Written by The Banking Post
Bangladesh is emerging as a priority country for France under its Indo-Pacific development strategy, with Paris pledging deeper cooperation in areas such as energy transition, climate change, and sustainable development goals.
French officials acknowledged, however, that global financing trends—particularly the United States’ retreat from aid and shifting tariff policies—could reshape the future of development assistance. Much depends on the outcome of the upcoming G7 summit, where Washington plays a pivotal role in shaping investment flows.
“Our development policy is undergoing quite a lot of changes due to several factors, including US tariff and aid policy,” a French foreign ministry official told Asian journalists during a press tour in Paris.
Rising French Engagement in Bangladesh
France has stepped up its role in Bangladesh since 2012, with support in water, health, and green financing projects. Funding has surged from €40 million in 2012 to over €1.2 billion by 2023. One of the flagship undertakings is a €315 million multi-donor project to supply safe drinking water to Dhaka residents.
Bangladesh’s growing population, climate vulnerability, and economic transition have made it an important partner, according to the Agence Française de Développement (AFD) Group, which channels funds through loans, grants, and technical expertise.
“Like India, Bangladesh is in the footprint of the AFD Group,” said Philippe Orliange, Executive Director of AFD. He noted that while most financing comes from international markets and multilateral institutions, Bangladesh remains a priority due to its demographic and development profile.
Private Sector Opportunities
Proparco, AFD’s private-sector arm, also sees Bangladesh as a key market. Deputy CEO Djalal Khimdjee said the country’s population size makes it attractive for private investment in development. “We want to find ways to associate with partner countries,” he said, pointing to success stories in the textile sector where better healthcare access has improved female worker attendance.
Expertise France, another AFD entity, is exploring opportunities to bring French technology and innovation into Bangladesh’s development projects.
Regional and Global Context
France’s Indo-Pacific engagement is driven by the region’s weight—home to 54% of the world’s population, 50% of carbon emissions, and 40% of global GDP. India, Vietnam, and Cambodia remain top French priorities, but Bangladesh is steadily moving up the list.
Despite France’s domestic economic pressures—including a national debt of €3.3 trillion—officials assured that Paris will continue supporting climate action and sustainable development in line with the Paris Agreement.
Still, they cautioned that global funding constraints could limit project numbers unless the G7 agrees on stronger collective commitments. “There is scope for joining forces within Europe and better use of financial institutions, including those of China, to work on,” an AFD official said.
