Group is not trying to act like a benevolent patron. Morocco and its OCP Group need Africa as much as the reverse.

Africa currently is home to 60% of the world’s uncultivated arable land, the world’s youngest population, the richest reserves of natural resources, and the most room to develop.

By boosting African nations, OCP Group and Morocco build their own list of clients, closer to home, which means transport can be done more sustainably. It means being a key partner in feeding billions of people with locally-sourced food. It means building positive relations with fellow African countries, and it means being part of the broader economic success of the continental economy, when current treaties like the African Continental Free-Trade Area (AfCFTA) can blossom and become a driving force in a complementary pan-african economic boom.

But the benefits of genuine cooperation on fertilizers and agri-tech go well beyond economics. The results of such cooperation can ensure nations thrive and avoid coups, which in turn can help feed and develop restless remote areas where violent extremism could otherwise rise. In short, societal prosperity brings stability, promotes good governance, and a strong civil society — all crucial needs across the continent.

For Morocco and the wider region, this means using local resources to produce African development, without the need for foreign capital or foreign multinationals to “help” extract a nation’s resources.

Furthermore, when we connect Morocco’s phosphate wealth with Nigeria’s gas reserves, or DR Congo’s vast areas of uncultivated fertile land, the compounding effects of this Africa-oriented approach could help elevate a continent full of young motivated people.

Of all the ambitious national plans and government documents with the word “vision” on their cover, the symbiotic relationship between Morocco’s OCP and the broader African continent represents a potential blueprint for sustainable development. It shows that action speaks louder than words and that trade is not a zero-sum game where one party’s wealth has to come at another’s expense.

This narrative is more than just about fertilizers or agriculture; it’s about rewriting Africa’s story from one of dependence on the outside to one of African interdependence and strength. In this vision, Africa’s potential is fully realized, not just for the continent but as a vital contributor to the global community. The story of Morocco and Africa, therefore, is one of hope, resilience, and the unyielding belief that together, they can rise to meet the challenges of the 21st century and beyond.

But to meet these ambitions, we need a focus on the core issue that handicaps African development. While boosting agriculture might not sound as “sexy” to political leaders as topics such as high-tech manufacturing or AI, recognizing the need to prioritize it paves the way for the continent’s nations to build a new modern economy on a solid foundation.

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This Sudan war is too senseless; time we ended it, By Tee Ngugi

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Why are the Sudanese Armed Forces (SAF) and the paramilitary Rapid Support Forces (RPF) engaged in a vicious struggle? It is not that they have ideological, religious or cultural differences.

Not that people should fight because of these kinds of differences, but we live in a world where social constructions often lead to war and genocide. It is not that either side is fighting to protect democracy. Both sides were instruments of the rapacious dictatorship of Omar el-Bashir, who was overthrown in 2019.

 

Both are linked to the massacres in Darfur during Bashir’s rule that led to his indictment by the International Criminal Court for crimes against humanity. They both stood by as ordinary, unarmed people took to the streets and forced the removal of the Bashir regime.

 

None of these entities now fighting to the last Sudanese citizen has any moral authority or constitutional legitimacy to claim power. They both should have been disbanded or fundamentally reformed after the ouster of Bashir.

 

The SAF and the RSF are fighting to take over power and resources and continue the repression and plunder of the regime they had supported for so long. And, as you can see from news broadcasts, they are both well-versed in violence and plunder.

 

Since the fighting began in 2023, both sides have been accused of massacres that have left more than 30,000 people dead. Their fighting has displaced close to 10 million people. Their scramble for power has created Sudan’s worst hunger crisis in decades. Millions of refugees have fled into Chad, Ethiopia and South Sudan.

 

The three countries are dubious places of refuge. Chad is a poor country because of misrule. It also experiences jihadist violence. Ethiopia is still simmering with tensions after a deadly inter-ethnic war.

 

And South Sudan has never recovered from a deadly ethnic competition for power and resources. African refugees fleeing to countries from which refugees recently fled or continue to flee sums up Africa’s unending crisis of governance.

 

Africa will continue to suffer these kinds of power struggles, state failure and breakdown of constitutional order until we take strengthening and depersonalising our institutions as a life and death issue. These institutions anchor constitutional order and democratic process.

 

Strong independent institutions would ensure the continuity of the constitutional order after the president leaves office. As it is, presidents systematically weaken institutions by putting sycophants and incompetent morons in charge. Thus when he leaves office by way of death, ouster or retirement, there is institutional collapse leading to chaos, power struggles and violence. The African Union pretends crises such as the one in Sudan are unfortunate abnormally. However, they are systemic and predictable. Corrupt dictatorships end in chaos and violence.

 

Tee Ngugi is a Nairobi-based political commentator.

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Air Peace, capitalism and national interest, By Dakuku Peterside

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Nigerian corporate influence and that of the West continue to collide. The rationale is straightforward: whereas corporate activity in Europe and America is part of their larger local and foreign policy engagement, privately owned enterprises in Nigeria or commercial interests are not part of Nigeria’s foreign policy ecosystem, neither is there a strong culture of government support for privately owned enterprises’ expansion locally and internationally.

The relationship between Nigerian businesses and foreign policy is important to the national interest. When backing domestic Nigerian companies to compete on a worldwide scale, the government should see it as a lever to drive foreign policy, and national strategic interest, promote trade, enhance national security considerations, and minimize distortion in the domestic market as the foreign airlines were doing, boost GDP, create employment opportunities, and optimize corporate returns for the firms.

