German representatives of financial and technical cooperation currently examine their programmes based on the ESG (Environmental, Social and Governance) criteria. Moving forward, these programmes should also be strategically analysed and developed for their potential to benefit the German economy. German foreign missions should support and accompany this process. A united approach by the relevant actors of foreign trade promotion and development cooperation (Team Germany) is to be pursued.

Representatives of partner governments repeatedly criticize the lack of German economic engagement in their countries, and even request such involvement. Trade and investments are key for many of them in creating sustainable prosperity and employment in their countries. Consequently, they advocate for German development cooperation to focus more on expanding economic partnerships.

1.1 Utilising Bilateral Priorities for Economic Cooperation

The coalition agreement stipulates that German development cooperation should increasingly align with the interests of German businesses. Bilateral collaboration offers the greatest potential for this goal.

Many programmes carried out with partner countries could facilitate greater on-site involvement of German companies, especially by increasing the use of business-related mechanisms, such as corporate trips, trade fair participation, economic events, and individual business consultations. These activities should be conducted by actors in foreign trade promotion (foreign chambers of commerce (AHKs), country clubs, and professional associations) who hold the required expertise and experience in matchmaking initiatives. They ought to be financed through bilateral collaboration funding from the Federal Ministry for Economic Cooperation and Development (BMZ). Coordination with the Federal Ministry for Economic Affairs and Energy (BMWi) is crucial to avoid overlaps with foreign trade promotion tools.

1.2 Practising Partnership Orientation – Fostering Competition

Currently, the implementing organisations of financial and technical cooperation are almost automatically commissioned by the BMZ to execute bilateral projects. Foreign trade actors should also be allowed to apply for selected projects at BMZ. This would honour the "competition" principle stipulated in the coalition agreement concerning German development cooperation. Abroad, AHKs enjoy a unique position in conducting related activities due to their role as official representatives of German business and their networks with local firms. Project selection should be done in advance of bilateral government negotiations – coordinated among BMZ, BMWi, BMZ's implementing organisations, relevant economic associations, and the German embassy on-site.

1.3 Considering Resource Asymmetry

The financial and personnel resources of development cooperation far exceed those of German foreign trade organisations. Therefore, particularly for large business-related projects in developing and emerging countries, cooperation should be sought. On-site, this mostly concerns collaboration between AHKs and GIZ. Ideally, AHKs should act as project recipients for BMZ, defining GIZ’s role through subcontracts.

1.4 Establishing Country-Specific Funds

An alternative approach could be setting up funds from existing bilateral cooperation resources to pragmatically and swiftly support matchmaking activities. These could be aimed at countries or specific regions. Agreed measures could align with bilateral priorities or be event-driven, for instance during major economic events, trade fairs, or corporate trips accompanying high-ranking politicians. Sequa, established as an interface between foreign trade promotion and development cooperation, should coordinate the fund and liaise with relevant partners from foreign trade and politics.