(Ecofin Agency) - Ethiopian State-owned group the Ethiopian Agricultural Business Corporation (EABC) bought 936,430 tons of fertilizers for 6.4 billion birr ($286 million), Addisfortune revealed.

70% of the fertilizer comes from the Office Chérifien des Phosphates (OCP) and will be sent to Ethiopia through the ports of Djibouti and Sudan. “The importation of the fertilizers via Port Sudan will reduce the transportation cost and time needed to reach the northern part of the country,” said Kefyalew Berhanu, CEO of EABC.

“Avoiding supply chains and purchasing the fertilizer directly from the producer it has enabled the company to reduce its cost,” Kefyalew said. “The big savings in purchase and transportation cost is expected to reduce the price of fertilizer for the farmer by 200-350 birr per quintal,” he added.

EABC was established in 2015 by the Ethiopian government. It results from a merger of five companies operating in the agricultural seedlings, mechanization, processing and fertilizers sectors.