Innovative solutions for impact

The call for proposals is now open!
Submit your application before 08.05.26 !
Business Partnership Facility
Are you a Luxembourg or European Union enterprise with impactful know-how or technology? Keen to leverage your innovation for impactful business partnerships in new markets? Explore new business horizons in developing countries with financial boost from the BPF!
What is the Business Partnership Facility?
Forging entrepreneurial partnerships to tackle key societal challenges
Recognizing the crucial role of the private sector in advancing the United Nations’ Sustainable Development Goals (SDGs), Luxembourg’s Ministry of Foreign and European Affairs, Defence, Development Cooperation, and Foreign Trade set up the BPF in 2016.
This initiative supports projects led by businesses based in Luxembourg or the European Union, and their partners established in a developing country. Through innovative co-financed projects, the BPF addresses significant societal challenges for the partner country’s development, including poverty reduction, food security, climate change mitigation, access to quality education, decent work or clean drinking water, among others.
Biannual calls for proposals offering up to EUR 300,000 in co-financing
Luxembourg and European Union enterprises, along with their partner(s) in a developing country, interested in BPF co-financing, can apply to one of the two annual calls for proposals, with deadlines set at the end of April and the end of October.
Selected projects receive up to EUR 200,000 (EUR 300,000 from 2026 onwards) 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.
Who can benefit from the Business Partnership Facility?
The BPF is open to enterprises registered in Luxembourg or the European Union for more than 3 years, with an annual turnover of at least EUR 500,000 (or three times higher than the co-financing requested), and at least 5 employees (lead partner role).
At minimum, the partnership should consist of:
- A lead partner/project leader: a private-sector enterprise based in Luxembourg/European Union, responsible for submitting the application, coordinating the project on behalf of the other partners, and signing the co-financing agreement and
- A local partner: public or private entity, university, research institute, or civil society player established in a developing country eligible for official development assistance, as defined by the Development Assistance Committee. The local partner is involved and committed from the outset of the project.

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The BPF supports the implementation of innovative business partnerships that address major societal challenges for the partner country’s development.
Co-financed projects can take various forms, including:
- Conducting feasibility studies for innovative projects in the target country;
- Implementing pilot versions of innovative solutions in new markets;
- Structuring production chains or deploying an innovative solution on a larger scale.
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The selected partnerships can benefit from co-financing of up to EUR 200,000 (EUR 300,000 from 2026 onwards), representing a maximum of 50% of the total proposed project budget.
The co-financing is considered as aid falling under the “de minimis” regulation.
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Co-financed projects must contribute to the achievement of the SDGs. In concrete terms, the ultimate aim is to enhance the lives and livelihoods of populations in the countries where the projects are implemented.
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Proposed projects are assessed against the following selection criteria:
- Innovation and cost-effectiveness: For a solution to be considered innovative, it must sufficiently distinguish itself from products, services, or approaches already present in the local market. This may involve differences in design, distribution, target audience, economic model, and anticipated resilience to future developments;
- Societal impact and futureproof: The solution must contribute to the Sustainable Development Goals, such as job creation, poverty reduction, access to healthcare, preservation of ecosystems and biodiversity, and combating climate change, etc. Projects must take into account adaptation to future risks and trends;
- Project viability and financial sustainability: Partners must demonstrate that the project will be able to generate revenue in the short or long term, ensuring its continuity beyond the co-financing period. Projects with opportunities for additional funding after the project ends will be valued;
- Additionality and neutrality of co-financing: Projects must provide added value that would not have been created without the financial support of the BPF. The BPF committee pays special attention to avoiding market distortion by co-financing projects similar to initiatives already present in the market;
- Added value for all partners: Partnerships must be balanced, efficient, and mutually beneficial for each partner, demonstrating complementary skills and expertise mobilised by each of them within the project;
- Potential of technology/know–how transfer: Projects must detail technology transfers from North to South, including specific technologies, skills and know-how. Emphasis should be on training employees in developing countries, assessing the effectiveness of the skills transfer and ensuring its sustainability.
