The German Democratic Republic (GDR) established diplomatic relations with Mozambique in 1975, the year it gained independence, with the Federal Republic of Germany following suit in 1976. The Agreement regarding Technical Cooperation has been in force since 1985, the Agreement on Cultural Cooperation since 1997. Many Mozambicans studied in the GDR and around 20,000 people from the country were employed there as contract workers. The large number of high-level visits testifies to the amicable nature of bilateral relations. Germany has provided wide-ranging support to the peace, reconciliation and stabilisation process in Mozambique.

Development cooperation is a priority in German-Mozambican relations, with Germany currently providing the country with some 79 to 80 million euro per year. In total, Mozambique has received around 1.5 billion euro in bilateral development cooperation funding since the 1980s. This cooperation focuses on good governance, social peace, sustainable economic development, climate and energy, as well as education and protecting biodiversity. Mozambique also benefits from funding Germany contributes to European Union support programmes and multilateral institutions.

Mozambique is Germany’s third most important trading partner in the Southern African Development Community (SADC). Mozambique Business Days are held regularly in Germany and German business people frequently visit the country.

Bilateral trade with Mozambique amounted to 214 million euro in 2021 with aluminium being Mozambique’s main export to Germany. From 2013 onwards, German exports to Mozambique increased significantly before declining again during the years of the economic and financial crisis. In 2018, German exports to Mozambique rose considerably once more. In 2021, this figure stood at 52.4 million euro, with Mozambican exports to Germany valued at 162.2 million euro.