Uganda Launches €15M Drive to Power a Sustainable and Thriving Wood Industry

Posted on : Monday , 5th May 2025

The Government of Uganda, together with the Food and Agriculture Organization of the United Nations (FAO) and the European Union (EU), has launched a transformative five-year project aimed at strengthening Uganda’s forestry sector. Backed by €15 million (approximately UGX 64.5 billion), the initiative aims to secure a steady, sustainable supply of legally sourced wood from planted forests, while driving economic growth and advancing environmental sustainability.

The project prioritizes three key areas: sustainable management of existing plantations, modernization of wood processing technologies, and improved access to finance for small and medium-sized enterprises (SMEs) and cooperatives within the wood value chain. By enhancing plantation productivity and introducing efficient machinery, the sector is poised to reduce losses, improve product quality, and tap into niche markets.

A key goal is to build resilient and sustainable value chains within the wood industry. Strengthening wood processing capacity will increase the production of quality wood products for both local and export markets. This will create business opportunities, enhance profitability, stimulate job creation, and encourage reinvestment in the sector. Certification support will further ensure competitiveness and market confidence.

The initiative also introduces innovative financing models such as impact investing, green bonds, and carbon financing. These mechanisms aim to unlock capital for SMEs, community-led projects, and other stakeholders, accelerating growth and fostering resilience in the sector.

Aligned with the EU’s Global Gateway strategy, the project promotes collaboration across the entire wood industry, enhancing training, access to finance, and sustainability practices. By advancing both processing and commercialization of wood products, the initiative strengthens Uganda’s capacity to meet growing demand while safeguarding forest resources.

Overall, the project sets the foundation for a vibrant, competitive, and environmentally responsible wood sector that delivers lasting economic and ecological benefits for Uganda.