LuxAid Business 4 Impact

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 identifies 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 funds, creating a more flexible and richer private sector engagement offering for sustainable development.

• The Business Partnership Facility aims to initiate commercially viable projects between businesses based in Luxembourg or the European Union, and their partners established in developing countries. Through innovative co-financed projects, the BPF addresses significant societal challenges contributing to the development of the partner country. Enterprises established in Luxembourg or the European Union can apply to the open call for proposals year-round. Selection occurs twice a year, analysing applications received by the end of April and October, respectively. Selected projects receive up to EUR 200,000 in co-financing, covering a maximum of 50% of the total project cost. Innovations in all sectors are welcomed, as long as they contribute to the SDGs.
• The LuxAid Challenge Fund targets impactful young enterprises in countries where Luxembourg’s Development Cooperation is active.  It is designed to accelerate innovative solutions with high impact potential to enhance living conditions and safeguard the environment in these countries. The LuxAid Challenge Fund offers co-financing of up to EUR 140,000 representing a maximum of 70% of the total project costs. Calls for proposals are regularly opened in target countries, focusing on themes aligned to the strategic priorities of Luxembourg’s Development Cooperation in those countries.

• The LuxAid Demonstration Fund aims to give a boost to innovative entrepreneurial solutions that have already demonstrated their impact and proven their effectiveness. It focuses on initiatives implemented in three priority countries: Kosovo, Rwanda, and Senegal. It enables enterprises to scale, broaden their reach and amplify their impact. Active research for innovations is conducted through mapping entrepreneurial solutions already identified by partners in these countries. In some contexts, a call for proposals may be opened. Enterprises are also encouraged to submit their solutions directly via the website.