Kosovo

Luxembourg’s development cooperation with Kosovo began in the early 2000s, shortly after the conflict in the region. Initially focused on humanitarian aid and reconstruction, it gradually shifted towards sustainable development projects. LuxDev established a permanent office in Pristina in 2009. In April 2013, Kosovo and Luxembourg signed their first bilateral agreement and a memorandum of understanding, outlining key areas of collaboration: healthcare, vocational and technical training, and water and sanitation.

After 20 years of close cooperation with sectoral ministries and sustained engagement in social development, a third bilateral agreement and a renewed memorandum of understanding were signed in July 2022. Covering the period 2023–2025, these agreements reflect both countries' commitment to diversifying cooperation, integrating the private sector, and fostering research. LuxDev’s support in Kosovo focuses on implementing key reforms and preparing the country for EU accession..

Since gaining independence in 2008, Kosovo has made significant economic progress, with a 50% increase in per capita income and a 35% reduction in poverty. However, several challenges remain to ensure sustainable growth.

The healthcare sector faces outdated infrastructure and a shortage of qualified personnel, limiting the quality of medical services.

Unemployment remains high, with youth and women disproportionately affected. 

The vocational training system does not fully align with labour market needs, requiring reforms to equip young people with practical skills and better connect them with the private sector. Supporting entrepreneurship and small and medium-sized enterprises is also crucial for job creation.

Kosovo’s energy sector relies heavily on fossil fuels, with 90% of electricity production still dependent on them. 

Meanwhile, although civil society is active, it faces financial constraints and limited political participation opportunities.

Luxembourg provides both technical and financial assistance in these key areas, working closely with local partners under LuxDev’s guidance.

LuxDev’s initiatives in Kosovo directly address the country’s pressing challenges.