At least 54 enterprises operating in Uganda’s forestry and wood-based value chains are set to receive tailored business support under a six-month acceleration programme aimed at improving competitiveness, attracting investment and expanding access to markets.
The programme, launched by the Food and Agriculture Organization of the United Nations (FAO), seeks to strengthen businesses involved in forestry and wood processing, promote domestic value addition and create employment while encouraging the sustainable use of forest resources.
Implemented under the Sustainable Wood-Based Value Chains Project, the initiative is funded by the European Union and the Kingdom of Denmark. It will support participating small and medium-sized enterprises (SMEs) to address business growth challenges, improve financial performance and become better positioned to secure financing for expansion.
The initiative comes as Uganda seeks to strengthen domestic manufacturing, reduce reliance on imported wood products and capture greater economic value from its forest resources.
Although forestry offers opportunities for industrial development, trade and job creation, businesses in the sector need stronger operational capacity, access to finance and reliable markets to compete effectively.
Under the programme, the 54 enterprises will receive tailored business development services covering operational efficiency, financial management, market expansion and investment readiness. The initiative will also facilitate connections with financial institutions, investors and regional and international markets.
Launching the programme, Issa Katwesige, Assistant Commissioner of Forestry, Planning and Development at the Ministry of Water and Environment, said Uganda needed to develop competitive industries that could transform forest resources into higher-value products and sustainable economic opportunities.
“The future of Uganda’s forest sector lies not simply in growing trees, but in building competitive enterprises, modern industries, skilled jobs and sustainable livelihoods,” Katwesige said.
He emphasised the importance of strengthening businesses along the forestry value chain to ensure the sector contributes more substantially to economic growth and employment.
Cristina Banuta, Programme Manager at the European Union Delegation to Uganda, said improving enterprises’ readiness for investment would be essential to unlocking the sector’s growth potential.
“Uganda has the potential to develop competitive wood-based industries and contribute to Vision 2040’s tenfold economic growth ambition. The SME Acceleration Programme will help promising enterprises become investment-ready,” Banuta said.
She highlighted the role of business development support in helping enterprises strengthen their operations, attract financing and expand into new markets.
The acceleration programme will focus on addressing the specific needs of participating enterprises, with support designed to improve business performance and prepare them for sustainable growth.
In addition to strengthening financial management and operational efficiency, the programme will help businesses identify market opportunities and establish links with potential buyers, financiers and investors.
Access to finance remains an important consideration for enterprises seeking to expand production, invest in modern equipment and improve the quality of their products. By strengthening their business plans and investment readiness, participating SMEs are expected to be better positioned to engage potential financiers.
The launch also brought together participating enterprises, business development service providers, financial institutions, investors and other stakeholders to discuss the programme’s implementation approach, expectations and available support.
The engagement was intended to clarify the responsibilities of FAO, participating businesses and service providers while helping enterprises understand what financiers and investors look for when assessing potential investments.
The initiative is part of broader efforts to connect sustainable forest management with industrial development, employment and improved livelihoods.
Hitimana Leonidas, FAO Team Lead for Forestry, said stronger wood-based enterprises could help Uganda retain more value from its forest resources, reduce dependence on imported products and improve its competitiveness in regional markets.
He noted that developing a resilient forest-based industry would require businesses capable of producing quality products while operating sustainably.
The programme is therefore intended to support not only enterprise growth but also the development of a forest-based economy that creates decent jobs and encourages responsible production and processing.
Stronger domestic processing capacity could enable Ugandan businesses to move beyond supplying raw materials towards producing finished and higher-value wood products for local and export markets.
Such a shift would create opportunities to increase domestic value addition, strengthen manufacturing and improve the contribution of forestry to the national economy.
The Sustainable Wood-Based Value Chains Project forms part of the broader European Union–Uganda Forest Partnership, which seeks to increase the contribution of forests to inclusive economic growth, employment and livelihoods.
The partnership also addresses challenges associated with deforestation, climate change and biodiversity loss, with an emphasis on sustainable management of forest resources.
Through the six-month acceleration programme, FAO and its partners aim to strengthen the capacity of selected enterprises to grow, attract investment and access new markets while supporting the development of a more competitive and sustainable forestry sector.
The impact of the initiative will ultimately depend on how effectively participating businesses apply the support, secure financing, improve their operations and translate new market opportunities into sustainable growth and employment.