- Home
- Preface
- I. Luxembourg’s official development assistance in 2014
- 2015 – European Year for Development
- Multilateral cooperation commitments in the health sector
- Action plan for development effectiveness 2014-2016
- II. Cooperation with the main partner countries
- III. Regional cooperation and cooperation with other countries
- IV. Multilateral cooperation
- V. European Union
- VI. Cooperation with non-governmental development organisations
- VII. Humanitarian action
- VIII. Programme support
- IX. Development education and awareness raising
- X. Microfinance
- XI. Evaluation
- XII. Report on the progress of the work of the Interministerial Committee for Development Cooperation
- Appendices
X. Microfinance
Vietnam - Better water use produces higher rice yields (Cao Bang)
Inclusive finance
Luxembourg’s development cooperation is maintaining its commitment to actively support the development of inclusive finance, recognising that these tools constitute important mechanisms for poverty reduction. In 2014, those efforts have been made to channel financial support with the aim of deploying them better in specific sectors and improving further the efficiency of the funds in our partner countries. With this efficiency-based approach, in 2014 Luxembourg’s development cooperation continued its multiannual commitments with its various partners such as the European Microfinance Platform, the NGOs ADA and SOS Faim, the Microinsurance Network and the Consultative Group to Assist the Poor (CGAP).
2014 saw also the creation of the Inclusive Finance Network Luxembourg asbl (InFiNe.lu) network, a national Luxemburgish platform for inclusive finance supported by the Directorate of Development Cooperation and Humanitarian Action. InFiNe.lu is the formal manifestation of the “Microfinance round table” project, which was initiated in 2003 and is an active network of 21 members from the private and public sectors and civil society in the Grand Duchy of Luxembourg focusing on promoting inclusive finance. Together with the European Microfinance Platform (e-MFP), InFiNe also manages the European Microfinance Prize, in partnership with the European Investment Bank. 2014 saw the sixth edition of this prize with “Microfinance and the environment” as its theme.
The prize was awarded to Kompanion Financial Group of Kirghizstan for a project on the conservation and management of pasture: the project proposed giving loans to livestock farmers for conservation. Microcredit loans are linked to a training programme that initiates agriculturalists in the practices of sustainable management of the land thus helping to restore degraded land. During November 2014, the Ministry contributed to the organisation of the European Microfinance Week.
The Ministry also continued to support LuxFlag, the Luxembourg Fund Labeling Agency, which issues quality labels to investment funds dedicated to microfinance and environment. The Ministry also supported the Luxembourg Microfinance Development Fund, a microfinance investment fund registered in Luxembourg whose activities consist of giving targeted support to small and medium-sized microfinance institutions active in developing countries.
Finally, the Ministry supported various IFAD (International Fund for Agricultural Development) programmes designed to develop new tools in the sphere of microfinance and inclusive finance, such as the transfer of migrants’ remittencances. Finally, Luxembourg also contributed to funding the MicroMED Tunisia project, which is being implemented by the NGO ADA in partnership with the European Investment Bank.
