Joint economic bodies and cooperation councils

Important instruments of bilateral economic relations include the joint economic commissions and cooperation councils (document in German), and the working groups on commerce and energy of the binational commissions agreed on by the governments of the partner countries. In this context, “joint” signifies that representatives both of the governments and of the business community (business associations, companies) participate in the regular events. The bodies work to promote trade in goods between the economic partners, to intensify mutual investment relations, and to boost technology transfer.

Africa Business Network

The Africa Business Network works to network established players and programmes in the areas of foreign trade promotion and development cooperation. It also provides German companies with a comprehensive range of information, advice and support as they plan their route onto the African market. The Africa Business Guide (website in German) published by GTAI sets out detailed information on business conditions in African markets, promising sectors as well as listing contact partners in Germany and on the ground. The office of the Africa Business Network leads companies to undertake an initial consultation on foreign trade promotion with the IHK Network Office Africa at DIHK Service GmbH or on development cooperation with the Agency for Economic Affairs and Development. It has a number of ‘Africa Partners’ on hand to answer companies’ questions throughout the market entry process. The office also offers new foreign trade promotion measures for market entry in Africa.

Business councils and business forums

In addition to the joint economic commissions and cooperation councils agreed between the governments, there are also many bodies organised independently by the business community. Many of these take the form of business councils or business forums (cf. Federation of German Industries).

High-level government consultancy provided by the German Economic Team on behalf of the Federal Ministry for Economic Affairs and Climate Action

The Federal Ministry for Economic Affairs and Climate Action finances high-level government consultancy for Ukraine, Moldova, Belarus, Georgia, and Uzbekistan. The main objective is to provide continuous support and guidance on economic reform processes. The team of consultants works closely with national research institutes and international organisations on a demand-driven basis, analysing current economic policy problems and developing specific recommendations for action for high-ranking decision-makers in these countries. The focus of the consultancy is on macro-economic analysis and other issues including fiscal, monetary, and exchange-rate policy, debt management, trade and integration policy, development prospects, and on ways to attract foreign direct investment and improve the investment climate. Advice on regulation and privatisation work is also provided. Implementation of the consultants’ recommendations for action also benefits German businesses on the ground.

Bilateral administrative partnerships

In many countries, outdated administrative structures, excessive bureaucracy and non-transparent decision-making processes create market barriers that are difficult to overcome. Often, governments lack the necessary expertise to address this situation. In order to help with this problem, the Federal Ministry for Economic Affairs and Climate Action has set up bilateral administrative partnerships. Under this instrument, it works together with the business community to identify structural challenges and offers German administrative expertise to partner governments. Deploying German civil servants can help modernise and reform foreign administrations and, in the medium term, improve the business environment for both local companies and German firms on the ground.

The administrative partnerships are essentially based on the EU instrument of Twinning (article in German), via which the Federal Ministry for Economic Affairs and Climate Action is also involved in many partner countries. They are led by administrative experts who draw upon upon twenty years of networking experience and can offer a high level of technical and project expertise.

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By concluding bilateral investment treaties (page in German) with developing and emerging economies, the Federal Government creates a stable environment for German foreign direct investment. The treaties furnish the investors with comprehensive legal protection for their investments under international law and make it easier for SMEs in particular to develop foreign markets. Also, they form the basic precondition for the assumption of federal guarantees for German foreign direct investment in order to provide coverage against political risks.

On 5 November 2016, the Federal Government adopted key points for a new export strategy. The aim of the measures is to strengthen the competitiveness of German companies bidding for strategic large-scale projects abroad. As a first step, life was made easier for exporters needing to insure high volumes of services/quantities of parts supplied to projects abroad.

The instruments of AKA Bank, KfW-IPEX and DEG - Deutsche Investitions- und Entwicklungsgesellschaft m.b.H. are available to finance exports and projects abroad. Find out more (article in German)

Export credit guarantees (Hermes insurance)

State export credit guarantees are available to all German exporters as well as to the banks financing these exports. They can be used to insure against default on repayment claims due to economic and political reasons, with the exporting company paying a premium commensurate with the risk. They do not include funding, i.e., cash grants or subsidies.

