FAO backs Ugandan wood enterprises to unlock value in forestry sector

What the report says

More than 90 small and medium-sized enterprises in Uganda’s wood industry have started a four-month business incubation programme designed to boost competitiveness, support value addition and help the forestry sector generate more economic returns. The initiative was launched by the Food and Agriculture Organization of the United Nations (FAO) in Kampala, according to The Independent Uganda, and it covers businesses across the wood value chain, including sawmillers, timber dealers, carpentry workshops, furniture makers, joinery firms, transporters and companies that turn wood waste into products.

The programme comes as the sector faces long-standing challenges such as limited access to affordable finance, uncertainty around regulation and difficulty reaching higher-value export markets. Over the coming months, participants are expected to receive coaching and advisory support in areas such as financial management, business planning, market access, investment readiness, product development, cost control and profitability. FAO says the aim is to help firms grow stronger, create jobs and operate more efficiently and sustainably.

FAO’s forestry team lead in Uganda, Leonidas Hitimana, said the effort is intended to help businesses tap the sector’s underused potential. The European Union also backed the wider importance of sustainable forest-based value chains, while a Ministry of Water and Environment official said the programme fits Uganda’s industrialisation agenda by helping SMEs move from informal, low-value operations toward more formal and competitive business models. The project is being implemented under the Sustainable Wood-Based Value Chains initiative with funding from the EU and Denmark.