FMO and Luxembourg's Directorate for Development Cooperation and Humanitarian Affairs have signed a Memorandum of Understanding (MoU), establishing a framework for long-term cooperation to support private sector development, mobilise investment and advance sustainable development in emerging markets. The agreement reflects a shared commitment to leveraging public and private resources to address development challenges and accelerate progress towards the Sustainable Development Goals (SDGs).
The partnership builds on a growing relationship between FMO, Luxembourg and LuxDev, the Luxembourg Development Cooperation Agency, grounded in a shared belief that sustainable economic development requires strong local markets, thriving businesses and well-functioning financial systems. Through the MoU, the partners will explore opportunities to strengthen market systems, support financial sector development and increase the flow of capital towards businesses that contribute to inclusive and sustainable growth.
At a time when development challenges are becoming increasingly complex, partnerships between development finance institutions and bilateral donors play an essential role in delivering impact at scale. Development cooperation funding can help address market constraints and absorb early-stage risks, while development finance institutions provide investment expertise, market knowledge and the ability to mobilise private capital. Together, these complementary strengths can help create the conditions for sustainable investment and long-term economic growth.
The MoU also marks Luxembourg's participation in FMO's broader efforts to develop innovative market creation approaches that address the root causes of underinvestment in emerging economies. By combining Luxembourg's development cooperation experience with FMO's expertise in development finance and market creation, the partnership aims to support solutions that are sustainable, scalable and capable of attracting additional investors over time.
The agreement establishes a foundation for future collaboration across shared priority areas and geographies, creating opportunities to develop new programmes and initiatives that strengthen local financial ecosystems, expand access to finance and support private sector growth. Ultimately, the partnership seeks to contribute to more resilient economies, better livelihoods and lasting development impact.
Jorim Schraven, Director Impact at FMO, said, "Our partnership with Luxembourg reflects a shared ambition to address the barriers that hold markets back and to mobilise the capital needed to deliver sustainable development impact. The Sustainable Development Goals cannot be achieved through public resources alone. They require strong partnerships that combine catalytic donor funding with development expertise and private investment. We look forward to working together with Luxembourg to create opportunities for businesses, financial institutions and communities across emerging markets."
Georges Ternes, Director General for Development Cooperation and Humanitarian Action at Luxembourg's Ministry of Foreign and European Affairs, Defence, Development Cooperation and Foreign Trade, said, "As development challenges evolve, we must continuously adapt our approaches and work across sectors to maximise impact and remain closely aligned with the realities and needs of people on the ground. Through this partnership with FMO, we aim to unlock opportunities for sustainable investment, strengthen local economic ecosystems and create lasting impact for communities around the world."