Admitted nations do not always interfere directly in their companies’ business and commercial dealings, and there are always exceptions. I can cite two areas of exception: military sales by companies because of their strategic implications and are, therefore, part of foreign and diplomatic policy and processes. The second is where the products or routes of a company have implications for foreign policy. Air Peace falls into the second category in the Lagos – London route.

Two events demonstrate an emerging trend that, if not checked, will disincentivize Nigerian firms from competing in the global marketplace. There are other notable examples, but I am using these two examples because they are very recent and ongoing, and they are typological representations of the need for Nigerian government backing and support for local companies that are playing in a very competitive international market dominated by big foreign companies whose governments are using all forms of foreign policies and diplomacy to support and sustain.

The first is Air Peace. It is the only Nigerian-owned aviation company playing globally and checkmating the dominance of foreign airlines. The most recent advance is the commencement of flights on the Lagos – London route. In Nigeria, foreign airlines are well-established and accustomed to a lack of rivalry, yet a free-market economy depends on the existence of competition. Nigeria has significantly larger airline profits per passenger than other comparable African nations. Insufficient competition has resulted in high ticket costs and poor service quality. It is precisely this jinx that Air Peace is attempting to break.

On March 30, 2024, Air Peace reciprocated the lopsided Bilateral Air Service Agreement, BASA, between Nigeria and the United Kingdom when the local airline began direct flight operations from Lagos to Gatwick Airport in London. This elicited several reactions from foreign airlines backed by their various sovereigns because of their strategic interest. A critical response is the commencement of a price war. Before the Air Peace entry, the price of international flight tickets on the Lagos-London route had soared to as much as N3.5 million for the  economy ticket. However, after Air Peace introduced a return economy class ticket priced at N1.2 million, foreign carriers like British Airways, Virgin Atlantic, and Qatar Airways reduced their fares significantly to remain competitive.

In a price war, there is little the government can do. In an open-market competitive situation such as this, our government must not act in a manner that suggests it is antagonistic to foreign players and competitors. There must be an appearance of a level playing field. However, government owes Air Peace protection against foreign competitors backed by their home governments. This is in the overall interest of the Nigerian consumer of goods and services. Competition history in the airspace works where the Consumer Protection Authority in the host country is active. This is almost absent in Nigeria and it is a reason why foreign airlines have been arbitrary in pricing their tickets. Nigerian consumers are often at the mercy of these foreign firms who lack any vista of patriotism and are more inclined to protect the national interest of their governments and countries.

It would not be too much to expect Nigerian companies playing globally to benefit from the protection of the Nigerian government to limit influence peddling by foreign-owned companies. The success of Air Peace should enable a more competitive and sustainable market, allowing domestic players to grow their network and propel Nigeria to the forefront of international aviation.

The second is Proforce, a Nigerian-owned military hardware manufacturing firm active in Rwanda, Chad, Mali, Ghana, Niger, Burkina Faso, and South Sudan. Despite the growing capacity of Proforce in military hardware manufacturing, Nigeria entered two lopsided arrangements with two UAE firms to supply military equipment worth billions of dollars , respectively. Both deals are backed by the UAE government but executed by UAE firms.

These deals on a more extensive web are not unconnected with UAE’s national strategic interest. In pursuit of its strategic national interest, India is pushing Indian firms to supply military equipment to Nigeria. The Nigerian defence equipment market has seen weaker indigenous competitors driven out due to the combination of local manufacturers’ lack of competitive capacity and government patronage of Asian, European, and US firms in the defence equipment manufacturing sector. This is a misnomer and needs to be corrected.

Not only should our government be the primary customer of this firm if its products meet international standards, but it should also support and protect it from the harsh competitive realities of a challenging but strategic market directly linked to our national military procurement ecosystem. The ability to produce military hardware locally is significant to our defence strategy.

This firm and similar companies playing in this strategic defence area must be considered strategic and have a considerable place in Nigeria’s foreign policy calculations. Protecting Nigeria’s interests is the primary reason for our engagement in global diplomacy. The government must deliberately balance national interest with capacity and competence in military hardware purchases. It will not be too much to ask these foreign firms to partner with local companies so we can embed the technology transfer advantages.

Our government must create an environment that enables our local companies to compete globally and ply their trades in various countries. It should be part of the government’s overall economic, strategic growth agenda to identify areas or sectors in which Nigerian companies have a competitive advantage, especially in the sub-region and across Africa and support the companies in these sectors to advance and grow to dominate in  the African region with a view to competing globally. Government support in the form of incentives such as competitive grants ,tax credit for consumers ,low-interest capital, patronage, G2G business, operational support, and diplomatic lobbying, amongst others, will alter the competitive landscape. Governments  and key government agencies in the west retain the services of lobbying firms in pursuit of its strategic interest.

Nigerian firms’ competitiveness on a global scale can only be enhanced by the support of the Nigerian government. Foreign policy interests should be a key driver of Nigerian trade agreements. How does the Nigerian government support private companies to grow and compete globally? Is it intentionally mapping out growth areas and creating opportunities for Nigerian firms to maximize their potential? Is the government at the domestic level removing bottlenecks and impediments to private company growth, allowing a level playing field for these companies to compete with international companies?

Why is the government patronising foreign firms against local firms if their products are of similar value? Why are Nigerian consumers left to the hands of international companies in some sectors without the government actively supporting the growth of local firms to compete in those sectors? These questions merit honest answers. Nigerian national interest must be the driving factor for our foreign policies, which must cover the private sector, just as is the case with most developed countries. The new global capitalism is not a product of accident or chance; the government has choreographed and shaped it by using foreign policies to support and protect local firms competing globally. Nigeria must learn to do the same to build a strong economy with more jobs.

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