Business Partnership Facility

In the wake of initiatives by other European countries to support the private sector in developing countries, the Luxembourg Ministry of Foreign and European Affairs (MFA) has decided to launch on 18 April 2016, the Business Partnership Facility (BPF). This facility aims at providing by MFA an annual budget of one million euros as working capital, to encourage the Luxembourg and European private sector making partnerships with peers, civil society or public institutions to implement sustainable business opportunities in developping countries.

BPF is launching as a call for projects on a biannual basis. Applications are submitted to a selection committee. Selected projects are co-financed at a maximum of 50% with a threshold of EUR 200 000 and, as a donation. The balance of the funding  necessarily comes from private funds.

All sectors of activity are eligible for co-financing, provided that the project in question contributes to the Sustainable Development Goals.

Throughout the implementation of the project, LuxDev's role is to provide direct management support for the preparation, launch and evaluation of calls for projects and the preparation and monitoring of funding agreements.

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.