Germany

Summary

ODA Spending

How much ODA does Germany contribute?

Germany was the second-largest donor country among members of the OECD DAC in 2024.

Germany is the fifth-largest donor in proportion to the size of its economy. It spent 0.67% of its GNI on ODA in 2024. Germany is one of the few European countries that does not offset in-donor refugee costs with cutbacks in funding for global development.

How is German ODA changing?

2023 was the fourth year that Germany reached the 0.7% ODA/GNI target. It had done so for the first time in 2016, but fell short between 2017-2019. The rise in ODA and the meeting of the ODA/GNI target coincides with considerable financial commitments by the Germany government during the pandemic and the following surge in-donor refugee costs related to the reception of refugees from Ukraine.

After Germany’s ODA level reached record-high levels in 2020 to 2022, driven by Germany’s response to the COVID-19 pandemic, ODA decreased to US$33.6 billion in 2023 and is projected to decrease further to US$28.3 billion in 2024, in line with a decreasing budget for the BMZ. Following an increased share in in-donor refugee costs in 2023 connected to the large influx of refugees from Ukraine, it is likely that in-donor refugee costs will remain significant in 2024.

On September 26, 2024, the AA published its new Strategy on Humanitarian Aid Abroad. This put forth three high-level priorities: enabling access to populations in need through humanitarian diplomacy; increasing the efficiency, effectiveness, localization, forward-looking perspective, and gender and inclusion-sensitivity of aid; and ensuring that assistance is needs-based, prioritizes the greatest suffering, and is flexible. This was published in the context of severe cuts to humanitarian funding in the draft budget for 2025, with humanitarian assistance cut by 53%.

Where is German ODA allocated?

The German government has a strong preference for bilateral funding. In 2024, bilateral funding accounted for 75% of total ODA. This includes earmarked funding through multilaterals. Germany’s preference for bilateral funding is driven by its two large government-owned implementing agencies, the GIZ and the KfW.

Germany channels the largest share of its bilateral ODA, though still below the DAC average, as grants. The responsibility for administering loans is assigned by the BMZ to the KfW.

Bilateral Spending

The cost of hosting refugees in Germany almost doubled between 2021 and 2022 and has continued to increase in 2023.

The absolute share of Germany’s bilateral ODA towards education has remained stable for many years, at slightly above US$3 billion. However, more than half of these costs are allocated for students from partner countries studying in Germany and thus does not support partner countries directly.

ODA to Sub-Saharan Africa has seen a recent drop in the budget allocation. While Sub-Saharan Africa and MENA region remain focus points due to the commitment to fighting the root causes of migration, Ukraine has received more funds from the German government.

The top recipients of German grant funding are Ukraine (almost exclusively grants), the Syrian Arab Republic, Yemen, and Afghanistan. This is in line with Germany’s support for Ukraine and the BMZ’s prioritization of partnerships within the MENA region.

Multilateral Spending and Commitments

Before 2013, the German parliament capped multilateral spending at one-third of total German ODA. Germany is among the largest donors to Gavi, the Global Fund, and UN agencies. In October 2023, at the Bonn Conference, Germany pledged an additional EUR2 billion or US$2.1 billion to the GCF.

Germany’s earmarked funding to multilaterals, which is channeled through multilateral development organizations for use in a specific sector or country, has increased significantly in recent years. The financial contribution to the European Commission's development budget has increased by more than 50% between 2018 and 2023. However, multilateral funding will likely fall significantly, as indicated by the 2026 budget.

Politics & Priorities

What is the current state of German politics?

Germany is a parliamentary democratic republic. Political power is divided among three branches:

• The legislature, which includes the Bundestag, or parliament, and the Bundesrat, the representative body for Germany’s regional states;
• The executive branch, including the Head of Government, the Head of State, and the Cabinet; and
• The judiciary, which is independent of the other branches.

Elections for the Bundestag are held every four years. In the 2025 German federal election, the CDU/CSU secured victory with 28.6%. The far-right AfD doubled its support to 20.8%, becoming the second-largest party in the Bundestag. Meanwhile, the SPD received only 16.4%, the Greens garnered 11.6%, while the Left reached 8.8%. The FDP failed to meet the 5% threshold, losing parliamentary representation.

The coalition between the CDU/CSU and SPD is led by Friedrich Merz, who took office in May 2025.

