View of Yerevan, Armenia

    Armenia

    Armenia is situated in a region marked by geopolitical tensions, between Europe, Russia and the Middle East. While the country is working to achieve reforms, modernise its economy and increase alignment with the European Union (EU), unresolved conflicts, social inequality and climate change are affecting its prospects for the future. This is where German development cooperation comes in. It promotes stability, opens up opportunities for the future and contributes to peace and stability in Europe's eastern neighbourhood.

    Cover: Strategy for development cooperation with transformation partners in South-Eastern and Eastern Europe and the Southern Caucasus

    Strategy for development cooperation with transformation partners in South-Eastern and Eastern Europe and the Southern Caucasus

    PDF | 12/2023 | 719 KB, 9 Pages | Accessible
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    Armenia plays a key role in the EU's neighbourhood. The country is situated in the southern Caucasus, between Europe, Russia and the Middle East, giving it strategic importance. Political and economic stability in Armenia is hence not only important for the country itself but for the entire region. It is a factor in containing conflicts and strengthening the European security architecture – especially against the backdrop of ongoing tensions and peace efforts between Armenia and Azerbaijan.

    In addition, the country is driving efforts to implement its partnership agreement with the European Union and is actively involved in the Eastern Partnership. Through the Eastern Partnership, the EU works with its neighbours in eastern Europe and the southern Caucasus to achieve closer political association and gradually grow economic integration.

    German development cooperation with Armenia

    The Federal Ministry for Economic Cooperation and Development (BMZ) offered to resume bilateral development cooperation with Armenia in 2022. In November 2023, the first bilateral government negotiations on development cooperation were held in Yerevan. Germany has since been one of the largest donors to the country. German activities are supporting selected processes for political and economic transformation and the country's alignment with the EU, and promoting democracy, human rights, the rule of law, a free market economy and climate protection by helping to expand renewable energies.

    At the government negotiations in November 2025, Germany pledged to make available a total of 152 million euros in funding. Of this sum, 134 million euros was allocated to Financial Cooperation projects and 18 million euros to Technical Cooperation programmes.

    German-Armenian cooperation is focused on two core areas with two areas of intervention each, alongside cooperation outside the agreed core areas.

    • Core area: Climate and energy, just transition
      Areas of intervention: renewable energies/energy efficiency, sustainable urban development (including water and wastewater)
    • Core area: Sustainable economic development, training and employment
      Areas of intervention: technical and vocational education and training, private sector and financial sector development
    • Cooperation outside the agreed core areas: Peaceful and inclusive societies
      Area of intervention: good governance

    In addition, gender equality is a topic that is mainstreamed across all areas of intervention. GIZ runs a global programme “Feminism in Action for Structural Transformation” which supports efforts to develop strategies for Armenia. Under the Special Initiative Displaced Persons and Host Countries, measures are being implemented to strengthen the rights and representation of marginalised, displaced and conflict-affected women in Armenia and Azerbaijan.

    Foto of a girl and a boy looking in direction of the camera.

    Core area “Sustainable economic development, training and employment” Digital skills for future prospects

    Armenia's economy is growing; nevertheless, structural weaknesses are curbing the opportunities of large sections of the population. High levels of unemployment, informal employment and persisting poverty levels are affecting young people in particular, and fuelling social tensions. Targeted projects are supporting the country in its efforts to make its economy more sustainable, resilient and fit for the future.

    A photo of purple flowers in front of a blue lake.

    Core area “Climate and energy, just transition”
     Achieving water security, reducing climate risks

    Armenia is seeing periods of drought increase, with water getting scarcer and infrastructure suffering under extreme weather. The country's dependence on imported gas and weather-dependent energy sources such as hydropower is making its economy vulnerable, and air pollution is an additional burden on the population. That is why Germany is supporting measures to make Armenia's energy supply more sustainable and independent, improve water and wastewater systems and strengthen protected areas.

    Foto fo a statue in Yerevan, Armenia.

    Cooperation outside the agreed core areas: good governance
     Strengthening state and society

    Armenia's public administration is facing great challenges: services are often inefficient, rarely available online and hard to access, especially in rural areas. Structural deficits in the governance system and too little tangible progress in combatting corruption are hindering trust and the ability to reform. That is why the BMZ's projects are supporting efforts to modernise the administration, build capacities and strengthen civil society.

    In comparison: SDG trends for Germany

    Further information

    As at: 27/05/2026