LuxAid Business 4 Impact

Context

Convinced that innovations developed by businesses can help improve living conditions in developing countries, the Luxembourg government has launched three private sector engagement funds: the Business Partnership Facility (BPF), the LuxAid Challenge Fund and the LuxAid Demonstration Fund. These tools aim to accelerate the impact of innovative solutions spearheaded by companies to tackle societal and environmental challenges in the target countries.

Objectives

Many companies are deploying innovative solutions, products, services or approaches to tackle major challenges faced in developing countries.

Through calls for proposals or active scouting of innovative solutions, the engagement funds with the private sector aim to identify and support these initiatives, mobilising the private sector's capacity for innovation to improve access to education, water and basic services, ensure food security, combat poverty, etc.

The close collaboration established with the private sector through the three funds thus aims to promote sustainable and inclusive growth in developing countries.

Beneficiaries

The project is aimed at different targets depending on the fund concerned.

The Business Partnership Facility targets companies in Luxembourg or the European Union, regardless of their level of maturity, wishing to deploy their innovative solutions in developing countries with the aim of improving the living conditions of local populations.

The LuxAid Challenge Fund is aimed at early-stage companies established in the priority countries of Luxembourg's Development Cooperation that have already tested their innovative product or service addressing a major societal challenge in their country and need financial support to accelerate its impact.

The LuxAid Demonstration Fund is intended for companies based in Kosovo, Rwanda and Senegal. More mature, growing and offering an innovative solution with a proven impact and business model, these companies receive support to scale up their initiatives and thus amplify the positive impact of their activities.

Stakeholders

As part of the Business Partnership Facility, close collaboration has been established with Luxembourg's organisations supporting the entrepreneurial ecosystem:

• the Chamber of Commerce promotes the BPF among its members. One of its representatives also participates in the project selection process;
• Luxinnovation also promotes the BPF within its network and provides tailored guidance to companies preparing their detailed proposals for BPF calls for projects. It may also help identifiy potential Luxembourg partners interested in innovative initiatives led by companies in developing countries;
• a representative from the Luxembourg Ministry of the Economy participates in the selection of BPF projects.

In countries where editions of the LuxAid Challenge Fund or LuxAid Demonstration Fund are launched, actors from the entrepreneurial ecosystem and institutional partners of the country offices are mobilised to ensure effective dissemination of information to potential applicants.