It was created in 1978 as an agency to support small and medium enterprises in Luxembourg and only became an agency for development cooperation in 1992. Now, LuxDev is a société anonyme (S.A.) whereby their stockholders are the state of Luxembourg (98%) and the state-owned bank Société Nationale de Crédit et d'Investissement (2%).
LuxDev is headquartered next to the Place des Martyrs in Luxembourg City, but it has regional offices in Hanoi (Vietnam), Pristina (Kosovo), Dakar (Senegal), Praia (Cape Verde), Ouagadougou (Burkina Faso) and Managua (Nicaragua).
LuxDev handles almost all of the resources allocated by the government of Luxembourg to bilateral official development assistance. It can however also execute programs financed by other bilateral donors and the European Commission.
The Agency manages projects in four main sectors: local development (agriculture and food security, decentralisation and local governance, water and sanitation), education (especially vocational education and training), microfinance and health.
Programmes are concentrated in Luxembourg's nine privileged partner countries, Burkina Faso, Cape Verde, El Salvador, Laos, Mali, Nicaragua, Niger, Senegal and Vietnam. Additionally, other countries that receive support are Mongolia, Serbia, Kosovo and Montenegro.