France announces new investments in Western Sahara

On May 11 this year, the French Development Agency (FDA) announced its intention to make major investments worth 150 million euros in the regions of Western Sahara.

,,Our group is interested in attracting new funds for development”, said Remy Rioux, FDA’s director general, noting that he was ,,very impressed” by the investments and the quality of infrastructure that Western Sahara has recently seen, with new jobs being created to meet the expectations of its inhabitants.

The territory is not a typical investment area. It was once a Spanish colony and has been disputed for almost 50 years. Morocco controls most of Western Sahara and insists that it is part of the kingdom, but the UN still considers it a ,,non-self-governing region.”

France announced its recognition of Rabat’s sovereignty over the disputed territory in July 2024, in a letter that French President Emmanuel Macron addressed to Moroccan King Mohammed VI.

The message was followed by a state visit by Macron three months later, during which he publicly announced Paris’s decision to the Moroccan parliament.

During the trip, major French companies such as Engie and MGH Energy signed agreements to launch renewable energy and electric fuel projects in Western Sahara – a sign that Paris wants to present itself as a regional leader in promoting a green economy.

These decisions by France have also created strained bilateral relations with Algeria, which supports the Polisario Front, a movement in Western Sahara that is fighting to remove the Moroccan occupation in order for the region to obtain the right to self-determination.

The territory therefore remains deeply disputed, and any action – even an investment package – risks causing more political instability than solutions.