In recent years, relations between Mozambique and Germany have strengthened in different areas, reflecting a long-standing partnership based on political dialogue, development cooperation, cultural exchange, and the growth of economic relations.
Germany, as one of the Country’s strategic partners within the European Union (EU), has played a relevant role in initiatives ranging from support for good governance and education to the promotion of renewable energy and vocational training.
This October, the two nations celebrate 40 years of formal cooperation, and during this period, projects worth €1.8 billion (MZN 133.5 billion) have already been implemented in Mozambique.
To better understand the current state and prospects of this bilateral cooperation, in an interview, Inga Tessendorf, Deputy Head of the German Embassy in Mozambique, shared with Diário Económico her vision on the advances, challenges, and opportunities that mark the relationship between the two countries.
What is the general scenario of Germany’s presence in Mozambique today and how do you evaluate the cooperation?
Germany has been working with Mozambique since its independence, that is in 1975, and next year we will celebrate 50 years of formal diplomatic relations, a milestone that underlines the depth and continuity of our partnership, which is very close.
We consider Mozambique a reliable partner and have political, economic, and cultural relations, with many Mozambicans currently living and studying in Germany.
We are present in the Country through the Embassy, which represents the German government, as well as through cooperation organizations such as the German Agency for International Cooperation (GIZ) and the German Development Bank (KfW). We also have the Mozambican-German Cultural Center (CCMA), where German classes are offered and cultural events are held, and we have the German Academic Exchange Service (DAAD) at the Pedagogical University (UP), responsible for academic relations, offering scholarships for postgraduate and doctoral studies.
We have a Chamber of Commerce and Industry (AHK), based in South Africa but with a representative in the Country, connected to German companies already operating in the Mozambican market. There are also business associations that work not only to develop bilateral economic activities but also to attract new companies and investments in Mozambique.
Additionally, there is Germany Trade & Invest (GTAI), an international economic promotion agency that helps international companies establish themselves in Germany and offers free consulting and project support.
Germany is one of the largest European investors in Africa. How do you see Mozambique’s potential to attract more German investment?
Africa has great potential and Mozambique has much to offer, especially in renewable energies and hydroelectric power, in the agriculture and extractive industry sectors, in infrastructure development, and digitalization. However, the investments from German companies are not yet at the level of this potential.
Currently, we have a partnership with the Chamber of Mines of Mozambique (CMM) that helps in assessing the Country’s potential and identifying business opportunities. We also have direct German participation and investments in solid mineral extraction as well as in the sharing of technologies and training for the sector.
Overall, our companies are more linked to the logistics and engineering sector, due to Mozambique having an interesting market for selling turbines, technologies for the mining, port, energy, infrastructure, and construction sectors. Made in Germany products are also present in agriculture and forestry. We also notice growing engagement in offering solutions for the blue economy. Some German companies have been participating in the Mozambican market for many years, focused on digitalization, providing, among other services, technologies and solutions for the production of identity documents and bus license plates.
This year, we were represented at the 60th edition of the Maputo International Fair (FACIM) with an Official German Pavilion, where we had 14 exhibiting companies, excellently representing a small part of the German private sector already active in the Country.
At FACIM, we presented a very rich program detailing opportunities in both Mozambique and Germany. It was an interesting experience where we could get to know the Country, its challenges, weaknesses, and opportunities. In the same context, two German companies were awarded first and second place as the best international exhibitors.
In recent years, what is the value of German investment in Mozambique?
Germany is one of the largest bilateral partners in development cooperation, as well as in humanitarian aid and stability. Over these 40 years, projects worth approximately €1.8 billion (MZN 133.5 billion) have been executed.
Currently, projects under implementation are valued at nearly €850 million (MZN 63 billion). In the last government negotiations held in June 2024, an additional €90 million (MZN 6.6 billion) of new commitments was made.
This week, together with the Mozambican Government, we launched the new agricultural credit lines program, called “Rural Financing Facility – FINOVA,” funded by KfW in cooperation with the Bank of Mozambique and the Zambezi Valley Development Agency.
What are the main challenges German companies face when investing in the Country?
Despite having a vast and interesting market, some challenges persist that restrain investment. These are structural factors related to the investment climate and also infrastructure challenges that can increase costs and limit product access to the market, which undermines the business environment.
Some German companies are not willing to take very high risks and need sustainable guarantees. Due to a more favorable investment environment, South Africa has more German companies than Mozambique.
What is Germany’s position on global crises and the Cabo Delgado conflict?
The German government is very concerned about several global political crises, and at the same time, we see the importance of working with global and international partners to enhance all the cooperation we have carried out in recent years.
Within the framework of our foreign policy conception, the new German government places more emphasis on defining and pursuing our interests. For us, it is fundamental that our economic relations create mutual added value and bring benefits both to our partner countries and to Germany.
We are also interested in achieving stability on the African continent, especially in the Country, which since 2017 suffers from terrorist attacks in Cabo Delgado province, in the north. In this sense, we seek to provide an integrated response, more focused on development and stabilization, and we support refugees, providing over €100 million (MZN 7.4 billion) for 2025. We also provide medical and food aid through the Nexus Norte project.
Nexus Norte is funded by the German Federal Ministry for Economic Cooperation and Development (BMZ) and implemented by GIZ in partnership with the United Nations High Commissioner for Refugees (UNHCR). The initiative aims to improve living conditions for displaced persons, refugees, and members of reception centers, especially women and youth, in selected communities in the North.
Bilateral, we do not have a particular program focused on security, but together we support the European Union Military Assistance Mission in Mozambique (EUMAM-MOZ) and contribute military equipment through the European Peace Facility, a €17 billion fund created by the EU to support military and defense actions, including missions and operations, as well as assistance to partner countries’ armed forces.
How does Germany support Mozambique in energy transition and climate change?
Energy transition and climate change are important topics for us, and we have a portfolio addressing these issues. We have established a new partnership for climate and development, which also includes Mozambique as a direct partner.
At FACIM, we held events focused on climate sustainability, where we emphasized the need for greater engagement with the private sector.
Germany is the third largest bilateral partner of Mozambique in energy; we have projects under implementation valued at €275 million (MZN 20.3 billion) to support the energy transition strategy.
What recommendations do you give to accelerate Mozambique’s development in the coming years?
Worldwide, there is a scarcity of funds in every sense. What we can request as the German government is prioritization and focus, especially in developing countries like Mozambique.
We will have to seek more synergies, research more private investment areas, create strong relations with the private sector, and strengthen economic ties, but without forgetting friendship and cooperation. In this way, it is possible to generate greater visibility and convey the skills and opportunities of the Mozambican market.
Text: Cleusia Chirindza
Photos: Mariano Silva
