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Kampala, Uganda | THE INDEPENDENT | More than 90 small and medium-sized enterprises (SMEs) in Uganda’s wood industry have begun a four-month business incubation programme aimed at improving competitiveness, strengthening value addition and positioning the country’s forestry sector for greater economic returns.
The programme, launched by the Food and Agriculture Organization of the United Nations (FAO), targets businesses across the wood value chain, from sawmillers and timber dealers to carpentry workshops, furniture manufacturers, joinery businesses, transporters and enterprises turning wood waste into commercial products.
The initiative comes against the backdrop of a sector that continues to grapple with limited access to affordable finance, regulatory uncertainty and constrained access to high-value export markets despite growing demand for sustainably produced wood products.
Over the next four months, participating enterprises will receive business coaching, mentorship and advisory support in financial management, business planning, market access, investment readiness, product development, cost management and profitability. The objective, FAO says, is to build stronger businesses capable of creating jobs while improving the efficiency and sustainability of Uganda’s wood industry.
Leonidas Hitimana, FAO Uganda’s Forestry Team Lead, said the programme is intended to help enterprises realise the largely untapped potential within the country’s forestry sector.
“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.
The programme is also expected to improve enterprises’ ability to attract investment, expand into new markets and increase the production of higher-value wood products instead of relying largely on raw timber sales.
Representing the European Union Delegation to Uganda, Jalia Kobusinge, Adviser for Sustainable Development, said investing in sustainable forest-based value chains is critical not only for protecting forests but also for supporting livelihoods and climate resilience.
“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.
Government officials say strengthening businesses within the forestry value chain is consistent with Uganda’s industrialisation agenda, which seeks to increase value addition and improve the competitiveness of local enterprises.
Representing the Permanent Secretary at the Ministry of Water and Environment, Forest Officer Irene Nanyondo described the initiative as a pathway for enterprises seeking to transition from informal businesses into more competitive commercial operations.
“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.
The incubation programme is being implemented under the Sustainable Wood-Based Value Chains project, with funding from the European Union and the Kingdom of Denmark.
