Pan African News Blog

As the Trump administration continues to shape U.S. foreign policy in its final months, one of its most consequential moves—the recognition of Moroccan sovereignty over Western Sahara—is paving the way for American businesses to invest in the disputed territory. This decision, announced in December 2020 as part of a broader deal that included Morocco normalizing relations with Israel, has significant implications for trade, diplomacy, and regional stability in North Africa.

Trump’s Historic Recognition

In a landmark shift, President Donald Trump formally recognized Morocco’s claim over Western Sahara, a region that has been contested since 1975 when Spain withdrew and Morocco annexed it. The Polisario Front, backed by Algeria, has long fought for independence, with the United Nations labeling Western Sahara as a “non-self-governing territory.” Trump’s decision reversed decades of U.S. neutrality and aligned Washington firmly with Rabat, a long-standing ally.

King Mohammed VI’s Strategic Moves

King Mohammed VI of Morocco has leveraged this diplomatic victory to attract foreign investment, particularly from the U.S. The Moroccan government has pledged infrastructure development, energy projects, and economic incentives in Western Sahara to solidify its control. Key sectors opening for American businesses include:

• Phosphate mining (Western Sahara holds some of the world’s largest reserves)
• Renewable energy (wind and solar projects in the desert region)
• Fisheries and agriculture (coastal resources and fertile land)
• Trade and logistics (positioning the territory as a gateway to Africa)

Financial Commitments So Far

Since Trump’s recognition, several financial engagements have been announced:

• A $1 billion loan from the U.S. International Development Finance Corporation (DFC) for infrastructure projects in Morocco, including Western Sahara.
• Corporate interest from U.S. firms in energy and mining, though many remain cautious due to legal and ethical concerns over sovereignty disputes.
• Potential free trade zone expansions, building on the existing U.S.-Morocco Free Trade Agreement (FTA).

Controversy and Opposition

Critics argue that Trump’s policy undermines the UN-led peace process and the right to self-determination for the Sahrawi people. The African Union (AU) still recognizes the Sahrawi Arab Democratic Republic (SADR), and Algeria continues to support the Polisario Front. Legal challenges may arise as international law remains ambiguous on resource exploitation in occupied territories.