“We’ve been preparing for exactly this moment,” German-Venezuelan businessman Thilo Schmitz tells DW.
“I’m certain that we’ll do very good business over the next five years,” the 59-year-old Caracas-born entrepreneur predicts. By “this moment” he means Venezuela’s reopening after years of decline. Schmitz believes the country’s trajectory changed after United States special forces abducted Venezuelan President Nicolas Maduro on January 3. Although interim President Delcy Rodriguez, Maduro’s former deputy, continues to handle official business, Schmitz says he is convinced the US is calling the economic shots.
In late January Venezuela — which holds the world’s largest oil reserves — opened its oil sector to foreign investment. After two decades of state control, the government is now trying to attract private companies that can bring expertise and capital. American delegations have been visiting Caracas regularly, and international financial institutions such as the World Bank and the International Monetary Fund have resumed relations with the country.
Schmitz, who spoke to DW in the aftermath of Maduro’s ouster, was one of the few local business owners to comment publicly. He took over his father’s stationery company in 1996 and since 2022 has expanded into gluten-free foods and German medical technology. His firm employs about 50 people and reached revenues of roughly $45 million (€38 million) in its best years. He says people have “huge expectations” and that there’s renewed willingness to take risks: “We’re getting small orders and inquiries.”
But the business landscape is complicated. The German-Venezuelan Chamber of Commerce and Industry (CAVENAL) estimates only about ten German companies remain active in Venezuela today. For decades Venezuela served as a gateway for German industry into South America, seen as relatively stable and offering a good quality of life compared with neighbors. That changed after Hugo Chávez rose to power in 1998 and accelerated under Nicolás Maduro from 2013, prompting many firms to leave amid growing US sanctions.
Several major German companies did not respond to DW’s queries; Siemens and Linde were silent, and Bosch confirmed it no longer does business in Venezuela. A German entrepreneur working in rural Venezuela, speaking on condition of anonymity, warned that removing Maduro is “only cut off the head of the Hydra; the old ruling elite is still there.” He said interim President Delcy Rodriguez faces a critical phase and must show revenues benefit the population, or protests could return and emigrants will not come back.
The scale of Venezuela’s collapse is stark. Mismanagement under socialist governments precipitated a mass exodus: an estimated eight million Venezuelans have left, including many highly educated professionals. About 28 million remain, and the economy has suffered dramatic shrinkage with inflation soaring to over 400% in 2024.
Schmitz, who witnessed the decline firsthand, says “everything in this country needs to be rebuilt.” He highlights public hospitals, which he says have seen almost no investment in a decade, as an area of significant potential for his company’s medical-technology business. He acknowledges legal uncertainty persists without new elections but senses optimism: people are willing to take risks again.
Others are more cautious. The anonymous German entrepreneur points to daily operational problems that persist: frequent power outages, fuel shortages and long lines at gas stations. These practical difficulties make running and scaling businesses hard even if political conditions improve.
Energy and raw materials are sectors where some see immediate opportunities. Venezuelan engineer Alvaro Yaber says German firms could play a big role, noting Siemens’ historical experience with power grids and recent negotiations between Venezuela’s transitional government and Siemens and General Electric about modernizing the electricity system. Yaber argues a long-term strategy for electricity is essential because energy can drive reconstruction and growth. He estimates rebuilding a sustainable power grid will require $30–50 billion in investment over the coming years.
Key questions remain: will banks start lending again, will skilled workers return from exile, and can political stability be guaranteed? For Schmitz, the shortage of skilled labor is a major constraint on economic recovery. Exiled Venezuelans—many of whom left with valuable skills—remain largely absent, and their return is seen as crucial for rebuilding.
In the short term, a handful of local companies are cautiously optimistic and positioning themselves for what could be years of reconstruction. But the success of any economic turnaround will depend on sustained investment, reliable public services, legal predictability, and whether the transitional authorities can translate international engagement into tangible improvements for Venezuelans.
This article was originally written in German.