Bangladesh is Gradually Becoming a Priority Country for France under Indo-Pacific Development Policy, but Global Funding Faces G7 Uncertainties
Bangladesh is gradually becoming a priority country for France under its Indo-Pacific development policy, with increasing funding and cooperation, particularly through the Agence Française de Développement (AFD) Group. However, officials from the French government and development agencies have cautioned that this assistance—like that to other nations—may face challenges due to the evolving global aid landscape, especially following the United States’ gradual pullback from international development commitments. With the upcoming G7 summit looming large, the global funding scenario remains uncertain. France, alongside its European and international partners, is watching closely to assess the direction of development finance, particularly in light of the United States’ influential role in the group.
Officials from France’s Ministry for Europe and Foreign Affairs told journalists from Bangladesh, Cambodia, India, Indonesia, the Philippines, and Sri Lanka—currently on a press tour organized by AFD in Paris—that the French approach to the Indo-Pacific region remains cooperative and development-oriented. However, they acknowledged that key shifts in global geopolitics and trade policy, including those stemming from U.S. tariff and aid policy, are forcing a rethink of how development partnerships are structured. One official stated, “Our development policy is undergoing quite a lot of changes due to several factors, including US tariff and aid policy.” With the U.S. pulling back on its aid commitments and deprioritizing development activities, there is growing pressure to redesign development policy around new forms of partnership and shared investment, particularly in light of rising needs from climate challenges and digital transitions.
The Indo-Pacific region remains a core focus of France’s development agenda due to its strategic significance—hosting 54% of the global population, accounting for 50% of global carbon emissions, and contributing around 40% of global GDP. According to AFD data, approximately one-third of its €50 billion global portfolio has been channeled into the Indo-Pacific. In Bangladesh, French assistance has grown substantially, rising from €40 million in 2012 to over €1.2 billion in recent years. One of the flagship projects includes a €315 million multi-donor-supported initiative to supply safe drinking water to residents of Dhaka. While countries such as India, Vietnam, and Cambodia top AFD’s priority list due to historical ties and the presence of French nationals, Bangladesh is steadily climbing that list as a country in economic transition and with shared environmental challenges.
During a meeting with journalists, AFD Group Executive Director Philippe Orliange explained that the bulk of the agency’s development financing is raised from financial markets and multilateral partners, with only a small share—2.9%—coming directly from the French public treasury. He emphasized that, “Regardless of political changes in France or Bangladesh, the financial challenge is not the issue—we must act proactively.” He added that opportunities for collaboration across Europe and with global financial institutions, including Chinese banks, should be explored to strengthen development outcomes.
The private-sector arm of AFD, Proparco, and its technical cooperation agency, Expertise France, are also looking to expand operations in Bangladesh. Proparco Deputy CEO Djalal Khimdjee said Bangladesh’s large population presents an important opportunity for private-sector investment, especially in key sectors such as health and textiles. He noted that successful partnerships, including improved health services in the garment sector, have already built trust and interest. Similarly, Expertise France CEO Jeremie Pellet noted that discussions are ongoing with Bangladeshi government bodies to explore future cooperation in areas such as technology, innovation, and climate resilience.
Yet the broader backdrop remains uncertain. France, with over €3.3 trillion in national debt and recent political instability including changes in prime ministers, is under pressure to balance domestic fiscal realities with international commitments. As the current presidency holder of the G7, France hopes to influence the group’s direction toward reinforcing sustainable development funding. However, officials confirmed that if negotiations at the G7 fail to yield favorable outcomes, the French Foreign Ministry has already warned development agencies that the number of future projects may need to be reduced.
Despite these challenges, French officials underscored their strong commitment to global development, especially in line with the Paris Agreement and the Sustainable Development Goals (SDGs). They reiterated that, even as financial volumes from donors decline, France remains conscious of global aid deficiencies and determined to prioritize strategic partnerships with countries like Bangladesh. The country’s economic transition, climate vulnerabilities, and population size make it a natural partner for France’s Indo-Pacific engagement. As one official stated, “France is very much attached to development policy and upholds the principle of international solidarity.”
In sum, while Bangladesh’s position as a priority country for France continues to strengthen under the Indo-Pacific strategy, the path ahead will depend on how the global development architecture evolves—particularly after the G7 summit, where the U.S. stance on aid and investment could reshape the scope and nature of future international development efforts.
