According to Handelsblatt, the German government has decided to improve the conditions of investment guarantees for a selected number of countries and territories worldwide. If a German company invests in one of the 34 listed countries, the deductible for the company in the event of a loss is halved. In addition, the warranty fees are reduced.

The 34 countries and territories where German businesses receive incentives in investment guarantees by region are Vietnam, India, Indonesia, Malaysia, the Philippines and Thailand (South/Southeast Asia ); Georgia, Kazakhstan and Uzbekistan (Caucasus/Central Asia); Argentina, Brazil, Chile, Colombia and Peru (South America); Albania, Bosnia - Herzegovina, Kosovo, Montenegro, North Macedonia, Serbia and Turkey (Europe); and Egypt, Algeria, Ethiopia, Benin, Côte d'Ivoire, Ghana, Kenya, Morocco, Rwanda, Senegal, Togo, South Africa, Tunisia (Africa).

Investment guarantees are central to Germany's foreign trade policy. When a business invests in a developing or emerging country, the company can apply for an investment guarantee from the German Federal Government. If a business has its investment deducted by another country’s government due to expropriation, war or violation of the law, the German Federal Government will reimburse most of the loss.

As of June 2023, the German Federal Government has guaranteed investments of about EUR30 billion. The improvement of guarantee conditions in the selected countries is intended to encourage businesses to make new investments in other markets that have so far been little or almost untapped.

“We have selected countries that are reliable foreign trade partners and politically stable,” State Secretary Franziska Brantner told Handelsblatt, adding with the new incentives, Germany wants to strongly support the economy with greater resilience to crises.

Source: VOV