Sustainable and inclusive growth in Kosovo

Context

The Sustainable and inclusive growth in Kosovo project supports Kosovo’s efforts to build a greener, fairer and more innovative economy. It reflects the commitment of both the government of Kosovo and the Grand Duchy of Luxembourg to strengthen their partnership in development cooperation. This project falls under a new cooperation area aligned with the United Nations’ Sustainable Development Goal 8, which promotes sustained and inclusive economic growth, full and productive employment, and decent work for all.

Kosovo sees this as an opportunity to advance in key strategic directions – such as the green transition, digital transformation, innovation and cybersecurity – while encouraging collaboration among institutions and with the private sector. The overall goal of the project is to contribute to sustainable economic growth by supporting innovation, inclusion and social progress in a way that benefits all citizens.

Objectives and stakeholders

The project’s specific objective is to encourage innovation and attract local and foreign investment by fostering a more secure and transparent environment. 

The project is structured around four main components, each managed by a dedicated national institution:

• supporting the establishment of the Sovereign Fund of the Republic of Kosovo: this fund is designed to increase public investment capacity, improve financial stability and attract foreign investors. Managed by the Office of the Prime Minister, it plays a key role in building long-term fiscal strength and economic resilience;
• strengthening cybersecurity: as Kosovo continues its digital transformation and sees rapid growth in the information and communication technology (ICT) sector, the need to protect data and digital infrastructure becomes increasingly urgent. This component, led by the Ministry of Internal Affairs, boosts the cybersecurity skills and readiness of public servants and helps secure key government systems against cyber threats;
• enhancing institutional support for the innovation ecosystem: entrepreneurs and businesses in Kosovo often face challenges in scaling up and reaching international markets. This component, implemented by the Ministry of Industry, Entrepreneurship and Trade, supports innovation through the establishment of an innovation fund and partnerships, helping companies add value to their products and services and become more competitive in international markets;
• enhancing digital democracy: Kosovo’s Parliament has replaced its outdated electronic voting system to improve voting transparency and public trust. This digital upgrade not only strengthens institutional accountability but also removes a key technical barrier on Kosovo’s path to EU integration.

Kosovo’s strong human capital – particularly its young, tech-savvy population – and its vibrant ICT sector offer great potential for growth. The project encourages collaboration between public institutions and private businesses, and creates space for stronger partnerships with Luxembourg, especially in innovation, digitalisation and entrepreneurship.

Beneficiaries

By focusing on inclusion, digital progress and sustainability, the project lays the groundwork for Kosovo to compete in a global economy while improving the daily lives and opportunities of all its people.