Overview
- Development Minister Reem Alabali-Radovan unveiled the BMZ Action Plan for Economy and Development, formalizing closer integration of German companies into project planning and policy consultations.
- Before bilateral negotiations with partner governments, business associations and firms will be consulted to align priorities, with India designated a pilot “lighthouse” partner and four additional economies to be selected.
- The plan prioritizes reliable access to energy, critical raw materials and qualified labor through targeted partnerships, with a stronger role for KfW and instruments aimed at mobilizing private capital.
- Coordination with the Economics and Finance ministries is elevated, while the government draft foresees the BMZ budget falling below €10 billion in 2026, including cuts to bilateral and multilateral programs.
- NGOs and researchers warn that social and environmental standards could be sidelined, noting the BMZ’s intent to bolster initiatives such as the Compact with Africa despite IMF findings that linkages to higher investment remain unclear.