Record foreign investment at Choose France 2024
On 13 May 2024, the Château de Versailles hosted the ‘Choose France’ summit. The event revealed record levels of foreign investment in France. With more than €15 billion spread over 56 projects, the initiative aims to boost various economic sectors and create 10,000 jobs. This article explores the key areas of these investments, the reasons for France’s attractiveness, and the implications for the country’s economic future.
Priority areas: AI, decarbonization, health and finance
Artificial intelligence and cloud computing
The artificial intelligence (AI) and cloud computing sectors are at the forefront of these investments. Microsoft has announced a €4 billion investment in a new data centre in eastern France. The money will also be used to expand existing centres near Paris and Marseille. This investment is in response to growing demand for AI and cloud services.
Amazon will invest €1.2 billion to develop its cloud infrastructure in the Paris region and its logistics infrastructure in Auvergne-Rhône-Alpes. France has become a strategic hub for data centres thanks to its low-carbon energy, temperate climate and excellent connectivity. Géraldine Camara, Managing Director of France Datacenter, points out that these advantages make France attractive to digital giants.
Decarbonization and green mobility
Decarbonization is another major area of investment. A new low-carbon fertiliser plant could be built in the Somme by 2030. The European consortium FertigHy will invest €1.3 billion in this plant, producing nitrogen fertiliser using hydrogen instead of natural gas.
The green mobility sector will also benefit from major investment. Skeleton Technologies will invest €600 million in Toulouse to develop and produce new-generation batteries, creating 300 jobs. A plant to manufacture an ‘electric regional aircraft’ will also be built in the Nouvelle-Aquitaine region, strengthening France’s position in technological innovation and the ecological transition.
Healthcare sector
Healthcare is also attracting significant investment. Pfizer will invest 500 million euros to develop medicines and conduct new clinical trials. AstraZeneca will spend €365 million to modernise and expand its factories. GSK will invest €140 million to modernise its sites at Évreux, Saint-Amand-les-Eaux and Mayenne. Novartis, with an investment of €28 million, will develop nuclear medicine, creating 25 jobs.
These investments illustrate the confidence of the major pharmaceutical companies in the French research and development ecosystem. They also demonstrate the growing importance of France as a centre for medical innovation in Europe.
Finance and financial services
The financial sector is also benefiting from this influx of foreign capital. Morgan Stanley, the American bank, is to set up a new European campus in Paris, creating 100 additional jobs. New financial players, such as First Abu Dhabi Bank and Zenith Bank, are entering the French market, reinforcing Paris as an international financial centre.
These financial investments demonstrate the attractiveness of France for international financial institutions, attracted by a stable environment and favourable policies.
Re-industrialisation and plant modernisation
Emmanuel Macron stressed that these investments were a sign of ‘confidence in our country’. During his visit to the McCain plant in Marne, the President highlighted the €350 million invested by the Canadian giant to modernise and increase the capacity of its sites, while reducing energy consumption.
Other significant industrial projects include the KL1 nickel refining plant in Blanquefort, with an investment of €300 million, creating 200 jobs. The town of Blanquefort, which will be affected by the closure of the Ford plant in 2019, sees this project as an opportunity to revitalise its economy. In addition, the Belgian chemical group Solvay will invest €100 million to convert its La Rochelle plant into a production unit for rare earths, essential for manufacturing electric batteries.
A favourable environment for foreign investment in France
France’s pro-business policy, characterised by reforms to the labour code, the abolition of the solidarity tax on wealth (excluding property) and tax cuts, has made the country attractive to investors. The ‘Choose France’ 2024 summit, which attracted 180 foreign leaders, confirmed France’s position as the most attractive country in Europe for foreign investment, according to auditing firm EY.
This attractiveness has also been reinforced by the stability and legibility of economic policies since 2017. The French government has introduced measures to simplify administrative procedures and reduce the time it takes to find available industrial land, making it easier to set up and develop new factories and research centres.
CONCLUSION
The 2024 ‘Choose France’ summit marked a turning point for France’s economic appeal. Record investments exceeded €15 billion across 56 projects. France is positioning itself as a leader in innovation, decarbonization, and reindustrialization. These long-term projects promise to transform the economy, creating jobs and boosting global competitiveness.
The government is simplifying administrative procedures and encouraging foreign investment. Leading companies are welcomed, fostering a stable and attractive environment. France continues to reinvent itself and strengthen its international role.
Favourable policies, solid infrastructure, and a commitment to sustainability and innovation highlight France’s readiness for future economic challenges. The ‘Choose France’ summit shows the confidence of foreign investors and France’s ability to adapt to a changing world.
