LuxDev actively supports private sector engagement in its interventions, recognising its crucial role in driving economic growth and job creation.
Introduction
Luxembourg Cooperation Strategy, "The Road to 2030", promotes multi-stakeholder partnerships.
The involvement of the private sector in development cooperation is key to ensuring sustainable success. By driving economic growth, creating jobs, and fostering innovation, businesses play a vital role in development. Partnering with the private sector helps mobilise additional resources and enhances the effectiveness of development projects.
By engaging businesses in its initiatives, LuxDev fosters inclusive and sustainable growth that benefits everyone, ensuring a fair distribution of development gains within communities. This commitment to private sector collaboration directly supports several Sustainable Development Goals (SDGs), particularly SDG 8 (decent work and economic growth), SDG 9 (industry, innovation, and infrastructure) and SDG 17 (partnerships).
© Rashik MAHARJAN
Project to develop ecological bricks with low production costs in Nepal, supported by the Business Partnership Facility, a fund for engagement with the private sector initiated by Luxembourg Development Cooperation.
Collaborating with the private sector for greater impact
LuxDev actively supports private sector engagement, recognising its key role in driving economic growth and job creation. By forming partnerships with businesses of all sizes — from large corporations to social enterprises and SMEs — we can leverage their expertise, financial resources, market knowledge, and ability to sustain activities through sustainable business models.
We tap into these unique strengths to maximise the impact of our initiatives and foster innovation that directly addresses development challenges. Moving beyond a traditional client-supplier relationship, LuxDev strives for strategic partnerships where ongoing dialogue shapes meaningful and effective engagement.
A win-win relationship
To achieve this, we strive to create open, transparent, and constructive communication with businesses. This ensures that communities in partner countries benefit from innovative solutions that meet their needs while providing companies with opportunities to explore new markets or align with shareholder expectations — especially for impact-driven businesses.
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In addition, LuxDev works to create a business-friendly environment and encourage private investment. This includes close collaboration with ministries and government agencies in partner countries to develop policies and regulatory frameworks that support private sector engagement.
Furthermore, we support local entrepreneurship ecosystems by helping micro, small, and medium-sized enterprises enhance their competitiveness, strengthen their capacity for innovation, and contribute to local economic development.