France to invest €150m in Western Sahara « Euro Weekly News

France is putting serious money on the table in one of North Africa’s most sensitive regions. The French Development Agency (AFD) has just announced a €150 million investment plan in Western Sahara, a territory that’s been at the centre of a decades-long dispute between Morocco and the independence-seeking Polisario Front.

Speaking during a visit to Laâyoune, AFD director Rémy Rioux said the agency is now ready to back development and infrastructure projects in Morocco’s southern regions, including the disputed Sahara area.

Why investing in Western Sahara remains politically sensitive

Western Sahara is not your average investment zone. The region, once a Spanish colony, has been contested for nearly 50 years. Morocco controls most of the territory and insists it’s part of the kingdom, but the United Nations still considers it a “non-self-governing territory”, and Algeria-backed Polisario fighters continue to call for independence.

France, which has traditionally walked a fine diplomatic line on the issue, has shifted its position in recent months. In fact, last October, President Emmanuel Macron publicly said France was ready to help develop the region, describing the move as a way to support “sustainable and inclusive growth” for the people who live there.

That shift has helped ease years of quiet tension between Paris and Rabat – but it’s also triggered a sharp reaction from Algeria, whose relationship with France is already on rocky ground.

Green energy projects signal deeper French involvement in Western Sahara

France isn’t just offering warm words. During Macron’s visit to Morocco, big-name companies like Engie and MGH Energy signed deals to launch renewable energy and e-fuel projects in the area – another sign that Paris sees real strategic value in Western Sahara.

The region has sun, wind, and space – a perfect recipe for green energy development. And Morocco, keen to present itself as a regional climate leader, is welcoming the investment.

But these business deals come with baggage. Any foreign involvement in Western Sahara is seen by many as a political endorsement of Morocco’s claim, whether that’s the intention or not.

France’s investment in Western Sahara sparks diplomatic tensions

Algeria hasn’t minced words. The country, which supports the Polisario cause, is furious at what it sees as France siding with Morocco – and that’s further straining an already tense relationship with Paris.

France’s bet on Western Sahara may pay off economically, especially as Europe scrambles for new energy sources. But politically, it’s a risky move. The region remains deeply disputed, and any step – even an investment – is likely to spark more questions than answers.

As the money flows in, the spotlight returns to a part of the world many had stopped watching – and the consequences are just starting to unfold.

Read more news from France