Mr Romain Schneider, Minister for Development Cooperation and Humanitarian Affairs, and Mr Manuel Tonnar, Director of the Luxembourg Development Cooperation, presented the new Luxembourg’s General Development Cooperation Strategy: The Road to 2030 during the annual Luxembourg Development Cooperation Conference organised on September 19th.
The main objective of the Luxembourg’s development cooperation is to contribute to the eradication of extreme poverty and the promotion of economic, social and environmental sustainability. To achieve this objective, Luxembourg will continue to promote a multi-stakeholder partnership approach in the framework of the 2030 Agenda for Sustainable Development and the Sustainable Development Goals.
To contribute to the eradication of extreme poverty in a sustainable development framework, Luxembourg will focus on four interrelated thematic priorities:
- Improving access to quality basic social services
- Enhancing socio-economic integration of women and youth
- Promoting inclusive and sustainable growth
- Strengthening inclusive governance
Luxembourg’s new general development cooperation strategy expands from a previously sector-based prioritisation towards more inclusive thematic priorities.
Inclusive finance is part of this strategy. Indeed, building on its expertise as a leading international financial centre and in the integrated local development approaches, Luxembourg will support partner countries in creating and enabling environment for enhanced private sector engagement and development and public-private partnerships by creating value chains and leveraging innovative financing mechanisms, such as blended, green and inclusive finance. In addition, strengthening the support for inclusive finance to ensure that the most vulnerable populations have access to basic financial services and promoting responsible investment are also underlined.
Regarding the financial instruments implemented, while grant financing will remain the main financial instrument of Luxembourg bilateral cooperation, it will continue to diversify its instruments. This will include an increased focus on impact-investing, through inclusive finance solutions.
Finally, among other non-financial modalities to implement the strategy, as a recognised centre of excellence in inclusive finance, Luxembourg will continue to support knowledge transfer in inclusive finance to partner countries.
To know more about the Luxembourg’s General Development Cooperation Strategy click here
Source: Luxembourg Aid Development