Trump Revives $5 Billion in US Investments in Moroccan Sahara Amid Growing International Support for Autonomy Plan

Rabat – FesNews:
In a move reflecting a strategic shift in US policy toward Morocco’s Sahara, the Trump administration announced its intent to unfreeze $5 billion in American investments frozen under Joe Biden, activating the tripartite Morocco-US-Israel agreement signed in late 2020. This decision aims to strengthen the American economic presence in the southern provinces after years of stagnation under the previous Democratic administration.

Historically, the 2020 US recognition of Moroccan sovereignty over the Sahara marked a pivotal turning point, enabling unprecedented economic cooperation. International backing for Morocco’s autonomy proposal as a realistic solution to the conflict has grown, with the United Nations, European Union, and leading Arab nations endorsing the Moroccan initiative, deeming it a “serious and responsible basis” for settlement.

Implementation of investments will be entrusted to the US Development Finance Corporation (DFC) following security clearance from the National Security Agency (NSA). The corporation has already initiated meetings with Moroccan banks and contractors to identify promising projects in Dakhla and Laâyoune regions, preparing for fund disbursement.

Despite funding freezes under Biden, joint initiatives persisted: the “DakhlaConnect.com” platform launched with support from the US Middle East Partnership Initiative (MEPI), while high-level American delegations visited Dakhla and Laâyoune in February 2022 and October 2024 to inspect youth training programs and digital platform development. Major corporations like “GE Vernova” (a General Electric subsidiary) continued implementing Sahara-based projects in partnership with Moroccan institutions.

This decision follows escalating parliamentary pressures in Washington to block initiatives reinforcing recognition of Moroccan sovereignty. The Trump administration overcame these reservations, particularly after the US State Department (led by Democrat Antony Blinken) approved $500,000 in development funding for Dakhla and Laâyoune projects in April 2024. The 2021 visit by David Schenker (former Assistant Secretary of State) to the future US Consulate site in Dakhla further underscores Washington’s diplomatic commitment.

Investments are expected to focus on renewable energy and digital infrastructure sectors, enhancing the Sahara’s competitiveness as an economic hub. The funding release reaffirms the consistency of the US position and sets a precedent that may encourage other nations to strengthen regional investments.

Growing international support manifests clearly: the UN called for “activating the political solution” based on Morocco’s proposal; the EU deemed it a “realistic foundation” for negotiations; the Arab League endorsed Morocco’s “sustainable development efforts”; and the US reaffirmed support for the “serious and responsible proposal.”

This development emerges amid increasing signs of international acceptance of the autonomy plan as a consensus solution, particularly after its inclusion in UN reports as a “negotiable option” for conflict resolution. The paramount challenge remains transforming political and financial commitments into tangible projects that enhance the economic and social integration of Sahara provinces into Morocco’s national fabric.

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