The German Federal Ministry for Economic Cooperation and Development (BMZ) is withdrawing its funding for its two Investment and Technology Promotion Offices (ITPOs). These offices, located in Bonn and Berlin, were originally established in 2016 following an agreement with the United Nations Industrial Development Organization (UNIDO). Their mandate was to assist investors and companies with technology transfer into developing and emerging countries.
According to a letter from the BMZ to UNIDO, which was reported by “The World”, the funding for these programs is set to conclude at the end of 2026, marking the termination of the agreement. The ministry also reassured the public that the German government remains committed to collaborating with and supporting UNIDO through other projects and programs, utilizing both mandatory and voluntary contributions, as well as at the political level.
The BMZ confirmed the decision to the press. The ministry’s press office stated, “The information is correct. After a decade of funding by the BMZ, the ITPO-Germany project will end at the close of 2026”. The reason cited for the decision was “particularly the background of increasingly limited budgetary resources for the BMZ”. Financial figures indicate that ITPO costs were €1.7 million in 2024 and are projected to reach €1.8 million in 2025.
The closure has already sparked international apprehension. The South African lobby group, African Energy Chamber, criticized the move, noting that since Africa is keen to expand its investments in energy and industry, the potential withdrawal of the UNIDO-ITPO in Germany could weaken the proven link between projects and capital.