Government has partnered with the Food and Agriculture Organization of the United Nations (FAO), and the European Union (EU) to launch a five-year project that will improve the contribution of Uganda’s forestry sector to both its economy and environment by ensuring a sustainable supply of legal wood raw materials from planted forests.
The €15 million (about shs64.5 billion) project also seeks to enhance the processing capacity and market demand for wood products and improve access to affordable finance.
Speaking during the launch at Kigo Carpentry Village in Kigo, Wakiso district, Leonidas Hitimana,the Project Manager from FAO said it rotates around three pillars including the management of existing plantations, upgrading machinery and equipment to improve efficiency and reduce losses as well as well as linking SMEs and cooperatives to sources of finance.
“We want to focus on managing existing plantations, assessing available resources, and identifying niche markets with specific requirements but also supporting certification, as it’s an area that deserves particular attention,” Hitimana said.
Abebe Haile-Gabriel, the FAO Assistant Director-General and Regional Representative for Africa, said the project will help create sustainable wood-based value chains, addressing challenges such as productivity, process improvement, and market access.
“The challenges of selling raw products, improving processes and getting markets to be profitable will be addressed. Because of this project, a viable business can become profitable and part of the profits used to expand the business. Because the business is viable, it can hired skilled labour, pay better, make profits, re-invest and expand,” Abebe said.
Sanne Williems, the EU team leader for green transition and private sector said where the European Union has for many years supported the establishment of plantations as a solid foundation for forestry cover, they have realised that planting trees is just the first step in a long journey.
“To ensure the sustainability of our efforts, we need to focus on the rest of the value chain, namely the processing of wood. It's time to take our support to the next level by investing in the development of wood processing companies, improving the quality of wood products, and increasing the export volumes of timber. As the saying goes, "you can't build a house without a strong foundation," and in this case, our foundation is the sustainable management of forests,” Williems said.
She noted that the five year project will promote sustainable practices in Uganda's forestry sector.
“This project is aimed at facilitating investments for wood processing companies, which will result in increased export volumes of timber and higher production of quality wood products for the local market. It's a win-win situation, where local communities benefit from economic opportunities, and the environment benefits from sustainable forestry practices.”
She said that traditional financing models may not be sufficient to support the growth of sustainable wood value chains, noting that alternative financing mechanisms, such as impact investing, green bonds, and carbon financing, will play a crucial role in bridging the funding gap under this project,
“ These innovative financing models can provide access to capital for small and medium-sized enterprises, community-led initiatives, and other stakeholders that may not have access to traditional financing channels. By leveraging alternative financing, we can unlock new opportunities for sustainable forestry and wood processing, while also promoting economic growth, job creation, and environmental conservation.”
The EU representative said the program is also linked to the EU Global Gateway, a strategic initiative that plays a crucial role in supporting sustainable value chains worldwide.
The Permanent Secretary in the Ministry of Water and Environment, Alfred Okot Okidi said the project will bring together all stakeholders in the wood value chain.
“The project will allow us improve the wood products’ capacity due to training and will also unlock additional financing for everybody involved in the value chain,” he said.