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    Dakhla – A New Gateway for Trade in Western Sahara

    May 29, 20244 Mins Read
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    Dakhla
    A render of Dakhla Atlantic Port.
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    Dakhla in Western Sahara is transforming into a major trade hub with the new Dakhla Atlantic Port, set to boost Morocco’s economy and connect Africa to global markets by 2028.

    Dakhla, a small yet strategically located city in Western Sahara, is on the brink of a major transformation thanks to the construction of the Dakhla Atlantic Port. Known for its consistent winds and popularity among kitesurfing enthusiasts, Dakhla is set to become a significant trade hub with the completion of its new port by 2028. This USD 1.2 billion megaproject is expected to reshape the region’s economic landscape, connecting Africa to the global market.

    The Dakhla Atlantic Port Project

    The Dakhla Atlantic Port (site) project spans 1,650 hectares and includes the construction of a trade port with an oil terminal, a fishing port, and a shipyard. A bridge will link the port to the mainland, and a 7-kilometer road will connect it to a national highway stretching from Tangier to the Mauritanian border.

    Nisrine Iouzzi, the director of construction for Dakhla Atlantic Port, said to CNN, “We’re constructing an ecosystem.” Once operational, she expects the port to handle 35 million tons of goods a year. “The geographic location is key (to) the success of the port,” Iouzzi says, claiming that the port has attracted investment from countries including the UAE.

    Gateway to Africa

    The Dakhla port is a critical component of Morocco’s national port strategy, which aims to modernize and strengthen port infrastructure by 2030. Ports in Casablanca, Tanger-Med, and Agadir have already seen significant upgrades, but Dakhla’s unique location positions it as a key player in opening up trade routes to other parts of the African continent.

    “We strongly believe that with this infrastructure – port infrastructure, road infrastructure, renewable energy – we will be very attractive for investors that aim to get to one of the fastest growing markets, which is the West African market,” says Mounir Houari, general manager of Dakhla’s Regional Investment Center. The port’s infrastructure, combined with renewable energy initiatives and road networks, is designed to appeal to these investors.

    Boosting African Trade and Industry

    The establishment of the Dakhla port aligns with Africa’s continental free trade agreement, which seeks to create a single market for goods and services. “Less than 5% of African natural resources are processed in Africa because there is no industrial infrastructure and exporting infrastructure,” says Houari. The Dakhla port “will encourage many Africans to start processing natural resources in Africa, allowing African countries to create more jobs to improve their skills and know-how and strengthen their own industries,” he believes.

    Landlocked countries in the Sahel region, such as Mali, Chad, Niger, and Burkina Faso, stand to benefit significantly from access to Morocco’s road and port infrastructure, facilitating their entry into the Atlantic maritime trade.

    Challenges and Future Prospects

    While the development of the Dakhla Atlantic Port port holds significant promise, the region’s history of unrest poses challenges. Turloch Mooney, head of port intelligence and analytics at S&P Global Market Intelligence, points out that local disputes can complicate the development of port infrastructure and logistics, saying, “It is very positive to see modern port and trade infrastructure being developed in the Western Sahara where there is potential to support a large hinterland in West Africa and the Sahel. Quality port infrastructure and efficient port operations is part of the package of assurance for foreign direct investment and has been a key factor in the successful growth strategies of many developing countries.”

    The Dakhla Atlantic Port project is a beacon of hope for enhancing trade and economic growth in Western Sahara and beyond.

    Read more about regional trade, here.

    Dakhla Dakhla Atlantic Port morocco
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