After two years of strained relations between Paris and Rabat over the Western Sahara issue, the two countries are witnessing a rapprochement that signals new opportunities for French businesses in Morocco.
A French company official operating in Morocco, who requested anonymity, said, “It’s clear that favorable winds are blowing for France again,” citing recent tenders in Morocco won by French companies as evidence.
This new chapter in the trade relations between the two countries opened following an important gesture by French President Emmanuel Macron towards Morocco, as he affirmed his country’s support for Morocco’s autonomy plan for Western Sahara in a message to King Mohammed VI.
Washington, Berlin, and Madrid had previously endorsed the plan proposed by Rabat in 2007, ahead of Paris.
Two days after Macron’s message was officially published, the French engineering firm “Egis,” in partnership with its counterpart “SYSTRA” and the Moroccan company “NOVEC,” won a contract to extend a high-speed rail line between Kenitra and Marrakech.
Some economic stakeholders in Morocco were surprised by this announcement and linked it to France’s new position on the Sahara.
Egis did not respond to requests from AFP for comment.
Mohammed Zidouh, chairman of the Moroccan-French friendship group in the Council of Advisors, told AFP, “There will definitely be development and acceleration of economic cooperation between the two countries, especially in the Sahara.”
The Sahara, with its vast solar and wind energy resources, is considered a strategic area for economic growth in Morocco, which is moving towards renewable energies and hopes to establish a place in the green hydrogen market.
French and other Western companies have started operations in the Sahara, including the French energy group “Engie,” which is currently building a seawater desalination plant in Dakhla alongside Morocco’s “Nareva.”
The construction and infrastructure group Sade-CGTH also won a tender for a water network project in Dakhla.
The rapprochement between Paris and Rabat has been welcomed by French companies in Morocco. Etienne Girault, president of the French Council of Investors in Africa, commented, “For two years, we were careful not to draw attention; it was not in our interest to flaunt our nationality.”
A French business owner, who chose to remain anonymous, said that large Moroccan economic companies “have started knocking on our doors again” to establish partnerships in the kingdom, whereas in recent years, they felt there were too many projects with the French, sensing palpable tension.”
Jean-Charles Damblin, director-general of the French Chamber of Commerce and Industry in Morocco, mentioned, “In terms of public contracts during that period, it was perhaps a bit more complicated.”
However, he clarified, “We did not see a significant slowdown overall” in economic relations as a result of diplomatic tensions in recent years.
He noted the very close relations between France and Morocco, with trade reaching a record level of $14 billion last year.
Certainly, the war in Ukraine led to a sharp increase in imports of French agricultural products.
France is the leading foreign investor in Morocco, with nearly all companies listed on the Paris Bourse’s CAC 40 having branches in the kingdom, which hosts a thousand French companies, notably in vehicle and aircraft assembly.
Morocco is also the leading African investor in France, with its direct investments rising from 372 million euros in 2015 to 1.8 billion euros in 2022.
The diplomatic rapprochement followed tension between the two countries due to France’s desire to maintain a balanced position on the Sahara issue concerning Algeria. This began with reciprocal ministerial visits in recent months, paving the way for a state visit by Macron, which has been postponed repeatedly over the years.
Despite the economic benefits resulting from the rapprochement, the Élysée’s decision was not primarily driven by economic considerations, a source familiar with the matter told AFP, adding, “The decision certainly had economic implications, but it was primarily political.”
This position has generated mixed reactions, as noted by political analyst Khadija Mohsen-Finan.
Mohsen-Finan, a specialist in regional affairs, explained, “From the perspective of international law and the United Nations, the Sahara remains a non-autonomous territory, meaning its sovereignty is unclear, undefined, and unrecognized by the UN.”
She believed that this diplomatic shift provided French companies already present in the Sahara with a political guarantee, in the absence of a “legal guarantee for their presence in the Sahara,” considering that Macron also appeased business leaders who were already established in the region.
However, this does not mean that all companies will rush to establish operations in Morocco. A major French company informed AFP that it chose to forgo setting up a branch in the Sahara for fear of displeasing its shareholders, who are concerned about issues of sovereignty.
