French Finance Minister Bruno Le Maire announced on Friday that France is ready to participate in funding a three-gigawatt power line connecting the Moroccan city of Casablanca to the town of Dakhla in Western Sahara.
Speaking at a Moroccan-French business forum in Rabat, Le Maire said, “I assure you that we are ready to participate in funding this project.” In February, French Foreign Minister Stéphane Séjourné stated that Paris supports Morocco’s investments in Western Sahara and reaffirmed support for Rabat’s plan to grant the region autonomy, indicating a warming of relations between the two countries after a period of diplomatic stagnation.
Morocco wants France to recognize its full sovereignty over Western Sahara, following the example of the United States and many Arab and African countries.
Le Maire also mentioned that France intends to cooperate with Morocco in developing projects for solar energy, wind power, and green hydrogen, in addition to nuclear energy. Furthermore, he added that the French Development Agency will provide a loan of 350 million euros to help the Office Chérifien des Phosphates in its green transformation plan.
France is the largest foreign investor in Morocco, with total investments amounting to 8.2 billion euros ($8.75 billion) by 2022. There are industrial facilities in Morocco for prominent French companies such as Renault and Safran.
Morocco has focused on improving its investment climate through various measures. These include the Industrial Acceleration Plan aimed at modernizing its economy to attract more foreign direct investments. The plan emphasizes integrating small and medium enterprises and enhancing industry’s role in technological transformations. The Moroccan government has also implemented reforms to simplify business registrations and provide incentives like tax exemptions to encourage foreign investment.
The rebound of foreign investments in Morocco to above pre-pandemic levels indicates a robust interest from international investors, highlighting the country’s strategic location, political stability, and favorable legal frameworks for investment.
Additionally, French investments are not just limited to traditional sectors but also extend to innovative areas such as green hydrogen. Recent partnerships, like the joint venture between the Belgian company John Cockerill and a Moroccan company to invest in green hydrogen, underscore the dynamic nature of ongoing investments. These ventures aim to develop essential infrastructure for the green hydrogen industry in Morocco, reflecting a broader trend of sustainable and renewable energy projects.
