Market Trends of Africa Potash Fertilizer Industry
This section covers the major market trends shaping the Africa Potash Fertilizer Market according to our research experts:
Increasing Demand For Corn Cultivation
Agriculture plays a crucial role in the economic development of Africa. For instance, the area under farming grew by 2.8% from 310.5 million hectares in 2016 to 319.2 million hectares in 2018. Moreover, of the overall crop production, relatively higher demand for chloride is observed from specific crops, such as corn, which is accelerating the demand for potassic fertilizers in the region. The increasing demand for corn production in the region, coupled with the stagnated area under corn production, has significantly uplifted the inclusion of potassic fertilizers in cereal production, especially in the corn segment. For instance, over the period of 2016-18, the corn production in the region marked a negative trend of 0.8%, where the corn production in the region significantly rose by 8.3% over the same period. This significant uplift in the corn production was particularly attributed to the rising inclusion of potassic fertilizers in the region, as corn has high potassium requirements.
Increase in Investments in Africa Potash Sector
The current inclusion of potassic fertilizers across the African region is particularly hampered by the natural resource restrictions in the region. However, unlike other African countries, Morocco, in recent years had become a hotspot for the potassic fertilizer market, accompanied by the ongoing investments in the country's fertilizer sector. As of 2016, Moroccan OCP Group (phosphate company) signed an agreement with Nigeria's Sovereign Investment Authority, to build an NPK fertilizer plant in Ethiopia, which is likely to become operational during 2023-2024. The plant would be able to supply nearly 2.5 million metric tons of NPK fertilizer blends annually. Thus, these ongoing investments in the fertilizer sector in the region have become a part of the strategy to boost the fertilizer demand and supply, which is likely to accelerate the sales of potassic fertilizers over the forecast period.