Selection process
Step 1: Call for proposals
Submission of a concept note including:
- Short project description
- Presentation of the partners
Pre-selection
Eligibility criteria checks
Preliminary due diligence
Assessment based on selection criteria
Step 2: Detailed proposal
Submission of a complete proposal*
In-depth due diligence
* For Luxembourgish enterprises: support of Luxinnovation
Selection
Pitch presentation
Final selection decision
Contractualisation and project implementation
Definition of the project’s key result indicators
Signature of the co-financing agreement
Regular monitoring and evaluation
Calls for proposals
Calls for proposals
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Business Partnership Facility
Call for proposals – BPF – 2nd edition of 2025
Open until 31.10.25All developing countriesAll sectors -
Business Partnership Facility
Call for proposals – BPF – 1st edition of 2025
Open until 30.04.25All developing countriesAll sectors -
Business Partnership Facility
BPF – Call for proposals – Second edition 2024
Open until 31.10.24All developing countriesAll sectors
Examples of supported projects
No matching results
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News
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Business Partnership Facility
Apr. 2026The Business Partnership Facility celebrates 10 years of impact
Relive the ten first years of the BPF through this short video! -
Business Partnership Facility
Apr. 2026An innovative partnership between insurance and microfinance for climate resilience
In this in‑depth interview, the key stakeholders of this BPF‑supported project in Bangladesh explain how the partnership between APDS and IBISA was built, how their complementary expertise addresses climate‑related risks, and the impact they aim to achieve for farmers and local financial systems. -
Business Partnership Facility
Apr. 2026When insurance meets microfinance: a new approach to climate resilience
What happens when insurance innovation meets microfinance, with the right public‑private support? This Paperjam English article shows how BPF backing helped unlock a solution that strengthens farmers’ resilience to climate risks while safeguarding the sustainability of microfinance institutions. -
LuxAid Challenge Fund
Mar. 2026Driving innovation for impact in Costa Rica
Since the launch of the current call for proposals, the initiative has drawn strong attention from Costa Rica’s business and innovation community. Several national media outlets have reported on the Fund, reflecting the relevance of its mission: supporting companies that are ready to consolidate and scale solutions with measurable development… -
LuxAid Challenge Fund
Feb. 2026Unlocking Agritech and Fintech innovation potential in Costa Rica
The Luxembourg Development Cooperation and the Costa Rica Ministry of the Economy, Industry and Commerce (MEIC) are joining forces to support Costa Rica’s most ambitious Agritech and Fintech innovators. Early-stage business proposing a high-impact solution are invited to apply before 30 March 2026. Up to EUR 120,000 in co-financing is… -
LuxAid Challenge Fund
Nov. 2025How businesses from Kosovo are transforming education and manufacturing
In late 2024, Luxembourg’s Development Cooperation launched a new call for proposals under the LuxAid Challenge Fund, a programme designed to support innovative, locally driven solutions to social and economic challenges. Competition was intense: more than 80 applications poured in from across Kosovo, each with bold ideas to tackle the… -
LuxAid Demonstration Fund
Feb. 2026Luxembourg Embassy briefing highlights support for innovation and private sector growth in Kosovo
On 28 January 2026, the Luxembourg Embassy in Pristina hosted an information and briefing event that brought together representatives of Kosovo’s business community, institutions, and partners to present the LuxAid Demonstration Fund (LDF), an initiative financed by the Grand Duchy of Luxembourg and implemented by LuxDev, the Luxembourg Development Cooperation… -
LuxAid Demonstration Fund
Dec. 2025Over 1 million euros to supports 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 Kosovo-based businesses. The LuxAid Demonstration Fund (LDF) seeks to accelerate the growth and impact of digital and green innovative solutions. Selected projects will receive up to EUR… -
LuxAid Demonstration Fund
Dec. 2025Driving Change in Kosovo: How businesses are tackling city congestion and industrial waste
What if the greatest challenges to Kosovo’s future weren’t a shortage of ideas, but the struggle to turn them into reality? Across the country, a new wave of companies is turning real-world problems into scalable products – from easing urban congestion to cutting industrial waste. Among the initiatives supporting this…
Our partners
In addition to the Ministry of Foreign and European Affairs, Defence, Development Cooperation and Foreign Trade, whose representative chairs the BPF selection committee, several other institutional players are involved. These key stakeholders within Luxembourg’s entrepreneurial ecosystem bring their expertise to ensure the optimal functioning of the BPF.

