Over 1 million euros to support high-impact business innovations in Kosovo

After the success of the first edition in 2025, the Luxembourg Development Cooperation is launching a new call for proposals aimed at well-established businesses based in Kosovo. The LuxAid Demonstration Fund (LDF) seeks to accelerate the growth and impact of innovative digital and green solutions. Selected projects will receive up to EUR 350,000 in co-financing. Candidates are invited to submit their applications by 6 February 2026.

The Luxembourg Cooperation is committed to tackling major societal challenges in Kosovo. The ultimate goal of the call for proposals is to foster a more competitive private sector that drives sustainable growth and prosperity in Kosovo.

Therefore, it welcomes innovations in the following sectors : 

Digital innovation

• companies providing digital tools (AI, data analytics, automation, fintech, e-commerce and cybersecurity) to drive growth or export;
• export-ready ICT service providers and outsourcing firms scaling their digital innovations and expanding international partnerships;
• skills-to-jobs initiatives connecting digital and green skills with employment opportunities in emerging industries;
• HealthTech and e-health solutions focused on cardiovascular care.

Green innovation

• energy efficiency and clean energy transition initiatives in business operations;
• circular economy and waste valorisation models to reduce resource use and boost recycling;
• sustainable agribusiness and circular agri-processing, turning by-products into new products and promoting resource-efficient models;
• climate adaptation solutions for water efficiency and resource security.

The LuxAid Demonstration Fund targets formal commercial or cooperative companies meeting the following criteria : 

• registered in Kosovo before 1 November 2022;
• employing at least 5 individuals;
• with a turnover below EUR 50 million;
• deploying an innovative product or service that has already been tested on the market, with proven revenue generation (for at least one year) and impact on societal challenges;
• proposing a one- to two-year business project built around their innovation;
• able to co-finance at least 50% of the project costs.

Co-financing ranging from EUR 100,000 to EUR 350,000 is provided to support scaling up their innovative solution, extending its reach and impact for the benefit of local populations.

As part of this call for proposals, interested enterprises are invited to submit their applications via the submission platform by 6 February 2026. Ten shortlisted candidates will benefit from coaching to strengthen their proposal and prepare for pitching. They will then be invited to pitch in front of the selection committee in June 2026. The final decision is expected by July 2026, with three to four projects selected.

An information webinar is scheduled on 14 January 2026 at 10 am. Two onsite Q&A/info session will be hold on 21 January at 2 pm and 28 January at 10 am.
 

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