France and Morocco Cement Strategic Partnership Despite Pegasus Spyware Scandal

Africa · Northern

Key Facts

—The Agreements. On 15–16 July 2026, France and Morocco signed around 14 cooperation agreements covering energy, transport, water, migration, security and defence.

—The Treaty. Both nations are drafting an unprecedented friendship treaty, the first France has signed with a non-European country, designed to structure relations for decades.

—The Spyware Context. Fresh Pegasus allegations surfaced during the visit, yet Paris has chosen to prioritise strategic and economic interests over the political cost of digital espionage.

—Economic Stakes. France holds 30.8% of Morocco’s FDI stock, with over 950 French subsidiaries supporting more than 150,000 jobs, making disengagement economically unthinkable.

—Great-Power Calculus. The partnership counters China’s Belt and Road influence and Spain’s deepening ties, while positioning Morocco as Europe’s clean-energy and near-shoring hub.

The France-Morocco strategic partnership has entered a new phase with 14 cooperation agreements and a draft friendship treaty, as both governments deliberately subordinate unresolved Pegasus spyware allegations to deeper economic integration and regional power projection.

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What Was Signed in Rabat

On 15–16 July 2026, French Prime Minister Sébastien Lecornu made his first foreign visit in office to Rabat for the 15th Morocco–France High-Level Meeting. Lecornu and Moroccan Head of Government Aziz Akhannouch signed around 14 cooperation agreements spanning economy, energy, transport, water, migration, security and defence, formally declaring an “enhanced exceptional partnership.”

The package includes French Development Agency financing for the Rabat Regional Express Rail project and a loan agreement on water policy. A new initiative will explore commercially viable ways to export renewable electricity from Morocco to France, including an undersea interconnection between North Africa and Southern Europe, alongside technical talks on green hydrogen where Morocco has billion-dollar investment plans.

On security, France is moving from simple arms sales toward local defence industrial development in Morocco, with technology transfer and production plants on Moroccan soil. Lecornu described ties as at a “turning point,” while Akhannouch spoke of “a shared strategic vision, restored trust and common ambition.”

An Unprecedented Friendship Treaty Takes Shape

On 20 May 2026, French Europe and Foreign Affairs Minister Jean-Noël Barrot and Moroccan Foreign Minister Nasser Bourita announced work on an unprecedented bilateral treaty. Bourita described it as an “unprecedented political, legal and historic agreement,” to be signed during a future state visit by King Mohammed VI to France.

Barrot stressed that it will be the first treaty of this kind France signs with a non-European country, and the first such treaty Morocco signs with a European country. Structured around four pillars—economy and industry, security and military, culture and Francophonie, and politics and geostrategy—the treaty would see France commit to significant investments in automotive, rail, defence and maritime transport, while Morocco grants preferential access and tax incentives to French firms.

A joint Franco-Moroccan committee of 11 members is already drafting the text, with a first draft expected in 2026. The goal is to make Morocco France’s main strategic partner outside the EU, while France consolidates its position as Morocco’s top long-term ally—a development that fits squarely within the broader dynamics covered in our pillar, Africa: The New Scramble.

The Pegasus Shadow That Refuses to Lift

Pegasus, developed by Israeli company NSO Group, was revealed by the Pegasus Project consortium from 2021 onward to have been used by Morocco against up to 10,000 phone numbers. Among the alleged targets were French ministers and senior figures, with phones linked to President Emmanuel Macron himself reportedly on the list, though Morocco has denied responsibility.

A French judicial investigation into Pegasus-related surveillance is ongoing and could result in criminal charges against Moroccan officials. According to former Moroccan intelligence officials, since 2017 Moroccan services have used Pegasus against foreign officials including six French ministers, one of whom is Lecornu himself—then defence minister, now the prime minister signing partnership deals in Rabat.

During Lecornu’s July 2026 visit, a media consortium published fresh allegations that Morocco used Pegasus to target French officials at a time of heightened diplomatic tension. The spyware scandal is not resolved; it is being managed, with legal processes continuing while political leaders on both sides have decided not to let Pegasus derail their strategic agenda.

