Combined expertise strengthens Germany’s foreign trade

The Federal Government stands alongside the German business community and aims to integrate development cooperation and foreign trade policy through partnerships.

The challenges of the global economy call for new forms of cooperation. In order to promote sustainable economic development in partner countries whilst at the same time strengthening the competitiveness of German companies in international markets and securing access to key raw materials, a range of instruments and initiatives are being brought together – from promotion of foreign trade, through investment, export and raw materials financing to development cooperation programmes.

Through this integration, the initiatives listed below create better framework conditions for investment, trade, the securing of strategic raw materials and sustainable growth.

Through its raw materials strategy, the Federal Government aims to secure the long-term supply of critical and strategically important raw materials to the German economy. The focus is on diversifying sources of supply, building resilient supply chains, sustainable raw materials extraction and international partnerships. The strategy thus lays the foundation for the competitiveness of German industry and the transition to a climate-neutral economy.

Federal Government UFK-Guarantees make an important contribution to the implementation of the raw materials strategy. They support the financing of international raw materials projects and promote investments that serve to ensure Germany’s long-term supply of strategically important raw materials.

Germany maintains raw materials partnerships with numerous countries, as well as climate, energy and transformation partnerships. Through these partnerships, the Federal Government, together with international partners, promotes the development of sustainable energy and raw materials value chains. The aim is to support the industrial transition towards a climate-neutral economy, to boost investment in future-oriented technologies and to secure the long-term supply of strategically important raw materials.

UFK-Guarantees can support the financing of such projects, thereby making an important contribution to the sustainable transformation and security of supply for the German economy.

Germany Trade & Invest (GTAI) is the Federal Republic of Germany’s economic development agency and supports German companies by providing market analyses, sector information, country reports and details of tenders. GTAI also provides valuable information on future markets and investment opportunities in the areas of critical raw materials, the energy transition and sustainable value chains. In doing so, GTAI complements the UFK-Guarantees and supports companies in identifying suitable raw materials and infrastructure projects.

As a key player in the promotion of foreign trade, GTAI works closely with the German Chambers of Commerce Abroad (AHKs), the federal ministries and other partners within Team Germany.

The German Society for International Cooperation (GIZ) supports the German Government in its international cooperation efforts for sustainable development. On behalf of various federal ministries, it assists partner countries in areas including the promotion of sustainable economic structures, the energy transition, climate action, vocational training and the development of resilient supply chains.

Through its projects, GIZ creates framework conditions that facilitate German companies’ access to international markets and promote sustainable investment. Together with instruments for the promotion of foreign trade – including Export Credit Guarantees, UFK-Guarantees and Investment Guarantees – it helps to link economic development, sustainable growth and international partnerships.

The ‘Förderlotse Wachstumsmärkte’ (Promotion Guide Growth Markets) helps companies find suitable promotion and financing instruments for their international projects. This online service brings together information on Germany’s instruments for the promotion of foreign trade – ranging from financing solutions for key raw materials projects, through export financing and investment support, to development cooperation programmes – and makes it easier for companies to get in touch with the relevant contacts.

The Promotion Guide thus helps to make the German Government’s wide range of support programmes transparent and to assist companies in tapping into new growth markets.

Export Credit Guarantees issued by the Federal Government (Hermes Cover) support German companies in tapping into international markets by covering against commercial and political risks associated with export transactions. They facilitate the financing of German goods and services and strengthen the competitiveness of the German export sector – particularly in relation to business in emerging and developing countries. Export Credit Guarantees are a key instrument used by the Federal Government to promote the German export sector; in addition to helping companies enter new foreign markets, they make an important contribution to safeguarding jobs and strengthening competitiveness.

Federal Government Investment Guarantees protect German companies making direct investments abroad against political risks such as expropriation, war or transfer restrictions. They provide planning certainty and facilitate investment, particularly in emerging and developing economies as well as in strategically important future markets. As part of the promotion of foreign trade, they complement Export Credit Guarantees and UFK-Guarantees and help to support German companies in tapping into new markets and establishing international value chains.

Africa plays a key role in the diversification of international supply chains and the supply of critical raw materials. As part of Germany’s Africa policy, the Federal Government supports companies in entering the market and investing on the African continent. The diversification of international supply chains and the supply of critical raw materials play a key role.

The Africa Business Network provides information on business opportunities and funding schemes. The ‘Compact with Africa’, a G20 initiative, improves investment conditions in selected African partner countries and creates new opportunities for German companies by facilitating long-term economic relations on the African continent. Federal Government UFK-Guarantees can support the financing of raw materials projects in Africa.