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MAE/023
Private sector partnership instruments

Information

Geographical area
Non-specified

Sector
Others

Implementation period
January 2023 - December 2028
Total duration
72 months

Total budget
25,000,000 EUR
Contribution breakdown
  • Luxembourg Government
    25,000,000 EUR

Recognising the essential role that the private sector plays in tackling societal challenges in developing countries and achieving the Sustainable Development Goals (SDGs), the Luxembourg Ministry of Foreign and European Affairs mandated LuxDev to launch a new private sector engagement project in February 2023.

Through this project, LuxDev will identify innovative solutions spearheaded by private sector actors that contribute to the achievement of Luxembourg Cooperation objectives. The project builds on the existing Business Partnership Facility and integrates other two distinct, yet complementary co-financing instruments, creating a more flexible and richer private sector engagement offering for sustainable development.

The first instrument, the Business Partnership Facility, supports economic partnerships between Luxembourgish or European private companies and organisations in the South (list of countries available here) targeting sustainable business projects in developing countries. The partnerships can support transfers of know-how and capacity building, technology transfers, proof of concept or a feasibility study for a new sustainable business opportunity that drive the implementation of the SDGs. The existing portfolio includes over 39 companies and through the project, up to 32 new projects will be supported with co-financing grants of up to 50% of the project cost, capped at 200 000 EUR per project.

The second instrument, LuxAid Challenge Fund, targets innovative and impact-driven companies which have a solution for a specific development challenge identified by the Luxembourg Cooperation in one of the partner or project countries. Through open calls for proposals, companies in these countries can apply for co-financing grants of up to 50% of their project costs, capped at 150 000 EUR per project. LuxAid Challenge Fund will support up to 32 projects providing quasi-experimental and innovative approaches to solve a societal challenge and pilots aimed at demonstrating the cost-benefit of the intervention. Additional non-financial support will be offered, including for monitoring and measuring the positive impact generated.

The third instrument, LuxAid Demonstration Fund, targets companies in three pilot countries, Senegal, Rwanda, and Kosovo. Demonstration Projects will typically focus on scaling an innovative solution that has been tested on a smaller scale and whose impact has been proven. LuxDev offices will actively scout for 24 promising innovations in these countries based on the challenges identified in the bilateral cooperation projects. Similar to the other two instruments, selected companies will benefit from a co-financing grant of up to 50% of their project costs, capped at 350,000 EUR per project.

Latest news

  • Launch of the 11th edition of the Business Partnership FacilityA co-financing to foster innovative business partnerships in developing countries

    Published on 6 March 2024    By Mélanie BUGNON-DIA   FR EN

    The Luxembourg Cooperation kicks off the 11th edition of the Business Partnership Facility (BPF) with a new call for proposals, open to Luxembourgish and European companies. Offering co-financing of up to EUR 200,000, the objective is to support the development of partnerships between European businesses and entities based in a developing country centered on innovative projects that drive commercial success and contribute to the Sustainable Development Goals (SDGs). The BPF opens doors for European players to explore new business opportunities through a development cooperation approach.

    Does your company hold expertise or technology with broad potential? Looking to test your solution through a pilot project or to introduce it to new markets?  The BPF gives you the boost you need to expand internationally and make a meaningful impact.

    Forging economic partnerships to tackle critical societal issues

    Acknowledging the pivotal role of the private sector in achieving the UN's Sustainable Development Goals, Luxembourg's ministry of Foreign and European Affairs, Defence, Development Cooperation and Foreign Trade created the BPF in 2016.

    Over the course of its previous ten editions, this program has backed 41 partnership projects between European companies and entities in over 20 developing countries.

    In the framework of the 11th edition of the BPF, a new call for proposals is now underway.

    The BPF supports initiatives addressing key societal challenges for the development of the partner countries: poverty, food security, climate change, quality education, decent work, economic growth, access to clean water, and more.

    Leveraging the innovation capacity of Luxembourgish businesses

    The BPF targets Luxembourgish or European companies, registered for over 3 years, with a minimum turnover of EUR 500,000, and employing at least 5 people. It offers co-financing of up to 200,000 EUR for the implementation of an innovative and impactful project within a strong partnership with an entity in a developing country (company, NGO, public entity, etc.). Whether it's knowledge transfer, feasibility studies, or piloting new solutions in untapped markets, the goal is to bring the benefit of innovations "Made in Luxembourg" to developing countries.

    Submit your project by April 30th 2024

    Support will cover up to 50% of the project costs (up to a maximum of € 200,000). Interested companies have until April 30th to submit their application.

    The selection process involves multiple steps:

    • candidate companies are invited to complete and submit an application form, downloadable from the bpf.lu website;
    • a shortlist is made based on these forms;
    • selected companies will be invited to submit detailed proposals for the final selection.

    For more info, visit bpf.lu.

