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Western Sahara Crisis Threatens North African Security and EU Business Interests

A longstanding conflict over Western Sahara’s independence has reignited, threatening to disrupt a three-decade period of relative peace and jeopardize the security of North Africa. The crisis also poses significant risks to European businesses operating in the region.

Background

The Polisario Front, which seeks independence for Western Sahara from Morocco, has agreed to organize a referendum with the newly created MINURSO (United Nations Mission for the Referendum in Western Sahara) since 1991. However, negotiations have failed to reach a compromise, maintaining the status quo.

Business Risks Soar

Companies operating in Western Sahara or trading its resources face increased supply-chain, compliance, security, and business risks due to the conflict. Legal and trade implications include:

  • Detention of vessels carrying phosphate rock from Western Sahara
  • Lawsuits against agricultural and airline companies operating in the Sahara or importing Western Sahara’s products into Europe
  • Accusations of colonization crimes against six major French companies

Operational risks include increased hostilities, uncertainties about doing business in Western Sahara, and potential sanctions.

Sanctions Risk and Uncertainty

The moral uncertainty surrounding trade agreements in the region has led to calls for sanctions on Morocco for violating human rights in Western Sahara. Recent examples include:

  • 53 Norwegian NGOs urging their government to act at the UN Security Council
  • The Pan African Parliament imposing sanctions on Morocco in 2011

Companies Need Reliable Information

To navigate these complex threats, companies must design business continuity plans and emergency protocols, monitor developments through media and corporate communications, and conduct enhanced due diligence. Adverse media screening (AMS) services and due diligence reports can help mitigate risks.

Dow Jones provides reliable information in over 26 languages, including risk & compliance databases, due diligence reports, and advanced adverse media screening.

Author’s Note

This article is written by Davide Contini, a researcher for Dow Jones Risk & Compliance’s Adverse Media Entities unit. He has extensive knowledge of North and Francophone Africa and serves as a board member of the Brussels-based NGO Western Sahara Resource Watch.