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US to approve $5 billion investment in Morocco’s Sahara region
The United States is moving forward with a $5 billion investment plan aimed at fostering socio-economic development in Morocco’s southern provinces, located in the disputed Sahara region. The initiative underscores Washington’s ongoing support for Morocco’s territorial integrity and its commitment to inclusive growth in the area.
This marks a significant step in the US-Morocco partnership, building on Washington’s 2020 decision to recognize Morocco’s sovereignty over Sahara. The US Development Finance Corporation (DFC) has already begun collaborating with Moroccan banks and businesses to identify promising projects.
Renewed focus on investment
According to African Intelligence, the Trump administration laid the groundwork for encouraging American companies to invest in Sahara, a move that has gained traction despite limited activity under the Biden administration. The DFC, with approval from Washington, is actively pursuing opportunities in the region alongside Moroccan stakeholders.
The US’ interest in Morocco’s southern provinces aligns with broader diplomatic and economic goals. Former US Ambassador to Morocco David Fischer announced in 2020 plans to open a consulate in Dakhla, aiming to facilitate investments that deliver tangible benefits to local communities.
A cornerstone of Morocco’s vision
King Mohammed VI has long championed the development of Morocco's southern provinces, envisioning the region as a hub for economic progress on both regional and continental levels. Key projects, such as the Dakhla Atlantic Port, reflect Morocco’s ambition to transform the area into a driver of growth.
The US has echoed this commitment, with its ambassador nominee to Morocco, Richard Duke Buchan III, recently reiterating support for Morocco’s Autonomy Plan as the only viable solution to the Sahara dispute. During his Senate hearing on July 30, Buchan emphasized the importance of facilitating a UN-led political process and urged all parties to engage constructively.
Strategic ties and growing cooperation
The $5 billion investment plan highlights the depth of US-Morocco relations, which have grown stronger in recent years. In addition to economic partnerships, the two nations have collaborated on defense agreements and diplomatic initiatives.
Washington’s financial and political backing for Morocco’s development in Sahara reinforces its role as a key ally in the region, further cementing ties between the two countries.