    About the BPF

    The BPF is initiated and funded by the Directorate for Development Cooperation and Humanitarian Affairs of the Ministry of Foreign and European Affairs, Defence, Development Cooperation and Foreign Trade and implemented by LuxDev, the Luxembourg Development Cooperation Agency, in partnership with the Chamber of Commerce, Luxinnovation, and the Ministry of the Economy.

  • Lancement du LuxAid Challenge FundLe Luxembourg cofinance les entreprises burkinabè, maliennes et sénégalaises portant une innovation à fort impact sociétal

    Published on 27 November 2023    By Mélanie BUGNON-DIA   FR

    La Coopération luxembourgeoise ouvre un appel à projets destiné aux jeunes entreprises burkinabè, maliennes et sénégalaises. Le cofinancement vise à accélérer la croissance de projets innovants, portés par des start-up, qui contribuent aux enjeux d’apprentissage à distance ou de sécurité alimentaire. Les entreprises sélectionnées bénéficieront d’un soutien allant de 50 000 à 140 000 euros. Les candidats sont invités à déposer leur dossier de candidature avant le 8 janvier 2024.

    LuxAid Challenge Fund est une nouvelle initiative de la Coopération luxembourgeoise qui vise à accélérer les innovations à impact portées par des start-up. À travers cet appel à projets, les entreprises burkinabè, maliennes et sénégalaises développant une solution dans le domaine de la sécurité alimentaire ou de l'apprentissage à distance bénéficieront d’un cofinancement allant de 50 000 à 140 000 euros (environ 30 à 90 millions FCFA).

    Contribuer à des enjeux sociétaux majeurs

    LuxAid Challenge Fund entend de cette manière contribuer à des enjeux sociétaux majeurs dans ces pays. Il s’agit de faciliter l’accès à l’éducation à travers, par exemple, le développement de solutions digitales favorisant l’apprentissage à distance ou mettant en œuvre de nouvelles méthodologies de formation.

    Face aux problèmes d’insécurité alimentaire, le fonds souhaite par ailleurs contribuer au renforcement de la résilience des systèmes alimentaires nationaux et locaux. L’ambition est de soutenir par exemple le développement de la production de protéines alternatives, ou des approches novatrices de production alimentaire, telles que l’hydroponie ou l’agriculture de précision.

    Soutenir des solutions innovantes en phase de démarrage

    LuxAid Challenge Fund cible les entreprises :

    • en phase de démarrage, enregistrées depuis 1 à 5 ans ;
    • avec au moins 2 employés ;
    • qui ont déjà testé leur produit/service sur le marché et ont donc réalisé de premiers revenus commerciaux ;
    • en mesure de cofinancer partiellement leur projet.

    Il soutiendra l'atteinte de leurs objectifs de croissance et d'impact, par exemple à travers un appui financier à la commercialisation, à l’acquisition d’équipements ou au renforcement des équipes. L’objectif est, à terme, d’attirer d'autres capitaux permettant l'expansion des solutions et, ainsi, un impact décuplé au bénéfice des populations locales.

    Ouverture des candidatures jusqu’au 8 janvier

    Dans le cadre de cet appel à projets, les entreprises intéressées sont invitées à remettre leur dossier de candidature sur la plateforme de soumission avant le 8 janvier 2024.

    Les 15 candidats présélectionnés dans chaque pays seront invités à pitcher devant un comité national de sélection en mars prochain. Les porteurs des projets retenus dans les trois pays (Burkina Faso, Mali et Sénégal) se présenteront ensuite devant un comité international de sélection qui choisira les lauréats de l’appel à projets. Ce dernier est pourvu d’une enveloppe d’un million d’euros pour les trois pays de la sous-région.

    Les décisions finales sont attendues en mai 2024.

    Plus d’informations ici

    Le LuxAid Challenge Fund est une initiative financée par la Direction de la coopération au développement et de l'action humanitaire du ministère des Affaires étrangères et européennes, de la Défense, de la Coopération et du Commerce extérieur du Luxembourg, mise en œuvre par LuxDev, l'agence luxembourgeoise pour la Coopération au développement, dans le cadre du projet MAE/023 - Instruments de partenariat avec le secteur privé.

  • The second edition 2023 of the Business Partnership Facility is now open

    Published on 5 September 2023    By Jeanne RENAULD   FR EN
    • Are you a company based in Luxembourg or the European Union?
    • Do you have a commercially viable project idea that contributes to the Sustainable Development Goals?
    • In partnership with an entity in a developing country?

    Apply now for the Business Partnership Facility's (BPF) new call for proposals!

    The BPF aims to encourage partnerships between Luxembourg or European Union companies and partners (companies, administrations, civil society, etc.) based in developing countries. The initiative offers co-financing of up to 50% of the total project budget, with a maximum of EUR 200,000.

    For this new edition, you can submit your application until 31 October 2023

    Download the practical guide and application form here.

    Find out more on the BPF LinkedIn page.  

    The BPF team is also available to answer your questions: bpf@luxdev.lu.

    The MAE/023 - Private sector partnership instruments project is financed by the Grand Duchy of Luxembourg and implemented by LuxDev, the Luxembourg Development Cooperation Agency.