The people of Germany and Nicaragua have enjoyed a close friendship for decades. This goes back to the solidarity movements in both East and West Germany in the 1980s, when civil war raged in Nicaragua following the Sandinista revolution. For many years, understanding between the two countries was fostered by some thirty town twinning partnerships and a large number of private initiatives in Germany (Nicaragua Associations), as well as the German-Nicaraguan Culture Initiative in Managua (Iniciativa Cultural Alemana Nicaragüense – ICAN). Currently, civil society cooperation is severely hampered by a continuing series of repressive laws and measures on the part of the Nicaraguan Government.

There are close historical ties between the two countries dating back to the emigration of Germans to Nicaragua in the 19^th century. The German influence can be felt even today, particularly in the coffee-growing region in the north. Around 1000 Germans live in Nicaragua and a few hundred Nicaraguan nationals live in Germany.

Active bilateral institutions in Nicaragua include a German School as well as the German Embassy. The bilingual German School in Managua is considered to be one of the best schools in the country; through its alumni, its influence can be felt in all areas of Nicaraguan society. The bilateral Chamber of Commerce was closed by the government in August 2024.

The companies Ritter Sport, Dräxlmaier and Villiger are among the most important German investors in Nicaragua. Following the COVID-19 pandemic and despite the ongoing political crisis, more German tourists are once again discovering the land of lakes and volcanoes as a holiday destination.

With aggregate development cooperation worth around one billion euro, Germany has been one of the country’s principal bilateral donors to date. Technical cooperation ceased at the end of 2023; Kreditanstalt für Wiederaufbau (KfW) is finalising a project focused on water.

In light of the continuing repression, the German Government and the international community are working in multilateral forums for the restoration of the rule of law and of civil liberties, as well as for the release of political prisoners.