Bangladesh is emerging as a priority partner for France under its Indo-Pacific development policy, though officials in Paris warn that global funding flows could face challenges amid shifting US engagement.

French foreign ministry officials told visiting Asian journalists on Wednesday that the country’s development approach in the region is cooperative and centred on solidarity. However, the upcoming G7 summit — where the US role in shaping investment is key — will help determine the outlook for global financing.

“Our development policy is undergoing quite a lot of changes due to several factors, including US tariff and aid policy,” a ministry official said, noting that Washington’s retreat from aid commitments has created a need to rethink development strategies.

France’s Agence Française de Développement (AFD) has expanded its presence in the Indo-Pacific, where half of the world’s population and GDP are concentrated. One-third of AFD’s €50bn in global financing is directed to the region, with flagship projects in India, Vietnam, Cambodia, and Bangladesh.

In Bangladesh, AFD has scaled up funding from €40m in 2012 to over €1.2bn by 2023, with major projects including a €315m water supply initiative in Dhaka. Cooperation now spans energy transition, climate change, health, and green finance.

AFD Executive Director Philippe Orliange said most of its funding is raised from financial markets, with limited reliance on French treasury support. He emphasised partnerships with multilateral lenders such as the World Bank, ADB, and JICA.

French officials assured that Bangladesh remains central to future Indo-Pacific engagement, particularly in climate and sustainable development goals.