With the current government, Germany failed to uphold the commitment to maintaining an ODA quota of at least 0.7% of the country’s GNI for the first time in 30 years, resulting in substantial cuts to ODA. This development is closely tied to Germany’s ongoing budget crisis. Budgetary realities have become increasingly difficult since a Constitutional Court ruling in November 2023 that reinstated the debt brake and prohibited the repurposing of unused debt from COVID-19. This left the government with a significant budget shortfall. In the subsequent budget negotiations, ministries such as BMZ and AA saw severe cuts, impacting Germany's ODA.

To increase the budgetary leeway facing increased demands on defense and infrastructure spending, CDU/CSU, SPD, and the Greens reached an agreement to amend the constitutionally enshrined debt brake during the last parliamentary session of the outgoing parliament in March 2025. This enabled increased defense spending and a EUR500 billion ( US$543.5 billion) infrastructure investment package, which will be dispersed over 12 years. The debt brake caps annual borrowing at 0.35% of GDP. Following the amendment, defense spending will now be subject to the debt brake only up to 1% of GDP, with any additional spending being financed through debt.

Despite the adjustment in the debt brake and the investment package, Germany’s ODA is unlikely to increase in the coming years. The new funds are restricted to additional investments. Estimates for the 2027 budget negotiations taking place in 2026 anticipate a shortfall of EUR 30 billion ( US$32.6 billion), which could potentially lead to an even more severe decline in ODA than projected.

Under the Chancellery, which is responsible for determining policy guidelines, the Ministry for Economic Cooperation and Development BMZ sets development priorities.

The BMZ is organized across six Directorates-General. The regional subdivisions allocate Germany’s bilateral development assistance according to the BMZ’s strategy and priorities. Sectoral subdivisions formulate Germany’s sector strategies, interface with multilateral development institutions, and advise on bilateral programs.

Germany’s two major state-owned development agencies, the GIZ and KfW, operate under the political supervision of the BMZ. Both play key roles in policy development, priority setting, and implementation.

• GIZ plans and executes Germany’s technical cooperation with partner countries. GIZ also provides consulting services to the BMZ’s sectoral divisions through its ‘sector initiatives,’ or Sektorvorhaben; and
• KfW leads on Germany’s bilateral financial cooperation with partner countries. It receives funding from the BMZ and raises its own funds on capital markets.

The BMF, led by the finance minister, develops caps for the federal budget and individual ministerial budgets. This makes it an important stakeholder when it comes to ODA levels, the BMZ’s budget, and long-term ODA contributions.

Who are the key individuals involved with German ODA?

What are Germany's development priorities?

Public sentiment towards ODA has shifted significantly since the 2021 elections, as economic concerns, migration management, and security have come to dominate public debate. This change was triggered by Russia’s invasion of Ukraine, which put security and defense at the center of public debate. As a result, traditional development priorities have receded, and development assistance is now commonly framed as a foundation for economic resilience and lasting security. This perspective is also reflected in reforms introduced by the new government, such as the BMZ Action Plan with the private sector, which aims to better align development cooperation with national economic interests.

By issue

In 2020, the BMZ defined five priority areas for its bilateral and multilateral development cooperation, which were expanded by a 6^st core priority under the previous government. The current government has launched an internal reform process to update its priorities, with initial results expected in spring 2026. Until then, the following remain in effect:

1. Peace and social cohesion:

• Good governance
• Peacebuilding and crisis prevention
• Displacement and migration

2. Zero Hunger – Transforming agricultural and food systems:

• Food security
• Rural development
• Agriculture

3. Sustainable economic development, education, employment:

• Vocational training
• Private sector and financial system development
• Socio-ecological supply chains, trade, and sustainable infrastructure

4. Climate and energy:

• Climate protection and climate change adaptation
• Renewable energy and energy efficiency
• Sustainable urban development

5. Safeguarding our natural livelihoods:

• Biodiversity
• Forests
• Water

6. Health, social security and population dynamics:

• Health, pandemics, and One Health
• Social security
• Population dynamics; SRHR

Global health is recognized as a driver of security, prosperity, and resilience within Germany’s development policy. Integrating German expertise into global health forums, advancing research on AMR, and promoting sustainable health financing are on top of the country's global health agenda. As highlighted in Germany's G7 and G20 presidencies in 2017 and 2022, respectively, and in line with Germany’s strong international response to the COVID-19 pandemic, pandemic response and preparedness have been another focus since 2020.

