Landmark AFD investment into Southern provinces bolsters Moroccan-French relations

In a visit loaded with symbolic and strategic weight, the CEO of the French Development Agency (AFD), Rémy Rioux, announced plans for €150 million in direct French investments across several sectors in Morocco’s southern provinces.

Speaking from Laayoune’s regional government headquarters and during stops at the city’s port and the African Institute for Research in Sustainable Agriculture, Rioux confirmed that AFD will begin funding a range of development projects in the region. He also revealed plans for a joint initiative with Morocco’s phosphate giant, OCP Group, aimed at decarbonizing phosphate production and expanding those efforts to the southern territories.

The announcement comes amid a flurry of visits by French officials to the Moroccan Sahara, underscoring a shifting momentum in France’s stance toward the region and signaling robust support for Morocco’s development model and its autonomy plan, which continues to garner growing international backing.

Strategic Trust and Economic Signal

Moroccan political and economic analysts hailed the visit as a strong endorsement of Morocco’s regional development agenda. Lahcen Haddad, a strategic affairs expert and member of the editorial board of Harvard Business Review, said the investment is “a clear signal of trust” in Morocco’s inclusive and sustainable development model.

“This dynamic stands in sharp contrast to the dire conditions in Tindouf,” Haddad noted on X (formerly Twitter), referring to the refugee camps in Algeria run by the Polisario Front. “While Algeria perpetuates poverty and isolation, Morocco—supported by allies such as the U.S., Spain, and African and Latin American countries—is offering a vision of prosperity, freedom, and stability.”

Haddad also emphasized that the €150 million announcement reflects “international confidence, especially from strategic partners like France, in Morocco’s long-term development trajectory based on economic growth, democratic participation, and regional integration.”

France’s Subtle Shift on Sovereignty

For Mohamed Atif, professor of international relations at Chouaib Doukkali University, the move signals “a qualitative shift” in France’s approach to the Sahara issue.

Speaking to local media, Atif noted that while AFD’s CEO refrained from explicitly affirming Moroccan sovereignty, the agency’s decision to finance projects in the region is “an implicit recognition of Morocco’s territorial integrity.” He called the visit a “practical shift” that suggests Paris is recalibrating its political alignment with Rabat after years of strained ties.

“Public investment from a French government institution in the Sahara marks a significant acknowledgement of the region’s potential,” Atif added. “It demonstrates growing awareness of the southern provinces as a future hub for energy transition, especially through solar and wind energy projects.”

He also stressed that the French funding will not be limited to infrastructure but will extend to long-term strategic ventures. These initiatives could transform the region into a platform for South-South economic integration and trilateral partnerships with sub-Saharan Africa, reinforcing France’s relevance in Morocco’s Africa-focused diplomacy.

Strengthening Regional Ties

Rioux’s visit included meetings with Abdeslam Bekrate, Wali of Laayoune-Sakia El Hamra, Sidi Hamdi Ould Errachid, regional council president, and Moulay Hamdi Ould Errachid, mayor of Laayoune. The AFD chief expressed gratitude for the warm reception and stressed the importance of engaging with youth and local authorities to tailor future investments.

“The goal is to channel existing infrastructure and local potential into real job opportunities that meet the aspirations of the population, especially young people,” he said.

Rioux’s remarks were interpreted by observers as a strong step toward deeper Franco-Moroccan cooperation at a regional level, potentially signaling a broader political thaw between Paris and Rabat.