At total 54 Ugandan businesses operating in the forestry and wood-processing sector are expected to strengthen their operations, improve access to financing and explore new markets under a six-month enterprise acceleration programme launched by the Food and Agriculture Organization of the United Nations (FAO).
The initiative is designed to help selected small and medium-sized enterprises (SMEs) overcome business growth constraints and increase the value Uganda derives from its forest resources through local processing, manufacturing and trade.
The programme is being implemented under the Sustainable Wood-Based Value Chains Project, funded by the European Union and the Kingdom of Denmark. It will provide participating enterprises with specialised business development services based on their individual needs and growth potential.
Support will cover financial management, operational efficiency, business expansion and investment readiness, alongside opportunities to connect with financiers, investors and prospective markets within and beyond the region.
The initiative comes as Uganda seeks to strengthen domestic industries and create more economic opportunities from its forestry resources. Developing businesses that can transform timber and other forest-based raw materials into finished products could help increase local value addition, generate employment and reduce dependence on imported wood products.
Issa Katwesige, Assistant Commissioner of Forestry, Planning and Development at the Ministry of Water and Environment, said the country needed to build a competitive industry that goes beyond tree growing and raw material production.
“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.
His remarks highlight the need to link sustainable forestry with commercially viable businesses capable of producing quality goods, meeting market standards and creating jobs across the value chain.
For many small businesses, limited access to capital, gaps in financial management and difficulties reaching reliable markets can constrain expansion. The acceleration programme seeks to address these challenges by helping enterprises improve their business systems and demonstrate their readiness for investment.
Cristina Banuta, Programme Manager at the European Union Delegation to Uganda, said supporting enterprises to become investment-ready could help unlock the country’s potential in wood-based manufacturing.
“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.
The programme will also facilitate engagement between participating businesses and financial institutions, enabling enterprises to better understand financing requirements and the factors investors consider when assessing potential investments.
Beyond access to finance, businesses will receive support to identify new markets, strengthen their commercial strategies and improve operational performance. These interventions are intended to help participating enterprises move from growth potential to more sustainable and competitive operations.
Hitimana Leonidas, FAO Team Lead for Forestry, said stronger wood-based businesses could help Uganda retain a greater share of the value generated from its forest resources while improving the country’s position as a supplier of timber and wood products in regional markets.
A more competitive domestic industry could create opportunities for local manufacturers to supply finished products rather than relying primarily on raw materials or imported alternatives. It could also support employment in processing, manufacturing, distribution and related services.
Leonidas emphasised the importance of developing enterprises that combine commercial growth with responsible production and sustainable forest management.
The programme’s approach reflects a broader effort to ensure that economic activity linked to forestry supports livelihoods without undermining the natural resources on which the industry depends.
At the programme launch, participating enterprises met business development service providers, financial institutions, investors and other stakeholders to discuss the implementation process and the support available.
The engagement also provided an opportunity to clarify the respective responsibilities of FAO, participating SMEs and service providers, while helping businesses understand the expectations associated with the six-month programme.
The initiative forms part of the Sustainable Wood-Based Value Chains Project, which falls under the wider European Union–Uganda Forest Partnership. The partnership seeks to strengthen the contribution of forests to inclusive economic growth, employment and livelihoods while addressing deforestation, climate change and biodiversity loss.
Through the acceleration programme, FAO and its partners are seeking to build stronger forestry enterprises capable of attracting investment, expanding markets and contributing to Uganda’s industrial development.
The longer-term impact will depend on participating businesses translating the support into improved productivity, stronger market relationships, increased investment and sustainable job creation.
