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 80 to 90 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, refugee and migration issues, vocational training, as well as renewable energies and the protection of natural resources. 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). Bilateral trade with Mozambique amounted to some 214 million euro in 2022 with aluminium being Mozambique’s main export to Germany. In 2022, German exports to Mozambique were worth 49.7 million euro, with Mozambican exports to Germany valued at 164.3 million euro. In addition, many imports and exports are conducted through the Netherlands and South Africa.