French Development Agency Plans €150 Million Investment in Western Sahara

The French Development Agency (AFD) announced a €150 million ($167 million) investment plan for Western Sahara in 2025-2026, following France's recognition of Morocco's sovereignty over the disputed territory. The funds will support environmental, water supply, and socio-economic development projects, reflecting France's clear backing of Morocco's autonomy plan as the solution to the decades-long conflict with the Algeria-backed Polisario Front. This move aligns with broader diplomatic support Morocco has received since 2020 from the U.S., Spain, Israel, and several African and Arab nations. French President Emmanuel Macron's visit to Rabat in 2024 reinforced this partnership, leading to over $10 billion in signed deals and marking a shift in France's traditionally cautious stance. However, France's support has strained relations with Algeria, which opposes Morocco's sovereignty claims. The region's rich potential for renewable energy development also underpins the strategic importance of France's investments in Western Sahara.