Exploitation of resources in the occupied territory
The occupied part of Western Sahara is rich in resources and opportunities for economic activities. However, in order to use resources in a non-self-governing territory such as Western Sahara, the population concerned must first give its consent. The Sahrawis, represented by their internationally recognized agency Frente Polisario, have not given this consent. Swiss companies are also involved.
While the Sahrawis in the refugee camps depend on international aid supplies, which are dwindling, international companies and the Moroccan state profit from the occupation. The coastal strip under Moroccan occupation is rich in resources. Annual revenues from phosphate mining alone amounted to $90 million in 2019, while Algeria had $37 million available from the UN Refugee Agency (UNHCR). Sahrawi refugee camps in western Algeria also depend on this drip. Phosphate is used to produce fertilizer, an important product in agriculture worldwide. In addition, the sea off the coast of Western Sahara is rich in fish. Foreign companies are also increasingly involved in infrastructure projects. This includes the Swiss company Holcim, whose subsidiary LafargeHolcim Maroc operates a cement factory near the town of El Aaiun. Holcim is thus literally cementing the occupation. Swiss companies are also repeatedly involved in transporting fish or phosphate from the occupied territory or supplying components for energy projects. So too ABBwhich sold 80 percent of the affected sector to Hitachi in 2019. In addition Volg still tomatoes from the occupied Western Sahara.
breach of international law
The transactions between Morocco and foreign companies contradict international law. According to the UN, Western Sahara is a non-self-governing territory, and Switzerland also follows this definition. In 2002, the UN legal advisor Hans Corell examined the requirements for legally extracting resources in such a territory. He came to the conclusion: Resources in a non-self-governing area may not be used against the wishes and interests of the affected people.
Against the will of the Saharauis
Time and again, the Sahrawis speak out vehemently against the economic activities of foreign companies in Western Sahara. They also defend themselves legally and are repeatedly proven right. In 2021, the European Court of Justice handed down the last of five very similar rulings. The court declared the fisheries and free trade agreement between the EU and Morocco invalid because it included Western Sahara without a legal basis. In order to conclude such agreements, the Sahrawi people, represented by the Frente Polisario, must give their consent.
Economy and politics lag behind jurisdiction
Despite this clear legal situation, companies make lucrative business deals with Morocco and thus contribute to maintaining the occupation situation, which is also accompanied by serious human rights violations. In addition to the resources of phosphate, oil, fish, agricultural products, salt and sand shipped to the Canary Islands, it is large infrastructure projects in the occupied territory that are the subject of discussion. By awarding these lucrative deals to foreign companies, Morocco secures the support of the business community and pro-business politicians.
Argument of local economic development
Companies repeatedly argue that the local population in Western Sahara benefits from economic activities. Rather, however, it is the case that settlement policy is pursued with the promotion of the "southern provinces", as Morocco calls the Western Sahara. International law also does not refer to the "local population", but to the Sahrawi people, who have a right to self-determination and use of their resources. Since 1991, the UN has been trying to implement a referendum agreed between the parties to the conflict.
Against the will of the Saharauis
Neither is the case with Western Sahara. Sahrawis in the occupied territory are protesting against their socio-economic marginalisation and none of the income generated by Morocco goes to the Sahrawi refugee camps in Algeria. Sahrawis are always vehemently opposed to the economic activities of foreign companies in Western Sahara. They also defend themselves legally against it and are repeatedly proven right. In July 2018, for example, the European Court of Justice made the third ruling on economic agreements between Morocco and the EU and came to the same conclusion once again: Morocco and Western Sahara are different territories, and agreements on the territory of Western Sahara must be negotiated with the Sahrauis and their internationally recognised representation, the Frente Polisario.
Economy and politics lag behind jurisdiction
Despite this clear legal situation, companies are making lucrative business deals with Morocco, thereby helping to maintain the occupation situation, which is also accompanied by serious human rights violations. In addition to the resources of phosphate, oil, fish, agricultural products, salt and sand shipped to the Canary Islands, there are large infrastructure projects in the occupied territory that are worth talking about. By outsourcing these lucrative businesses to foreign companies, Morocco secures the support of the economy and business-friendly policies.
Argument of local economic development
Companies repeatedly argue that the local population in Western Sahara benefits from economic activities. Rather, however, it is the case that settlement policy is pursued with the promotion of the "southern provinces", as Morocco calls the Western Sahara. International law also does not refer to the "local population", but to the Sahrawi people, who have a right to self-determination and use of their resources. Since 1991, the UN has been trying to implement a referendum agreed between the parties to the conflict.
