Venezuela was once a key destination for German industry. However, after nearly 30 years of socialism, only a handful of German companies remain active there. That could change if the nation opens up to foreign firms.
German-Venezuelan businessman Thilo Schmitz told DW: "We've been preparing for exactly this moment. I'm certain that we'll do very good business over the next five years." The 59-year-old Caracas-born entrepreneur refers to Venezuela's reopening after years of decline.
Venezuela has been changing rapidly since US special forces abducted President Nicolas Maduro on January 3. Although interim President Delcy Rodriguez continues to handle official business, Schmitz is convinced the US is pulling the strings: "On an economic level, the Americans are calling all the shots."
In late January, Venezuela opened the oil sector to foreign investment. After two decades of state control, efforts are now underway to attract private companies. American delegations visit Caracas regularly. The World Bank and IMF have also resumed relations with Venezuela.
Schmitz, who took over his father's stationery company in 1996, now also deals in gluten-free foods and medical technology from Germany. The firm has 50 employees, with revenue reaching $45 million in its best years.
The German-Venezuelan Chamber of Commerce and Industry (CAVENAL) estimates only ten German companies are present in Venezuela today. For many years, the country was seen as a gateway for German industry to South America. However, many companies began leaving after Hugo Chavez took office in 1998.
Among the few companies that stayed, there is renewed hope for economic recovery, but they are reluctant to talk. Siemens and Linde did not respond to DW's request. Bosch confirmed it no longer conducts business in Venezuela.
A German entrepreneur, who spoke on condition of anonymity, said: "In principle, Donald Trump has only cut off the head of the Hydra; the old ruling elite is still there." He added that interim President Delcy Rodriguez knows she cannot continue this way.
Mismanagement under socialist governments has taken a devastating toll. An estimated eight million Venezuelans have left the country, including many highly educated people. Inflation spiraled to over 400% in 2024.
Schmitz believes the economy can only improve: "Everything in this country needs to be rebuilt." Public hospitals have received no investment in over ten years — a sector with significant growth potential.
Venezuelan engineer Alvaro Yaber predicts German companies could do good business in energy and raw materials. Siemens and General Electric are reportedly negotiating to modernize the power grid. Building a sustainable grid will require $30-50 billion in investments.
Schmitz emphasizes the importance of banks granting loans again and skilled workers returning. The shortage of skilled labor remains a key challenge for the country's economic development.
Source: www.dw.com