The Food and Agriculture Organization of the United Nations (FAO) has launched a four-month Business Development Support Programme for small and medium-sized enterprises (SMEs) in the wood industry, an initiative designed to build more competitive and sustainable businesses, enhancing the sector’s contribution to economic growth and environmental stewardship.
Following a competitive selection process, over 90 forestry and wood value chain enterprises were selected to participate in the four-month business incubation programme. The programme will support enterprises across different segments of the wood-based value chain, including sawmillers, timber dealers, transporters, carpentry and furniture businesses, joinery workshops, interior wood product manufacturers, and enterprises involved in wood waste utilization and value addition SMEs, with tailored coaching and mentorship, delivered by leading business experts.
Through training, mentorship, coaching, and advisory support, participating enterprises will receive support in areas including; financial management, business planning, market access, investment readiness, product development, cost management, and profitability improvement. By strengthening operational efficiency, enhancing value addition, and expanding access to market and finance opportunities, the initiative aims to stimulate demand for sustainable wood products and drive innovation across the industry.
Speaking at the event, Leonidas Hitimana, the Forestry team lead at FAO Uganda, highlighted limited access to affordable finance, ambiguity in sector regulation and limited access to high value export markets, as some of the key challenges for the wood industry.
“The four-month incubation programme will lay a foundation for the development and expansion of these businesses and help harness the immense, often underestimated potential of the wood sector. Our commitment as FAO is to support business growth and job creation within the wood sector,” he said.
Representing the European Union Delegation in Uganda, Jalia Kobusinge, adviser for Sustainable Development Sector, highlighted the importance of sustainable forest-based value chains in supporting jobs, rural development, climate resilience, and green growth.
“Forests must be protected not only as ecosystems, but also as drivers for sustainable jobs, rural development, climate resilience, and green growth. We believe in forest-based value chains that are sustainable, inclusive, gender-sensitive, and create decent employment opportunities,” she said.
Representing the Permanent Secretary of the Ministry of Water and Environment, Irene Nanyondo, a Forest Officer at the Ministry, noted that strengthening enterprises along the value chain is critical for Uganda’s economic transformation.
“As Government, we view this initiative as a graduation model for SMEs. We expect enterprises to progressively move from informal operations to formal, compliant businesses; from producing raw materials to manufacturing value-added products; from serving local markets to becoming competitive regional and international suppliers;” she said.
This initiative is implemented within the framework of the Sustainable Wood-Based Value Chains, implemented by FAO and funded by the European Union and the Kingdom of Denmark.
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