Latin America and the Caribbean

Building on its bilateral experience and national-level achievements, Luxembourg Cooperation has gradually expanded its regional partnerships in Latin America. Today, its initiatives focus on three key priorities: socio-economic integration of women and youth, climate resilience and environmental sustainability, and social cohesion and human rights. These are complemented by two cross-cutting themes: inclusive and innovative finance, and digitalisation for development.

In this framework, LuxDev leads regional projects in environmental sustainability and climate change, impact finance, and women’s entrepreneurship. These efforts are complemented by bilateral projects in Costa Rica and El Salvador, all coordinated from LuxDev’s regional office in Costa Rica and its satellite office in El Salvador.

LuxDev’s efforts in Latin America and the Caribbean are currently concentrated in the countries of the Central American Integration System (SICA), a region characterised by diverse geography and economies. However, poverty and social inequalities remain significant challenges, affecting large segments of the population. Unemployment, a lack of formal job opportunities, and limited access to financial institutions disproportionately impact women, youth, and minority groups.

The region is also highly vulnerable to natural disasters such as hurricanes and earthquakes, which hinder economic and social development. Governance challenges further limit the effectiveness of public policies and erode citizens’ trust. Additionally, economic dependence on raw material exports exposes local economies to global price fluctuations.

Migration remains a major issue. Instability, violence, and climate change force many people to leave their home countries, leading to significant intra-regional migration flows. While the United States remains the primary destination, Costa Rica is becoming an increasingly attractive option for migrants.

LuxDev’s regional initiatives aim to promote sustainable forest management, empower women entrepreneurs, and create an enabling environment for access to tailored financial products for small and medium-sized enterprises (SMEs) led by women. These efforts directly address regional challenges related to gender inequality and forest conservation, which are critical for climate change mitigation and adaptation.