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Introduction

In July 2022, Minister Franz Fayot signed a new cooperation agreement with a budget of EUR 35 million for the 2023-2025 period, with a strategic vision to diversify bilateral relations, increasing the involvement of the private and research sectors of both countries.

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In addition to the traditional sectors, such as health, vocational training and support for civil society, the cooperation agreement covers more innovative areas, including digital transformation and renewable energies. The new programmes were presented in the framework of a feedback workshop in Pristina in July 2023 and were officially launched in autumn 2023.

LuxDev is implementing the programme “Skills for Sustainable Jobs” to promote sustainable economic growth, full and productive employment and decent work for all through vocational education and training.

The bilateral programme “Sustainable and Inclusive Growth” focuses on supporting the establishment of an Innovation Fund and a Sovereign Wealth Fund. In addition, the project provides support for digital transformation as well as capacity building in the area of cybersecurity in the public administration. In the same field of intervention, Luxembourg’s Development Cooperation is supporting the United Nations Development Programme (UNDP) “Creative Industries Kosovo”, to contribute to the development of an environment that will foster the growth of the creative economy.

In the field of energy transition, LuxDev is overseeing the “Energy Transition and Climate Change Mitigation” programme, aimed at supporting the transition to renewable energies and supporting the development and adoption of climate change mitigation measures, to promote Kosovo’s sustainable and inclusive socio-economic development. Luxembourg’s Development Cooperation is also co-financing, together with Germany, a KfW programme to adapt Pristina’s existing urban infrastructure system.

The bilateral programme “Innovative Health Services” seeks to support the implementation of strategic priorities and the reform of the health system by consolidating interventions in the sector to date and providing new and more innovative support to the Ministry of Health. In addition, Luxembourg’s Development Cooperation is also supporting the UNDP, the World Health Organization (WHO) and UNICEF in the implementation of programmes on environment-related and early childhood illnesses.

An additional bilateral programme provides support to civil society organisations in three areas of intervention, namely the economic and social empowerment of women, the promotion of the social and economic inclusion of minorities and marginalised groups, and independent media. Luxembourg’s Development Cooperation is also supporting the Kosovo Luxembourg Foundation, which aims to contribute to poverty reduction in targeted municipalities in the north and south of Kosovo, by supporting individuals and small family businesses through training, financial support and the creation of partnerships.