Sustainable business partnershipThe Business Partnership Facility (BPF) was set up by the Minister for Development Cooperation and Humanitarian Affairs, in partnership with the Chamber of Commerce, in 2016. The initiative has an annual budget of €1 million to co-finance private sector initiatives that contribute to development and job creation in developing countries and/or to the transfer of technology. The aim is to allow developing countries to benefit from investment, technology transfer and business expertise. Participating companies have an opportunity to discover new markets, set up new partnerships and develop synergies with local players.

Focus on sustainability

The BPF co-financing has the form of a grant that may cover up to 50% of project cost with a maximum threshold of €200,000. In order to be eligible, projects should contribute to the implementation of the United Nations’ 17 Sustainable Development Goals, be neutral to avoid market distortions and be of mutual interest and shared responsibility between the partners. Proposals must show the additionally of the BPF co-financing, the effect and replicability of project actions and respects of social, environmental and fiscal norms as well as of human rights.

Partnerships must include a minimum of two entities, i.e. a Luxembourg/European partner and a local partner established in a developing country. The local partner can be a private company, a public entity, a university, a research institute or a civil society organisation. All developing countries eligible for official development assistance, as defined by the OECD, are targeted, but project in countries where Luxembourg is already present will be prioritised. These are:

  • Africa: Burkina Faso, Cabo Verde, Ethiopia, Mali, Niger, Senegal
  • Asia: Laos, Mongolia, Myanmar, Vietnam
  • Central America: El Salvador, Nicaragua
  • Europe: Kosovo

2019 BPF call

The 2019 BPF call was launched on 1 March and the deadline for submitting concept notes is 12 April. An official information session will be held shortly before that deadline on 4 April. The submitters of selected proposals will be invited to submit detailed action plans. After validation of the action plans, financing agreements will be concluded in October 2019.

Photo credit: LuxDev

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