Last updated in March 2018
Diplomatic relations between the Federal Republic of Germany and the Republic of Honduras were established on 20 January 1960. Relations have traditionally been friendly. The emergency relief and reconstruction assistance provided by the German Government and private German donors in the aftermath of the Hurricane Mitch disaster in 1998 and Germany’s ongoing bilateral, regional and multilateral development cooperation are greatly appreciated by Honduras.
Following the coup d'état of 28 June 2009 that ousted then President Manuel Zelaya Rosales and the human rights violations against opponents of the military takeover, all contacts and development cooperation with Honduras were temporarily suspended. Since the inauguration of the elected President Porfirio Lobo Sosa in 2010, relations between the two countries have normalised.
Trade between Honduras and Germany is relatively insignificant and subject to strong fluctuations. According to Federal Statistical Office figures, Germany imported goods worth 452 million euros from Honduras in 2017. During the same period, Germany exported goods worth nearly 121.3 million euros to the country.
In 2017, Honduras ranked 79th among suppliers of German imports and 116th among buyers of German exports.
Honduras’ main exports to Germany are coffee (which is also supplied to neighbouring EU countries via Hamburg), fish and citrus fruits. Cocoa, bananas, tobacco and timber are of less significance as exports to Germany. Germany’s main exports to Honduras are industrial facilities, machinery and electrical equipment, chemical and plastic products, engines and motor vehicles, iron goods and sheet metal.
An investment protection and promotion agreement between the two countries, which entered into force on 27 May 1998, has so far resulted in little German direct investment. The German-Honduran Chamber of Commerce and Industry is based in Tegucigalpa.
Honduras is an important partner country of German development cooperation. Since cooperation began in 1961, Germany has made available bilateral funding totalling just under 500 million euros for technical and financial cooperation programmes in Honduras. This makes Germany one of the country’s largest bilateral donors along with the United States, Spain, Japan and Canada. No other EU member state, apart from Spain, has provided more funding to Honduras.
In addition, Germany accounts for around 20 percent of the European Union’s development cooperation with Honduras, as well as contributing its share to the funding provided by international financial institutions such as the World Bank and the Inter-American Development Bank and under United Nations programmes. The European Union’s 2014-2020 programme, worth 235 million euros, focuses on food security, employment and promoting the rule of law.
Honduras receives assistance from some 30 donors. The country’s most important bilateral and multilateral partners (together accounting for some 97 percent of total funding) coordinate their programmes in the framework of the so-called Group of 16 (G16), which Mexico, Brazil and South Korea also joined recently. Along with these traditional donors, Taiwan, Colombia and Chile are also particularly engaged in Honduras.
German development cooperation with Honduras focuses on two priority areas: education and environmental and resource protection (including the sustainable use of natural resources and climate protection). In these areas in particular, Germany is seen as an acknowledged and influential partner in Honduras.
The extensive regional projects focus on the following priority areas: protection of the environment and natural resources, including climate change, sustainable renewable energy and energy efficiency, as well as sustainable economic and financial sector support. The regional projects are also addressing the issue of youth violence prevention, which is key to Honduras’ future development. Important regional partners are the Tegucigalpa-based Central American Bank for Economic Integration (CABEI), the Central American Integration System (SICA) and the Trinational Commission for the Trifinio Plan (CTPT).
At the most recent intergovernmental negotiations in November 2016, Germany pledged a total of 20 million euros for financial and technical cooperation with Honduras. It pledged another 3.5 million euros in late 2017, outside the official schedule of negotiations, for a new project entitled “2030 Agenda Initiative Programme”. The next intergovernmental negotiations will be held in 2018 in Honduras. Negotiations on regional projects with CABEI and SICA took place on 17 and 18 October 2017, with Germany pledging 140 million euros in financial cooperation in the form of loans to CABEI and 19.7 million euros in technical cooperation to SICA.
Germany’s portfolio of ongoing projects and programmes amounts to approximately 160 million euros. On top of this, Germany provides some 26 million euros through Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) third-party funding and EU co-financing. There are 28 seconded German development cooperation experts working in Honduras as well as some 75 local staff.
In addition, a number of German non-governmental development organisations, such as churches, foundations and associations, are active in Honduras.
This text is intended as a source of basic information. It is regularly updated. No liability can be accepted for the accuracy or completeness of its contents.