Climate protection has been emphasized by the BMZ as a ‘cornerstone’ of German development policy, despite the decline in priority of the topic under the current government. Within this sector, the BMZ focuses on supporting LMICs in climate change mitigation, especially through enhancing the energy transition in these countries. Germany entered a ‘Just Energy Transition Partnership’ with South Africa in 2021, followed by Indonesia, Vietnam, and Senegal.

While climate has seen de-prioritization under the current government, it remains committed to reach international climate finance targets. In 2024, Germany reported that it had exceeded its targeted EUR6 billion ( US$6.5 billion) in climate finance. However, in light of the budget cuts to the BMZ, which provides the majority of Germany's international climate finance, it is unclear whether Germany will reach the EUR6 billion ( US$6.5 billion) target in 2025 and 2026.

Germany published a strategy on foreign climate policy after COP28 in 2023 under the former government. The strategy aims to address the changes brought by the climate crisis, emphasizing the importance of swift, ambitious, and cooperative action on a global scale to achieve the Paris Agreement goals. Through a multilateral approach anchored in frameworks like the UNFCCC and the Paris Agreement, Germany seeks to tackle climate change, biodiversity loss, and environmental pollution while promoting social justice and economic prosperity. The strategy, guided by principles of sustainability and international cooperation, prioritizes the reduction of greenhouse gas emissions, the transition to renewable energy, and the protection of vulnerable communities, ecosystems, and global health, aiming to strengthen resilience, peace, and security worldwide.

In April 2024, the BMZ published a strategy paper on Preserving our natural livelihoods. The BMZ announced that it will increase Germany's commitment to international biodiversity conservation to EUR1.5 billion ( US$1.6 billion) annually by 2025, as part of the EUR6 billion ( US$6.5 billion) per year for international climate financing.

Gender equality

The promotion of SRHR for women and girls is highlighted as a development priority in the coalition treaty of the current government. However, the framing around feminist development policy, which was introduced by former Development Minister Svenja Schulze ( SPD), was abolished with the change toward a centrist government in May 2025.

Agriculture

Agriculture has been a long-standing priority of Germany’s development cooperation over the past 10 years. While the current government is expected to gradually phase out of all special initiatives, including on ‘Transformation of agricultural and food systems,’ agriculture is expected to remain a core priority under the current government.

Education

In line with Germany’s special initiative on vocational training and jobs, higher education and vocational training is prioritized. These objectives are mainly supported through bilateral development cooperation. However, the bilateral allocations include significant contributions to GPE and ECW, which are classified by the OECD as bilateral ODA.

By region

The BMZ’s partnership model, introduced by the BMZ 2030 Reform, categorizes bilateral partnerships into three different categories. With its bilateral partners, the BMZ pursues joint long-term development goals. Bilateral partner countries in the EU neighborhood focused on political and economic transformation are considered ‘transformation partners’. ‘Global partners’ is a category composed mainly of MICs, where cooperation focuses on cross-border issues, such as climate change. With ‘nexus and peace partners’, the BMZ aims to work on the causes of conflicts and flight and promote stability and peace. As of October 2025, the BMZ cooperates bilaterally with 65 countries.

North Africa and SSA: The German government's development approach across the African continent focuses on promoting economic development and the creation of jobs, digitalization, climate mitigation, and participation of women.

In January 2023, the BMZ published its Africa Strategy, titled Shaping the future with Africa. It is an update of the Marshall Plan with Africa, which was published under former Development Minister Gerd Müller in January 2017. The updated strategy aims to supplement the development goals set by the AU and its member states, work together with African partners on the global transformation toward a decent and secure life for all in an intact environment, and to cooperate visibly and in solidarity with Africa in times of crisis.

The strategy focuses on six thematic priorities:

• Sustainable economic development, employment, and prosperity;
• Overcoming poverty and hunger and building social security;
• Health and pandemic prevention;
• Feminist development policy and gender equality;
• Rule of law, democracy, human rights, and good governance; and
• Peace and security.

Latin America and Caribbean: The BMZ's work in Latin America and the Caribbean is largely focused on climate and environmental protection, as well as supporting just energy transitions. In July 2023, the BMZ published a position paper titled Perspectives with Latin America and the Caribbean for working together for ecological change and social justice.

