Following the success of the first edition, Luxembourg Development Cooperation is launching a new call for proposals on Wednesday targeting established businesses in Kosovo.
According to the announcement, the LuxAid Demonstration Fund (LDF) aims to accelerate the growth and impact of innovative digital and green solutions.
LUXDEV stated that selected projects will receive up to €350,000 in co-financing.
Applicants are invited to submit their proposals by 6 February 2026.
“The LuxAid Demonstration Fund is an innovative initiative of Luxembourg Cooperation that supports pioneering solutions addressing development challenges through commercial models. The current call for proposals welcomes applications from Kosovo-based enterprises developing innovative digital and green solutions. Co-financing may reach up to €350,000,” the announcement reads.
Addressing Major Societal Challenges
According to the statement, Luxembourg Cooperation is committed to addressing major societal challenges in Kosovo.
The ultimate goal of the call for proposals is to foster a more competitive private sector that drives sustainable growth and prosperity in Kosovo.
The fund welcomes innovations in the following sectors: digital innovation; companies offering digital tools (AI, data analytics, automation, fintech, e-commerce, and cybersecurity) to stimulate growth or exports; ICT service providers and export-ready outsourcing firms scaling digital innovations and expanding international partnerships; workforce-skills initiatives linking digital and green skills with employment opportunities in emerging industries; and health-tech and e-health solutions focused on cardiovascular care.
It also supports initiatives related to energy efficiency and the transition to clean energy in business operations, including circular economy models and waste valorization to reduce resource use and increase recycling; sustainable agribusiness and processing, circular agriculture by transforming by-products into new products and promoting resource-efficient models; as well as climate adaptation solutions focused on water efficiency and resource security.
Tailored Support for Mature Companies
According to the announcement, the LuxAid Demonstration Fund targets formal commercial or cooperative enterprises that meet the following criteria: registered in Kosovo before 1 November 2022; employing at least five individuals; having an annual turnover below €50 million; implementing an innovative product or service already tested on the market with proven revenue generation for at least one year and demonstrable social impact; proposing a 1–2-year business project built around their innovation; and being able to co-finance at least 50% of the total project costs.
Co-financing ranging from €100,000 to €350,000 is offered to support the scaling of innovative solutions, expanding their reach and impact for the benefit of local communities.
Applications Open Until 6 February
As part of this call for proposals, interested enterprises are invited to submit their applications through the official submission platform by 6 February 2026. Ten shortlisted candidates will benefit from targeted training to strengthen their proposals and prepare for pitching.
They will be invited to present their projects before the selection committee in June 2026. Final decisions are expected by July 2026, with three to four projects to be selected.
