Introduction
Development cooperation relations between Nicaragua and Luxembourg first began in 1993. The first general cooperation agreement setting out cooperation relations between the two countries was signed in 2000. The tourism, health and vocational training sectors were the traditional priority areas for Luxembourg’s Development Cooperation in Nicaragua.
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However, as a result of the social and political crisis that began in April 2018, Luxembourg made changes to its development aid support to Nicaragua. Thus, direct disbursements to the government were frozen and the conclusion of any new Indicative Cooperation Programme (ICPs) was postponed. Since that time, development cooperation in Nicaragua has featured, notably, multilateral support and significant aid to the NGOs in the country.
Since 2018, Luxembourg has continued to provide significant support to Nicaraguan civil society in relation to the promotion of human rights and democratic values, particularly through a multi-donor support fund for Nicaraguan civil society, FASOC. This brings together five donors and is implemented by Oxfam. There is also a project by the NGO Front Line Defenders to support human rights activists. In parallel, multilateral programmes were prioritised in 2020, including through the continued financing of a school canteens project to
tackle food and nutrition insecurity for children in the north and north-east of Nicaragua through the World Food Programme (WFP). Luxembourg also provided humanitarian support following the Eta and Iota hurricanes, through emergency aid to the International Federation of Red Cross and Red Crescent Societies (IFRC) and technical assistance with the WFP for capacity-building in the management and prevention of crises and natural disasters.
Two Luxembourgish NGOs, Frères des hommes and Terre des hommes, implemented activities co-financed by the MFA in 2020, targeting democratic participation, agricultural advisory services, vocational training and the care of children and young people living in poorer and deprived districts.
Priority areas of intervention
- Zero hunger
- Good health and well-being
- Decent work and economic growth
- Peace, justice and strong institutions
Development of PDA
Luxembourg has supported civil society’s response to COVID-19 in the health and socio-economic spheres, particularly through the multi-donor support fund for civil society (FASOC) and the micro-projects fund of the Embassy in Managua, supporting initiatives fostering e-commerce and remote education as well as the distribution of hygiene, medicine and food packs. As part of the Team Europe approach and in order to mitigate the pandemic’s socio-economic impact, Luxembourg and the European Union delegation on the ground have jointly supported the World Food Programme (WFP) with total funding of EUR 15 million in order to guarantee food security for 182,000 children and support to 3,000 small farmers in the north of the country.
Reference data
- Population (MIO): 6,545,502
- GNI (per resident): USD 1,910
- Human Development Index (HDI): 126/189
- Life expectancy: 74
- Indicative Cooperation Programme: amendment of ICP III (2015-2017)
Key achievements 2020
- Luxembourg strengthened its support for Nicaraguan civil society and human rights, including the project by the NGO Front Line Defenders to support human rights activists.
- Through the WFP's school canteens programme, the food security of 182,000 children in rural areas was strengthened.
- Luxembourg provided emergency aid following hurricanes Eta and Iota, through the International Federation of the Red Cross.
Sector breakdown
2020