A word from the chairman and director general

In an international context marked by persistent geopolitical tensions, tighter budgetary constraints and a growing questioning of multilateralism, official development assistance is under pressure worldwide. This trend comes at a time when the financing needs associated with achieving the Sustainable Development Goals (SDGs) remain substantial.

This context calls for continuous adaptation of the approaches and instruments of international cooperation, in the spirit of the discussions held at the 4th International Conference on Financing for Development, which took place in Seville in 2025. It highlights the need to better target priorities, enhance aid effectiveness, and, where appropriate, seek a catalytic effect capable of mobilising additional financing from both public and private sources.

For LuxDev, this evolution prompts further reflection on the implementation of cooperation policy, in line with the orientations set by the government. The aim is to reconcile the country’s commitment to international solidarity with heightened requirements in terms of selectivity, impact, sustainability and good governance in the use of resources.

Against this backdrop, LuxDev initiated several significant developments in 2025, the key features of which are outlined below.

Mobilising all available levers – both public and private – has become crucial to supporting the achievement of the SDGs. With this in mind, LuxDev adopted a new modality for engaging the private sector. The following pages illustrate how, by involving businesses in the pursuit of the SDGs, the Agency intends to broaden its scope of action while remaining true to its mission: contributing to sustainable, inclusive development that benefits the most vulnerable populations.

Another turning point marked 2025: the end of bilateral cooperation in the Sahel. In line with government orientations, and following geopolitical developments in the region, the bilateral programmes funded by Luxembourg Development Cooperation in Senegal, Mali, Niger and Burkina Faso came to an end on 31 December. These interventions leave behind tangible results, reflecting concrete improvements in people’s living conditions and the lasting strengthening of national capacities in key sectors.

While Luxembourg’s bilateral interventions have come to a close, LuxDev’s commitment to the region nevertheless continues through projects financed by the European Union, ensuring the continuity of the Agency’s work within a renewed framework.

Luxembourg Development Cooperation and, consequently, a repositioning of LuxDev’s operations in the field.

This shift, initiated in recent years, reached its culmination in 2025. It enabled the Agency to establish new footholds across several continents, from South-East Asia to Central America, via coastal West Africa. This redeployment involved forging new partnerships, developing cooperation frameworks tailored to the priorities of partner countries, and launching initial actions laying the foundations for long-term collaboration.

Signed in April 2025, the general cooperation agreement between Luxembourg and Cambodia thus marked the opening of a new chapter in South-East Asia. Meanwhile, the headquarters agreement obtained from the Togolese government in November enabled the deployment in Lomé of the teams responsible for implementing the future Togo-Luxembourg Indicative Cooperation Programme (ICP). In Latin America, the ratification of the framework agreement with Costa Rica at the end of 2024 provided decisive momentum to LuxDev’s activities, making the San José regional office a central hub for the roll-out and management of programmes at regional level.

While numerous projects were formulated in these new areas of intervention during 2025, several initiatives already entered the launch phase. In some cases, initial results were already visible, notably through LuxDev’s participation in Team Europe initiatives or the implementation of cooperation delegated to partner agencies, confirming its ability to embed its new interventions in a structured and fast-paced operational dynamic.

However, the effort that most clearly illustrates LuxDev’s ability to adapt to large-scale crises is its engagement in Ukraine, which has become the Agency’s leading country of intervention in terms of financial volume, with a total of EUR 30,573,652 disbursed, representing 18.09% of total disbursements for the year.

In response to the continued deterioration of the security and humanitarian situation in the country, LuxDev managed significant budget increases provided by the Grand Duchy of Luxembourg, including an additional contribution of EUR 20 million to the Ukraine Energy Support Fund, as well as a strengthening of psychosocial support services in schools in the Kryvyi Rih district, with a budget of EUR 1.68 million.

At the same time, the Agency ensured the continuity of its activities in countries where its presence is now firmly established. Thus, interventions (co-)financed by Luxembourg continued at a steady pace in Benin, Cabo Verde, Kosovo, Laos, Rwanda and Vietnam. New structuring support initiatives were also prepared, notably in Benin, Kosovo and Mongolia.

Thanks to the government’s ambitious cooperation policy, which maintained the allocation of 1% of its gross national income to official development assistance, 2025 was a standout year for LuxDev, with an unprecedented level of activity (EUR 169 million implemented, compared to EUR 144.3 million in 2024). This significant increase reflects the numerous mandates entrusted to the Agency by the Ministry of Foreign and European Affairs, Defence, Cooperation and Foreign Trade, complemented by those of the Ministry of the Environment, Climate and Biodiversity and the Ministry of the Economy.

This momentum was further underpinned by strengthened partnerships with third-party donors, whose disbursements reached EUR 23.2 million in 2025, illustrating LuxDev’s ability to mobilise diverse resources around shared priorities.

Once again, 2025 demonstrated that LuxDev’s work is, above all, built on a collective commitment. The Agency benefited from the renewed trust of the government, and more particularly of the minister responsible for Luxembourg Development Cooperation, Xavier BETTEL, as well as from the support of its partners and the steadfast dedication of its teams, both in the field and at headquarters.

We extend our thanks and sincere appreciation to all, and especially to our staff based in the Sahel countries, whose exemplary professionalism and commitment were evident right up to the very end. 

The results achieved in 2025, highlighted in the following pages, bear witness to the Agency’s capacity for adaptation, resilience and innovation.