Investment & Fund Management

On 26 September 2019, the European Investment Fund (EIF) signed an agreement to acquire a EUR 500,000 stake in microlux, Luxembourg's leading microcredit institution. This investment was facilitated by the EU Programme for Employment and Social Innovation (EaSI), aimed at enhancing microlux's capacity to support microentrepreneurs who lack access to traditional banking services. The EIF's involvement is expected to significantly boost microlux's ability to provide microloans, thereby expanding its role in fostering economic and social inclusion in Luxembourg and the Greater Region.

Since its establishment in 2016, microlux has focused on promoting entrepreneurship among individuals who are underserved by conventional financial institutions. In just three years, microlux has conducted approximately 400 meetings with potential microcredit clients, supported around 150 microentrepreneurs through a network of volunteer coaches, and disbursed 80 microloans averaging EUR 14,000 each. These efforts have resulted in the creation of 58 new companies and approximately 80 jobs, demonstrating the tangible impact of microlux's services on the local economy.

The EIF's investment not only strengthens its partnership with microlux but also aligns with broader EU objectives to enhance financial inclusion and support job creation. The EaSI programme, under which this investment falls, has allocated significant resources to improve access to microfinance across Europe, mobilizing EUR 2.7 billion in financing for micro-enterprises and social enterprises since its inception. This strategic collaboration is set to empower more microentrepreneurs in Luxembourg, providing them with the necessary financial means to thrive and contribute to the community.