Development cooperation

The BMZ manages around €10 billion a year. It works through implementing organisations, development banks and multilateral funds, in 65 partner countries and globally. This is the portfolio she has led since 6 May 2025.

Founded
14 Nov 1961
Seats
Bonn & Berlin
Budget 2026
€10.05 bn
Reem Alabali-Radovan in a black suit speaking from a dark lectern marked giz, gesturing, in front of a backdrop of pale triangles
Fig. 01Speaking at an event of the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), the federal implementing organisation for technical cooperation. Date not stated in the supplied file.
The system

How German development cooperation works

The BMZ sets strategy and budgets. Implementation is delegated to specialised organisations. Partner countries agree priorities with Germany in government negotiations.

GIZ

Technical cooperation: advice, training, capacity building. It is a federal enterprise with staff worldwide.

KfW Development Bank

Financial cooperation: grants and loans for infrastructure, energy, water and finance systems. Its subsidiary DEG finances private companies.

Multilateral

Contributions to the World Bank, regional development banks, UN agencies and global funds such as the Global Fund and Gavi.

Civil society

Funding for NGOs, churches, political foundations and municipal partnerships, many of them in Ukraine since 2022.

Specialised agencies

The Federal Institute for Geosciences and Natural Resources (BGR) and the National Metrology Institute (PTB) carry out specialised technical cooperation.

Oversight

The Bundestag's budget and development committees, and the Federal Audit Office.

Budget

A shrinking envelope

Section 23 of the federal budget. The figures are as adopted, except the 2027 government draft, on which the Bundestag votes at the end of November 2026.

12.162023€ billion
11.222024€ billion, budgeted
10.312025€ billion
10.052026€ billion, −2.4%
9.472027 draft€ billion, −€586.6m

Sources: Bundestag text archive, Sept 2025, Nov 2025, Sept 2026; hib 655/2026.

OECD data show the same trend in Germany's total official development assistance (ODA), which also includes refugee costs at home and other ministries' spending. ODA was US$36.7 billion (0.79% of gross national income) in 2023, US$32.4 billion (0.67%) in 2024, and a preliminary US$29.1 billion (0.56%) in 2025. Because global aid fell even faster, by 23.1 per cent in 2025 as the United States cut its programmes, Germany became the largest donor in the OECD's Development Assistance Committee.

The 2026 reform

Zukunft zusammen global gestalten

Presented on 12 January 2026. Implementation runs until summer 2027.

Die deutsche Entwicklungspolitik wird damit strategischer, fokussierter und partnerschaftlicher.“German development policy will thereby become more strategic, more focused and more partnership-based.” (translation)
12 January 2026 · bmz.de
  • 01PrioritiesFood security, crisis support, economic cooperation and multilateral structures.
  • 02Finance instrumentsEmerging economies are to be financed mainly through repayable loans; grants are concentrated on the least developed countries, with health and food security as focal areas there.
  • 03RegionsEU neighbourhood, Middle East and North Africa, the Sahel, Sudan and the Horn of Africa.
  • 04Private sectorA stronger role for business, including nine new focus countries for close cooperation with German companies, Indonesia among them.
  • 05CriticismBrot für die Welt warned that a reform which is mainly “verkleidete Kürzungspolitik” (disguised austerity) would harm people in the Global South. The Greens and the Left argue it puts German economic and geopolitical interests above the 2030 Agenda. See Criticism.
The argument

Why development cooperation matters to Germany

These are the reasons the government and the minister give. Counter-arguments are noted where they are part of the parliamentary record.

Global stability

Crises spread across borders. The minister's line in the September 2026 budget debate: “Wir müssen gemeinsam handeln – und zwar jetzt” (we must act together, and now).

Economic relationships

“Unsere Wirtschaftskraft, unser Wohlstand leben von internationaler Zusammenarbeit” (our economic strength and prosperity depend on international cooperation). She noted that almost one in four jobs in Germany depends on exports.

Climate

In 2024, 79 per cent of Germany's €6.1 billion in budget-funded international climate finance came from the BMZ. See Climate & development.

Migration

The government argues that development addresses the reasons people are forced to leave. Critics warn against making aid conditional on migration control.

Security

The government places development in a “Dreiklang” with diplomacy and defence. The opposition AfD has repeatedly demanded that the ministry be abolished.

Supply chains & partnerships

Energy partnerships, raw materials and skilled labour connect partner countries' development with German interests. The reform plan makes this link explicit.

Human development

Health and food: €1 billion for the Global Fund (2026–28), €600 million for Gavi, school feeding and hunger programmes.

International partnerships

“Wir setzen auf Solidarität und starke internationale Zusammenarbeit” (we rely on solidarity and strong international cooperation), 9 September 2026.

Sources
  1. BMZ, reform plan, 12 Jan 2026: bmz.de
  2. OECD, development co-operation profile Germany: oecd.org
  3. Federal Environment Ministry, climate finance 2024: bundesumweltministerium.de
  4. Brot für die Welt, 13 Jan 2026: brot-fuer-die-welt.de
  5. BMZ, implementing organisations: bmz.de