Asia: Even though the SSA and MENA regions are priorities for the BMZ, Germany allocates the second-largest shares of its bilateral ODA to Asia (excluding the Middle East). In Asia, the BMZ works mostly with regionally influential MICs including Indonesia, China, India, and Viet Nam. The BMZ’s work in these countries seeks to address global issues such as climate change by leveraging their large populations, economic strength, and wealth of resources such as tropical forests, biodiversity, and commodities.

The BMZ published a paper in December 2023 on the development cooperation with Asia and focuses on the promotion of sustainable economic development with a focus on the transition to a green economy and the creation of employment prospects. Employment of women and disadvantaged population groups is also promoted.

Southeastern Europe, Eastern Europe, and Southern Caucasus: The BMZ’s work focuses on promoting political stability, economic prosperity, and a shared foundation of European values. Within the region, Ukraine received the largest share of ODA, making it Germany’s second-largest bilateral ODA recipient in 2023. This support is aimed at advancing the country’s alignment with the EU, as well as the sustainable, inclusive, and conflict-sensitive reconstruction of the country.

Budget

What are the details of Germany's ODA budget?

Germany’s ODA is sourced from the budgets of different ministries. The largest share of ODA comes from the BMZ, totaling 36% in 2024. The AA, which manages most of the funding for humanitarian assistance and UN peace missions, accounts for 13% of ODA. 14% is the ODA- eligible share of Germany's EU budget, and 9% come from other ministries incl. the BMFTR and the BMG.

A two-way coalition between the CDU/CSU and SPD formed in May 2025, following the collapse of the previous government, triggered by disagreements over the 2025 budget. Consequently, the 2025 budget was passed with over a nine-month delay in September 2025. Before the formation of the new government was completed, the CDU/CSU and SPD, with support from the Green Party, secured parliamentary approval to reform the constitutionally enshrined debt brake, a fiscal rule that had limited additional government loans to 0.35% of GDP to ensure sustainable financing. This reform allows for increased defense spending, a EUR500 billion ( US$ 543.5 billion) infrastructure investment package, including EUR100 billion ( US$108.7 billion) for climate-related projects, and increased borrowing flexibility for federal states. The agreement was reached prior to the dissolution of the old parliament, as the required two-thirds majority would likely not have been achieved under the new parliamentary composition.

In 2025, the overall budget was slightly increased, with the BMZ’s 2025 budget cut to EUR10.3 billion ( US$11.2 billion), which is EUR910 million ( US$ 989 million) less than was allocated to the BMZ in 2024.

Despite the delayed budgetary process for 2025, Germany made a pledge at the 21^st replenishment of IDA. The government initially committed EUR1.6 billion ( US$1.7 billion), matching its pledge to the previous funding round. However, the 2026 draft budget proposes a 10% reduction of EUR162 million ( US$176 million). At the World Health Summit 2025, the German government pledged EUR1 billion ( US$ 1.1 billion) to the Global Fund for the 2026-2028 period, including a EUR100 million ( US$ 109 million) for debt swaps under the Global Fund’s Debt2Health mechanism. The pledge represents a 23% cut of EUR300 million ( US$326 million) from the previous replenishment.

On July 30, 2025, the German government published its 2026 draft budget. The 2026 draft budget outlined a EUR9.9 billion ( US$10.8 billion) allocation for the BMZ, a 4% decrease of EUR362 million ( US$393.5million) compared to the 2025 budget. The department's budget is planned to shrink further to EUR9.3 billion ( US$10.1 billion) by 2028. This is estimated to correspond to a fall in ODA/GNI from 0.56% of GNI in 2025 to 0.52% in 2026, and further to 0.43% by 2029. The final vote on the 2026 budget will be made by Parliament in November 2025.

The BMZ’s budget is composed of different budget envelopes, including:

• The 'Bilateral development cooperation' envelope includes budget lines for major regions and is broken down by annual allocations to specific country programs;
• The 'European development cooperation, UN, and other international organizations' envelope includes budget lines for multilateral organizations related to climate change and biodiversity, global health multilaterals, and various UN programs; and
• The 'Multilateral development banks' envelope includes contributions to the World Bank Group, as well as the AfDB and ADB.

How does Germany determine its ODA budget?

The German fiscal year corresponds to the calendar year.