Trump administration authorizes American companies to invest in Sahara

Saturday 02 August 2025 - 11:00

Under the renewed leadership of President Donald Trump, the United States is preparing to unlock federal support for American companies looking to invest in Sahara — a region long contested and previously off-limits for U.S.-backed economic ventures under President Joe Biden.

According to a report by Africa Intelligence published on July 31, 2025, the U.S. Development Finance Corporation (DFC) is now ready to fund American-led projects in the territory. This decision follows a green light from the National Security Agency (NSA), which assessed that the security risks posed by threats from the Polisario Front do not outweigh the economic potential of the region.

Trump’s new move revives a decision he made during his previous term in 2020, when the U.S. officially recognized Morocco’s sovereignty over Sahara. This paved the way for economic cooperation, including a $5 billion investment plan in Morocco and North Africa and a visit by a DFC delegation to Dakhla just weeks before Biden assumed office in 2021.

One of the flagship initiatives included the launch of the "Dakhlaconnect.com" platform, aimed at promoting local investment. The platform, funded by the U.S. through the Middle East Partnership Initiative (MEPI), was part of the broader plan that also included the planned opening of an American consulate in Dakhla.

However, under President Biden, these efforts were effectively put on hold due to strong opposition from U.S. lawmakers and a cautious stance on affirming Morocco’s claim to the region. Nevertheless, the DFC continued discreet dialogues with Moroccan authorities, hinting at a potential shift in policy.

With Trump’s return to power, these limitations are being lifted. The U.S. government appears poised to directly support economic projects in Sahara, potentially signaling a renewed push to solidify political recognition through financial engagement.

American corporations such as GE Vernova, a subsidiary of General Electric, are already operating in the area, partnering with Moroccan public enterprises on infrastructure projects.