Call for Proposals: Business Partnership Facility

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.

Funding Information

• Selected projects receive up to EUR 200,000 in co-financing, covering a maximum of 50% of the total project cost.

Expected Results

• 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.

What kind of innovative projects are co-financed?

• 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.

Eligibility Criteria

• 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.

Selection Criteria

• 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.

For more information, visit MAE.