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Introduction

Development cooperation relations between Nicaragua and Luxembourg first began in 1993. The first general cooperation agreement setting out cooperation relations between Nicaragua and Luxembourg was signed in 2000. The tourism, health and vocational training sectors are the priority areas for Luxembourg’s Development Cooperation in Nicaragua.

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As a result of the social and political crisis that began in April 2018, Luxembourg made changes to its development aid support to Nicaragua. As direct disbursements to the government had been frozen and the new Indicative Cooperation Programme (ICP) had not been signed, 2019 saw the end of bilateral programmes in tourism, vocational training and health. In relation to health, the construction of a primary hospital in El Cuá is of particular note. This will make it possible to deliver high-quality healthcare to a rural population of more than 50,000 people.

In 2019 Luxembourg’s Development Cooperation was able to reposition its development aid to Nicaragua in order to provide humanitarian support to the population and to strengthen its support for Nicaraguan civil society, particularly regarding the protection of human rights and democratic values. Thus, in 2019 support for the WFP school meals programme was signed, seeking to provide food security in rural areas, alongside new funding for the Civil Society Support Fund (FASOC) managed by Oxfam and a project by the Frontline Defenders NGO to support human rights activists. Cooperation with local NGOs has also been strengthened through the micro-projects fund of the Embassy in Managua.

Two Luxembourgish NGOs, Frères des hommes and Terre des hommes, have implemented projects in 2019, targeting the comprehensive care of children and young people at social risk, capacity-building (including food capacity) and the informal economy.

Finally, Luxembourg has continued to strengthen its support for regional projects in Central America, particularly the Central American Integration System (SICA), of which Nicaragua is a member country.

Highlighted project

FASOC (Nicaraguan Civil Society Support Fund)

In 2019, Luxembourg renewed its support for the multi-donors FASOC funds (Nicaraguan Civil Society Support Fund), managed by Oxfam, with a total of EUR 1.4 million. This fund aims to strengthen local civil society organisations, while responding to the socio-political and economic crisis in a holistic way. FASOC supports the projects of local NGOs, mainly in the areas of human rights and a culture of peace, women’s rights and socio-economic recovery. The fund also supports Nicaraguan refugees in Costa Rica.

Priority areas of intervention

  • Zero hunger
  • Good health and well-being
  • Decent work and economic growth
  • Peace, justice and strong institutions

Development of PDA

Reference data

  • Population: 6,545,502
  • GNI (per resident): USD 1,910
  • Human Development Index (HDI): 126/189
  • Life expectancy: 74
  • Indicative Cooperation Programme: amendment of ICP III (2015-2017)

Key achievements 2019

  • In 2019, the excellent collaboration with the World Food Programme (WFP) in the north of Nicaragua enabled more than 180,000 children living in remote areas to receive free meals and to continue attending school.
  • Through Luxembourg’s support to FASOC (Oxfam), about 30 Nicaraguan civil society organisations have received support from Luxembourg in the key areas of human rights, gender and basic social services.

Sector breakdown

2019