Why the Economics Override the Outrage

France is Morocco’s main economic and financial partner, holding about 30.8% of the total foreign direct investment stock. Over 950 French subsidiaries operate in Morocco, nearly all CAC 40 companies have a presence, and joint ventures support more than 150,000 direct and indirect jobs.

The October 2024 state visit by President Macron to Rabat created the template for today’s partnership, with 22 agreements worth about €10 billion ($10.9 billion) signed in sectors including high-speed rail for the 2030 FIFA World Cup, green hydrogen, water management and civil protection. The Agence Française de Développement provided more than €1.2 billion ($1.3 billion) in financing to Morocco in 2022 alone, focused on energy transition and urban development.

Morocco is also already the leading African investor in France in equity terms, signalling genuine two-way capital flows. For both French and Moroccan elites, too much investment, infrastructure planning and industrial co-production are now tied to the relationship for Pegasus to be allowed to disrupt it.

Regional Balancing and the Great-Power Contest

France’s rapprochement with Morocco is also about regional balancing after years of deteriorating relations with Algeria and Tunisia over visa restrictions, migration and Western Sahara. With France having reduced its military presence in West Africa and the Sahel, it needs reliable civilian and economic partners on security, and Moroccan firms are expanding aggressively across the region in banking, telecoms, construction and fertilisers.

Paris is worried about losing ground to Spain and China in North Africa. Spain signed 20 agreements with Morocco in February 2023 and proclaimed a “new era of mutual trust,” while China’s Belt and Road-linked presence in African infrastructure creates pressure on France to reassert its role in the Western Mediterranean and West Africa.

By elevating Morocco to priority partner status through a treaty, France gains a logistical and financial conduit to African markets while locking in preferential access for French companies against Spanish, German, Gulf and Chinese competitors. For Morocco, the partnership brings explicit French support for its Autonomy Plan for Western Sahara, aligning Paris with Washington and marginalising Algeria’s position.

What Investors Should Watch Next

The ongoing French investigation into Pegasus use by Moroccan actors introduces legal uncertainty, but the political signal from Paris is that state-level cooperation will continue and deepen. Companies operating in sectors near security and data—telecoms, defence, fintech—should assume a higher compliance burden and pay attention to privacy and cyber-security regulations in both jurisdictions.

The treaty’s design, with preferential access and tax incentives for French companies, could effectively create a quasi-protected space for French firms in key Moroccan sectors. Non-French investors may find themselves at a relative disadvantage in government-linked projects unless they partner with French firms or Moroccan conglomerates benefiting from the treaty framework.

Rail, ports, logistics, electricity interconnection and hydrogen infrastructure associated with the partnership will likely attract decades-long financing and PPP structures. The current trajectory suggests a strong, treaty-backed framework resilient to electoral changes in France, though Pegasus and broader surveillance issues will remain a reputation risk for companies closely associated with Moroccan or French security services.

Frequently Asked Questions

What did France and Morocco agree to in July 2026?

French Prime Minister Sébastien Lecornu and Moroccan Head of Government Aziz Akhannouch signed around 14 cooperation agreements covering energy, transport, water, migration, security and defence. The package includes French Development Agency financing for the Rabat Regional Express Rail project, a water policy loan, and a new initiative to explore exporting renewable electricity from Morocco to France via undersea interconnection.

Why are France and Morocco proceeding despite the Pegasus spyware scandal?

Economic interdependence makes disengagement unthinkable: France holds 30.8% of Morocco’s FDI stock, over 950 French subsidiaries operate there supporting more than 150,000 jobs, and a €10 billion package of agreements was signed in October 2024 alone. Both governments have chosen to manage the legal processes around Pegasus while insulating the broader strategic and commercial relationship from the controversy.

How does the France-Morocco partnership affect other foreign investors?

The treaty’s preferential access and tax incentives for French companies could create a quasi-protected space in key sectors like automotive, rail, defence and renewables. Non-French investors from Europe, the US, Asia and the Gulf may need to partner with French firms or Moroccan conglomerates to participate in government-linked projects, while the partnership also counters Chinese and Spanish influence in North Africa.