The primary port operator in Morocco, Marsa Maroc, is set to make a significant investment in the petroleum port in Djibouti, where Ethiopia has expressed interest in acquiring a stake.
Marsa Maroc is expanding its presence on the African continent by establishing two new subsidiaries in Djibouti and Benin, according to various sources.
As part of a decision by the Moroccan government on January 6, Marsa Maroc plans to invest an undisclosed amount in Damerjog Oil FZE, a company responsible for constructing an oil and gas terminal in Damerjog.
To oversee this initiative, Marsa Maroc has established a subsidiary called Marsa Maroc International Logistics, which will manage a separate organization known as Marsa Djibouti.
This project aligns with Marsa Maroc’s objective of strengthening its role in the logistics chains of East Africa.
Reports indicate that the Marsa Maroc group is exploring new expansion opportunities, particularly through public-private partnerships for managing ports in other African countries.
Marsa Maroc International Logistics, which will supervise the company’s international investment projects, has a capital of USD 30 million.
In East Africa, Marsa Djibouti is expected to acquire a stake in Damerjog Oil Jetty FZE, which is responsible for developing and managing a petroleum terminal in Djibouti’s free zone.
The strategic location aims to capitalize on significant logistics flows related to the storage and reloading of petroleum products, especially targeting the Ethiopian and Djiboutian markets.
Ethiopia currently relies on the Damerjog port, a large construction complex located on the southern outskirts of Djibouti along the Gulf of Aden, to import petroleum products. These products are presently imported through Horizon, which is not fully equipped to serve the needs of the world’s most populous landlocked country.
It was noted that during a visit approximately five months ago, a team from the Ethiopian Petroleum Supply Enterprise (EPSE) requested alternative discharge ships for oil imports from Djibouti authorities, as the Horizon Djibouti Terminal was partially closed for repairs at that time.
The UAE’s Horizon Djibouti Terminal, opened in 2005 with an annual capacity of 4.5 million tons, is increasingly unable to meet Ethiopia’s growing demand for petroleum products.
In late 2017, transport ministers from both countries engaged in extensive discussions about constructing a new oil terminal to address Ethiopia’s rising needs for key commodity imports.
Additionally, Ethiopia has shown significant interest in acquiring a share of the oil port facility, based on negotiations held in previous years that culminated in a Memorandum of Understanding (MoU).
The recently established sovereign wealth fund (SWF), Ethiopian Investment Holdings, has been involved in negotiations with Djibouti authorities to secure a thirty percent stake in Damerjog Liquid Bulk Port, a state-of-the-art facility capable of accommodating the latest generation of oil tankers.
While no further progress has been reported, it was stated in late 2022 that the investment holding would secure the stake through EPSE, one of the 27 large public firms owned by the SWF.
Damerjog Liquid Bulk Port is projected to handle 13 million tons as part of the USD 4 billion Djibouti Damerjog Industrial Park.
Marsa Maroc’s financial performance reflects a strong market position, with profits reaching USD 85.2 million in the previous year, marking a 5% annual increase.
To support its expansion, Marsa Maroc recently secured USD 69 million in funding from the European Bank for Reconstruction and Development to enhance its terminal capacity.
The port operator, which is 25% state-owned and has Tanger Med Port as a 35% shareholder, continues to demonstrate its commitment to expanding its presence in Africa.
