Creating Sustainable Value

Luxembourg Microfinance and Development Fund (LMDF)

About LMDF

Creating Sustainable Value

Luxembourg Microfinance and Development Fund (LMDF)

About LMDF

Performance overview

Figures relate to LMDF-supported projects and refer to realised impact as of 31 December 2025

$55.4m

assets under management

$44.1m

net asset value

41145

rural borrowers reached

$2,131

average loan size to end clients

61554

direct beneficiaries (people)

219m

indirect beneficiaries (people)

45%

invested in companies aligned with 2X gender lens investment criteria

57%

of third-party funding mobilised from private sources

Sustainable impact objectives

LMDF’s objective is to expand access to economic resources and opportunities for low‑income and vulnerable populations in emerging and frontier markets. Through its blended‑finance structure and deep expertise in inclusive finance, the Fund empowers micro‑entrepreneurs, particularly women and rural households, to build more secure livelihoods and participate in local economic development. In doing so, LMDF directly advances SDG 1 (No Poverty) and SDG 8 (Decent Work and Economic Growth).

A core focus of LMDF is the economic inclusion and empowerment of women, in line with SDG 5 and SDG 10. By partnering with mission‑aligned microfinance institutions that demonstrate strong social performance and gender‑inclusive lending practices, LMDF supports women entrepreneurs to start and grow their businesses and address structural barriers that limit women’s access to finance, while promoting greater autonomy, resilience and decision‑making power at household and community levels.

LMDF’s blended structure also plays a catalytic role in mobilising private capital, contributing to SDG 17. By anchoring public and philanthropic commitments, LMDF de‑risks inclusive‑finance markets and enables retail and institutional investors to participate in high‑impact portfolios that are otherwise difficult to access. This approach strengthens local financial ecosystems and deepens the availability of client‑centred, responsible financial services.

Through these combined efforts, LMDF advances a clear and intentional sustainable‑investment strategy: to expand economic opportunities for vulnerable populations, empower women’s financial inclusion and mobilise private capital toward more equitable and resilient economic systems.

View LMDF's Theory of Change

Case study: Avanza Sólido

Scaling rural microfinance in southern Mexico to expand access to credit and complementary services for underserved communities.

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Image sources: (top to bottom) LMDF archives, LMDF archives, Avanza Sólido Mexico

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