Luxembourg and the European Investment Bank Strengthen Their Cooperation on Microfinance and Climate Action
The Grand Duchy of Luxembourg and the European Investment Bank (EIB) have committed to working ever more closely together on two of their joint priorities: the development of the microfinance sector in African, Caribbean and Pacific Group of States (ACP) countries and the fight against climate change. At the EIB’s annual Donors Conference, taking place in Luxembourg last week, they launched a Financial Inclusion Fund, dedicating EUR 3.6 million to support for micro and small businesses in Africa, the Caribbean and the Pacific. They also agreed to extend the Luxembourg-EIB Climate Finance Platform, which was originally established in 2017 for three years.
The new Financial Inclusion Fund is jointly financed by Luxembourg’s Ministry of Finance and Ministry for Foreign and European Affairs. It aims to facilitate access to financial services for micro and small businesses in least developed and low-income, but also middle-income, countries in the ACP region. Primarily earmarked for technical assistance, the fund is designed to strengthen the capacity of EIB microfinance counterparts, making them more sustainable and stronger. It will be open to contributions from other donors.