Germany’s Ambassador Outlines Trade, Investment and Compensation Progress in Zimbabwe

Germany’s ambassador Christoph Retzlaff outlines Zimbabwe–EU trade growth, German investment levels and progress on BIPPA compensation as key to restoring investor confidence (image source)

Germany’s Ambassador to Zimbabwe, Christoph Retzlaff, has highlighted recent developments in bilateral economic relations, including the start of compensation payments to foreign investors affected by the 2000 farm expropriations under Bilateral Investment Promotion and Protection Agreements (BIPPAs). In an interview, Ambassador Retzlaff framed the compensation process and broader reforms as essential steps toward restoring investor confidence and unlocking foreign direct investment.

Retzlaff, who took up his post in late 2025, said his early impressions of Zimbabwe were shaped by the country’s cultural heritage and hospitality, singling out Great Zimbabwe as a standout destination. He described the bilateral trade relationship as growing: EU–Zimbabwe trade reached about €900 million in 2025, with Zimbabwe enjoying a positive trade balance. Trade between Germany and Zimbabwe was €175 million in 2024, and Retzlaff said there is significant untapped potential across multiple sectors.

A central theme of the ambassador’s remarks was the importance of stability, transparency and predictability for investment. He argued that German companies are actively seeking to diversify supply chains and reduce dependencies, creating opportunities for African partners. Retzlaff pointed to the upcoming German Africa Business Summit in Accra in October 2026 as a platform to connect German business interests with African markets, and urged Zimbabwe to position itself to attract such interest.

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On investment flows, Retzlaff said German direct investment in Zimbabwe currently stands at €18 million, concentrated mainly in horticulture and agriculture. He acknowledged this is modest compared with historical levels and stressed that rebuilding investor confidence will require consistent policy signals and improved governance. Germany’s development cooperation portfolio in Zimbabwe totals €9 million, with an annual programme of €4 million focused on renewable energy and good governance.

The ambassador confirmed that Zimbabwe began compensation payments in early 2025 under BIPPAs for farmers expropriated in 2000, noting that about 40 German farmers were affected. He described the payments as part of a “Structured Dialogue” led by the African Development Bank and said the government aims to complete compensation by 2028. Retzlaff framed the move as a milestone that could help normalise relations with Western partners and facilitate access to finance and markets.

Retzlaff acknowledged macro-political and economic volatility remains a constraint for investors, but he emphasised that German businesses are looking for predictable legal and regulatory frameworks. He encouraged Zimbabwe to pursue reforms that enhance transparency, protect property rights and streamline investment procedures. If such conditions are met, he said, German firms already active across Africa would be more inclined to expand their presence in Zimbabwe. The ambassador’s comments underline a pragmatic approach: compensation and policy clarity are necessary but not sufficient; sustained engagement, institutional reforms and credible implementation will determine whether Zimbabwe can translate recent diplomatic progress into durable investment and trade gains.