Export credit guarantees supplement the products provided by private credit insurers. They are primarily called upon in cases where the private sector does not offer any (adequate) insurance cover. These especially include exports of goods and services to emerging and developing economies. Export credit guarantees particularly help SMEs to tap hard-to-access markets and to carry on doing business even when times are difficult. Find out more

Investment guarantees

On application, the Federal Government provides guarantees for investments by Germany-based companies in developing and emerging economies and former countries in transition in order to insure them against political risks. The investment must be eligible for assistance and enjoy adequate legal protection. Commercial risks are not covered. Find out more

Guarantees for untied financial loans

Guarantees for untied financial loans form an integral part of the Federal Government’s raw materials strategy. They provide cover for loans from financial institutions based in Germany (and, upon certain conditions, also from foreign banks) for raw materials projects, protecting against the risk of default on repayments for commercial or political reasons. By doing so, they make an important contribution to ensuring that the Federal Republic of Germany is supplied with the raw materials that it needs. Untied financial loans are not tied to German supplies or services, but are rather project-based. Find out more

The Federal Government’s Strategy Paper "A fresh stimulus for tenders for major strategic international projects – improving Germany’s chances" (paper in German) sets out key points which provide for the following in particular:

• better coordination of the political backing for projects in the strategic interest of the Federal Republic of Germany
• better use of the existing instruments to promote foreign trade and investment, with these instruments to be supplemented in certain cases
• supplementing of the instruments to finance strategically relevant projects via large low-interest loans in certain cases
• intensification of the international initiatives for further developing export financing rules

The Federal Government Coordinator for Projects Abroad in the Strategic Interest of the Federal Republic of Germany, Udo Philipp, works together with a team of colleagues from the Ministry to classify specific projects as foreign projects in the interest of Germany. This classification indicates the will of German government to provide special political support for the project. Contact: Division for Strategic Projects Abroad, Africa Business Network.

On behalf of the German Federal Ministry for Economic Affairs and Climate Action, GTAI also offers a broad selection of international tender information. It lists international tenders made by the KfW Development Bank as well as current tenders linked to development projects led by the World Bank, European Commission, United Nations, Inter-American Development Bank and Asian Development Bank.

As one of the world’s leading purchasers, the United Nations buys goods and services worth just under USD 20 billion each year. The main procurement centres include New York, Copenhagen, Rome and Geneva, and the procurement takes place decentrally by the various UN agencies. Tenders and statistics can be accessed centrally, at the United Nations Global Marketplace.

The leading goods bought by the UN include pharmaceutical products, foodstuffs and construction services, and the main services used are in the field of transport, technology and administrative services. On behalf of the German Federal Ministry for Economic Affairs and Climate Action, the German chambers of industry and commerce abroad in New York, Milan and Copenhagen offer support with developing business contacts with the UN.

International, European and national UN procurement seminars as well as sector-specific events organised on behalf of the German Federal Ministry for Economic Affairs and Climate Action not only provide opportunities for companies to find out what they need to know, but also offer a platform where they can enter into direct exchange with UN organisations.
In New York and Geneva, staff at the permanent representations to the United Nations (staff seconded from the Economic Affairs Ministry) are also responsible for procurement issues. They stay in contact with the relevant UN offices and are available as a contact for German firms.

World Bank Group

The International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA) and the International Centre for Settlement of Investment Disputes (ICSID) are jointly known as the World Bank Group. The International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA) form the World Bank in the narrower sense. Their main task is to promote economic and social progress in developing countries in order to help people live better lives.

Every year, the World Bank provides funding worth approximately USD 40 billion to projects in developing and emerging economies. Up to 100,000 contracts are concluded with the private sector every year. The World Bank’s website provides further information about the procurement procedures.

Regional development banks and other organisations

Regional development banks offer further business opportunities for German companies. Their aim is to promote economic and social development. They include the following:

• African Development Bank (AfDB)
• Asian Development Bank (ADB)
• Asian Infrastructure Investment Bank (AIIB)
• European Bank for Reconstruction and Development (EBRD) /
• European Investment Bank (EIB)
• Inter-American Development Bank (IDB)
• Caribbean Development Bank (CDB)
• International Fund for Agricultural Development (IFAD)
• Organisation for Economic Co-operation and Development (OECD)
• International Atomic Energy Agency (IAEA)