U.S. to support business investment in Western Sahara

The Trump administration has announced it will begin supporting U.S. companies seeking to invest in Western Sahara, fulfilling a pledge made five years ago when Washington first recognized Morocco’s sovereignty over the disputed territory, Jeune Afrique reported Monday.

Deputy Secretary of State Christopher Landau confirmed the policy shift on September 25 after meeting Moroccan Foreign Minister Nasser Bourita in New York on the sidelines of the UN General Assembly. 

He said U.S. development agencies, including the DFC and the Export-Import Bank, would now provide loans and risk guarantees for American firms operating “throughout Morocco, including Western Sahara.”

Trump’s special adviser Massad Boulos reinforced the message, insisting that Washington would “fully support” financing U.S. projects in the region, from infrastructure to renewable energy.

The move comes amid Morocco’s $1.2 billion plan to transform Dakhla into a gateway to West Africa and multi-billion-dollar projects in green hydrogen and fertilizer production, involving U.S. company Ortus Power Resources alongside European partners.

Critics such as Western Sahara Resource Watch argue the policy lacks legal basis, as Morocco has no recognized sovereignty over the territory under international law. The Sahrawi Arab Democratic Republic (SADR), based in Algeria, continues to call for an independence referendum, a demand Rabat rejects.

Former U.S. Ambassador to Morocco Puneet Talwar said the change puts U.S. businesses on equal footing with European and Chinese competitors, adding that investments could “benefit Sahrawis” if paired with a broader political solution.

The recognition of Morocco’s sovereignty over Western Sahara in 2020 was one of Donald Trump’s most controversial foreign policy moves, tied to Rabat’s normalization with Israel under the Abraham Accords. While the Biden administration did not reverse the decision, it left the policy largely dormant—until now.