The European Investment Bank (EIB) has signed in Dakar an agreement with Industries Chimiques du Sénégal (ICS) aimed at safeguarding and developing the activity of Senegal's largest industrial complex.
“This is an important agreement for Industries Chimiques du Sénégal”, said Isabelle Van Grunderbeeck, the EIB's regional representative for West Africa, at the signing ceremony. This agreement will help develop the group’s business in Senegal and West Africa and will have a real impact on employment locally.”
This signature, which brings together all of ICS's lenders, marks the second phase of the company's debt restructuring, the first phase having been concluded on 2 August 2016 with the signature in Paris of debt restructuring agreements with Agence française de développement (AFD), West African Development Bank (BOAD) and the EIB.
ICS, which employs over 1 600 people locally, produces:
- phosphate, from the TAÏBA mine (around 100 km from DAKAR);
- phosphoric acid (P2O5), in two adjacent plants located in DAROU close to the mine; and
- fertiliser (DAP, NPK, SSP/TPS), in a plant located in MBAO (18 km from DAKAR).
ICS's activity is the result of a strategic partnership between Senegal and India (both shareholders in ICS), in particular via Indian Farmers Fertiliser Cooperative Limited (IFFCO), the world's biggest fertiliser cooperative, which has entered into a long-term contract to purchase ICS's P2O5 production. India is the world's leading consumer of phosphoric acid and some experts predict that the country’s requirements will increase by 5% a year between now and 2020.
In addition to the expertise and funds already committed by its new majority shareholder (Indorama Corporation), the restructuring should help ICS make the necessary investments to revamp and improve its existing facilities, ultimately with the aim of making ICS the leading fertiliser producer on the West African market.