KAMPALA, UGANDA — The Food and Agriculture Organization (FAO), with support from the European Union (EU), has opened a new funding window to help small and medium-sized enterprises (SMEs) in Uganda’s wood-based value chain. The initiative is part of a five-year project aimed at promoting sustainable investments in the sector and helping businesses access financing.
The funding opportunity, titled “Unlocking Finance and Growth Opportunities in Uganda’s Wood-Based Value Chain,” is open to businesses that are formally registered and can provide details on their operations. The deadline for applications is Aug. 29.
According to a call for applications issued by the FAO, businesses must state their number of years in operation, their average revenue, number of employees, and whether they are a cooperative, sole proprietorship, or a limited company. Applicants are also required to submit a summary of their growth strategy and future expansion plans, as well as a description of their sustainable wood sourcing methods.
Zainab Kakungulu, an FAO programs officer, said the project is designed to address barriers that SMEs in the logging and wood manufacturing sectors face in accessing affordable financing. The initiative will provide support through financial literacy and business management advisory services, strengthen the capacity of financial institutions to design tailored products for the sector, and offer blended finance solutions to bridge funding gaps.
Kakungulu noted that studies project a significant increase in wood volume in the coming years. She said an estimated 150,000 to 200,000 hectares of forest plantations established since 2004 are expected to yield nearly two million cubic meters of wood annually by 2030, a more than tenfold increase from current volumes.
“This increase in wood volume presents an opportunity for the country to develop a sustainable wood-based industry,” she said, adding that the goal is to produce higher-value products to meet both domestic and regional market demand.
Eligible activities for the funding include logging and harvesting, sawmilling, and the manufacture of wood products such as furniture and engineered wood. Mass timber construction and the distribution of wood products are also eligible.
