French Companies Lose Ground in Morocco as International Rivals Win Key Contracts

Elimination of the French Alstom from an important call for tenders launched by Morocco for the acquisition of 168 trains, loss by France of its status as the kingdom’s leading wheat supplier in favor of Russia, exclusion of the French KNDS, manufacturer of the famous Caesar cannon, in favor of the Israeli group Elbit Systems for the supply of 36 self-propelled Atmos 2000 artillery pieces, upcoming opening by the Turkish company Baykar of a drone manufacturing plant in the kingdom, construction to the Chinese, award of train contracts to the Spanish and South Koreans... A few months after France’s recognition of the Moroccanness of the Sahara, French companies that were expecting to win major contracts in Morocco are not reaping big economic dividends. France is facing fierce competition. Morocco’s economic diplomacy is largely benefiting Israel, China, China and South Korea, and not Paris.

Has Algerian President Abdelmadjid Tebboune been right to warn French President Emmanuel Macron that he will gain nothing from the recognition of the Moroccanness of Western Sahara? "You are making a serious mistake! You will gain nothing and you will lose us," he told his French counterpart in an interview with the French newspaper L’Opinion on the sidelines of the G7 summit last June in Bari, Italy. France’s change of position has undermined relations between Paris and Algiers.

However, the annual report of the French customs on the state of France’s foreign trade for 2024 indicates that Paris’ recognition of the Moroccanness of the Sahara contributes to giving a boost to trade between Morocco and France. The report reveals an "evolution of exports to Morocco of 13.1%, against a slight stability of imports, which have decreased by 0.4%, thus remaining at their usual level". The value of French exports to Morocco reached 7.4 billion euros in 2024, compared to 6.6 billion euros in 2023, while imports from Morocco remained at the same level as in 2023, i.e. 7.4 billion euros. Result: foreign trade (trade balance surplus) between Morocco and France improved by 0.9% in 2024, after recording a deficit of 0.8% in 2023.