Headlines

French development agency to invest in Morocco-ruled Western Sahara

Published by Global Banking & Finance Review

Posted on May 13, 2025

2 min read

· Last updated: January 23, 2026

Add as preferred source on Google
MeridianLink financial software firm announcement of $2 billion acquisition by Centerbridge - Global Banking & Finance Review
Featured image depicting the MeridianLink logo, highlighting the company's acquisition by Centerbridge Partners for $2 billion. This deal signifies a growing trend in private equity buyouts within the finance sector.
Global Banking & Finance Awards 2026 — Call for Entries

French Development Agency Plans €150M Investment in Western Sahara

By Ahmed Eljechtimi

RABAT (Reuters) -The French Development Agency (AFD) said it would invest 150 million euros ($167 million) in Western Sahara in 2025-2026, following Paris' recognition of Morocco's sovereignty over the disputed desert territory.

The long-frozen conflict, dating back to 1975, pits Morocco, which considers the territory as its own, against the Algeria-backed Polisario front, which seeks an independent state called the Sahrawi Republic in Western Sahara.

The investment was announced on Monday following a visit to the Moroccan capital Rabat and to Western Sahara by AFD chief Remy Rioux, who met members of the cabinet and local officials, AFD said in a statement.

The funds will be directed at environmental and water supply projects among other social and economic development programmes, it said.

French President Emmanuel Macron has backed Morocco's sovereignty over the North African territory and supported its autonomy plan as the only solution to the conflict.

He paid a visit to Rabat in October during which deals worth over $10 billion were signed.

France said it will also open a cultural centre and a consular service to process visa applications from the territory.

Relations between France and Algeria worsened after Macron's support for Rabat's position on Western Sahara.

Since 2020, Morocco has won backing from the U.S. and the territory's former colonial power Spain, as well as Israel and more than two dozen African and Arab nations.

The UN Security Council has been calling in recent resolutions on the parties to negotiate a "political" and "mutually acceptable" solution to the conflict.

The Polisario withdrew from a U.N.-brokered truce but the conflict remains of low intensity.

(Reporting by Ahmed EljechtimiEditing by Ros Russell)

Key Takeaways

  • AFD to invest €150 million in Western Sahara by 2026.
  • Investment follows France's recognition of Morocco's sovereignty.
  • Funds to support environmental and water projects.
  • Macron supports Morocco's autonomy plan for the territory.
  • Relations between France and Algeria have worsened.

Frequently Asked Questions

What is the main topic?
The main topic is the French Development Agency's investment in Western Sahara, supporting Morocco's sovereignty.
Why is France investing in Western Sahara?
France is investing to support Morocco's sovereignty and development projects in the region.
What are the implications of this investment?
The investment strengthens Morocco's position and affects France-Algeria relations.

Related Articles

More from Headlines

Explore more articles in the Headlines category