Rethinking Development Cooperation: Involving Companies More

Germany rarely utilises the potential of international cooperation: While other states closely link investments and trade with development cooperation, our foreign trade engagement remains fragmented. The German Chamber of Commerce and Industry (DIHK) demands closer integration of business interests with development aid—for sustainable perspectives, new markets and improved competitiveness.

Global crises, geopolitical disruptions and ambitious sustainability goals are reshaping the global economy. For German businesses, this opens up opportunities—especially in emerging and developing countries. However, current German development cooperation fails to tap into these opportunities adequately. Instead of strategic economic cooperation, it often relies on isolated projects. The German Chamber of Commerce and Industry (DIHK) calls for a paradigm shift: Development cooperation and foreign trade need to be consistently interconnected. This is the only way to facilitate long-term investments, technology transfers and sustainable prosperity—both internationally and within Germany as a business location.

This article was the Topic of the Week in the 2025 newsletter for Week 43.

Connecting Economy and Development

Against the backdrop of numerous geopolitical challenges, diversifying supply and sales markets has become an increasingly important goal for German businesses, especially by strengthening economic cooperation with emerging and developing countries.

Other countries—including within Europe—actively pursue national economic interests via strategic, often aggressive foreign trade policies, tightly interlinked with development cooperation. On average, more than 30% of EU development cooperation budgets directly benefit domestic companies. By contrast, in Germany, according to OECD data, the figure is merely 11%.

Germany largely refrains from systematically using the financial and human resources of development cooperation to support its own economic interests.

From the perspective of the German Chamber of Commerce and Industry (DIHK), this approach should change to enhance technological contributions in areas like agricultural modernisation and healthcare improvements within development regions.

Greater Economic Collaboration with Partner Countries

Beyond the existing Federal Ministry for Economic Cooperation and Development (BMZ)-funded initiatives on "Cooperation with Businesses," bilateral projects, in particular, offer significant potential for expanding trade and investment.

Officials overseeing German development cooperation programmes in partner countries currently evaluate schemes according to ESG (Environmental, Social and Governance) criteria. Going forward, these programmes should also be analysed and designed for their potential to benefit the German economy. This would aim for a cohesive representation as "Team Germany," involving key stakeholders from both foreign trade promotion and development cooperation.

Partner Countries Advocate for Trade and Investment

Representatives from partner governments consistently call for greater engagement from German businesses within their economies. For many, trade and investment are essential for employment and sustainable prosperity. Consequently, they strongly encourage the shift in German development cooperation towards expanding economic partnerships.

Strengthening Foreign Trade Organisations

Many of the jointly implemented programmes could facilitate enhanced participation by German businesses locally, particularly through the expanded use of company-focused initiatives. These would range from corporate delegations and trade fair participation to business networking events and individual advisory services.

Such activities should be led by foreign trade promotion actors (German Chambers of Commerce Abroad, country-specific associations and professional organisations) as they possess the required expertise and experience in matchmaking measures. The respective measures should be financed via BMZ bilateral cooperation funds. Close coordination with the Federal Ministry for Economic Affairs and Energy is essential to avoid overlapping responsibilities and tools within foreign trade promotion.