Eight bold innovations shaping Kosovo’s future

After months of mobilisation across a vibrant ecosystem and a rigorous selection process, eight groundbreaking projects led by Kosovo-based enterprises have been awarded support through the Luxembourg Challenge Fund (LCF) and the Luxembourg Demonstration Fund (LDF). Launched in late 2024 with a budget of more than EUR 1.5 million, this initiative by the Luxembourg Cooperation aims to help Kosovar businesses tackle long-standing challenges in manufacturing and beyond.

The two funds provide co-financing at different levels, enabling companies at various stages of growth to bring their innovations further. The call for proposals targeted enterprises working on solutions in circularity, digitalisation, or specialisation in manufacturing, as well as new approaches to expanding access to education, healthcare, or mobility services. Depending on the fund and the maturity of the solution, selected businesses could secure between EUR 50,000 and EUR 350,000 in co-financing. To qualify, each project needed to deliver measurable, positive results — improving quality of life and contributing to wider social and economic benefits.

The open call sparked enormous interest:
 

In April, the shortlisted businesses pitched their solutions before a preselection committee comprising representatives from the Luxembourg Ministry of Foreign and European Affairs, Defence, Development Cooperation and Foreign Trade, the Kosovo Ministry of Industry, Entrepreneurship and Trade, the Kosovo Credit Guarantee Fund, and LuxDev.

Following an additional round of due diligence, including on-site visits, 14 candidates were invited to pitch once again during the summer. Finally, eight winners emerged: four supported by the LCF and four by the LDF.

The selected enterprises represent diverse sectors but share a common ambition: to build a more innovative, sustainable and resilient Kosovo. Their projects address pressing challenges — from smarter manufacturing and greener solutions to better access to essential services: 

LuxAid Challenge Fund:

• Qendra Profesionale për Gjithëpërfshirje – Bridging skills for special educational need professionals, blending online and practical modules;
• Dio Smart Ing SH.P.K – An Internet of Things and enterprise resource planning platform to help SMEs monitor and optimise production;
• Talent Management Services LLC (Data4X) – Driving growth with an AI-powered platform providing real-time dashboards for SMEs;
• Mikasoft LLC – An affordable manufacturing execution system software to digitise SMEs operations and gain productivity.

LuxAid Demonstration Fund: 

• Cacttus SH.A. – High-tech poles for smart cities;
• Dijamanti Sh.P.K. – Turning wood waste into panels and heating pellets, for a circular revolution;
• Natyra Sh.P.K. – Expanding recycling services in underserved areas, to drive a cleaner future;
• Inova Sh.P.K. – Producing infrastructure pipes from recycled plastic for a greener industry. 

Congratulations to all eight winners — and a heartfelt thank you to every partner who played a role in this journey. These projects are more than business ventures; they are catalysts for change, driving innovation and resilience across Kosovo.

The LuxAid Challenge Fund and the LuxAid Demonstration Fund are financed by the Grand Duchy of Luxembourg and implemented by LuxDev, the Luxembourg Development Cooperation Agency.