Uganda is seeking to increase access to financing for its forestry and wood industry, with financial institutions being equipped with specialised skills to assess investment opportunities and develop suitable financial products for businesses in the sector.
The initiative follows a market and institutional assessment conducted by the Uganda Institute of Banking and Financial Services (UIBFS) in partnership with the Food and Agriculture Organization of the United Nations (FAO), with funding from the European Union.
The assessment examined the readiness and capacity of financial institutions to finance the forestry and wood value chain, identifying existing financing opportunities, institutional capacity, sector-specific risks, challenges and financing gaps.
Based on the findings, UIBFS developed a specialised Sustainable Forestry and Wood Value Chain Financing Curriculum intended to strengthen the ability of banks and other financial service providers to finance sustainable forestry and wood-based enterprises.
Speaking at a workshop to validate the assessment report and curriculum, UIBFS Chief Executive Officer Goretti Masadde said appropriate financing is necessary to help smallholder tree farmers move from subsistence production to commercially viable enterprises.
“Uganda’s forestry and wood sector represents more than an environmental opportunity. It is a powerful driver of sustainable investment, enterprise growth, job creation and economic transformation,” Masadde said.
She added that the financing opportunity goes beyond trees and timber to cover the entire value chain.
“The opportunity before us is much bigger than financing trees or timber. It is about financing an entire value chain and unlocking economic value,” she said.
Masadde said specialised financial expertise and innovative financing solutions could empower smallholder tree farmers, strengthen small and medium enterprises, modernise wood-processing businesses, expand market opportunities and improve Uganda’s export competitiveness.
She further emphasised that the curriculum should translate into practical financial sector competencies and investment solutions that deliver measurable impact, support sustainable livelihoods and promote import substitution.
Meanwhile, FAO Sector Head of Forestry, Climate and Environment in Uganda Leonidas Hitimana called for a shift from traditional funding approaches towards sustainable, long-term financing for the forestry sector.
Hitimana commended UIBFS for developing the specialised curriculum but said its success would depend on continuous training, practical application and sustained engagement with financial institutions.
He also acknowledged the support of the European Union and Denmark, alongside the Government of Uganda, in advancing sustainable forestry development and strengthening the country’s wood value chain.
His remarks highlighted the need to equip financial institutions with the knowledge and capacity to turn forestry investment opportunities into sustainable financing solutions that support long-term sector growth.
On his part, European Union Delegation to Uganda Programme Officer Johan Tejpar said limited access to financing remains one of the major obstacles to the growth of Uganda’s forestry and wood industry.
“Access to finance is one of the key missing links to elevating Uganda’s forestry and wood industry,” Tejpar said.
He called for innovative financing solutions tailored to the unique investment needs of the forestry sector, noting that long investment cycles require financial institutions to adopt financing models that can support sustainable forestry enterprises.
Tejpar also highlighted the European Union’s forestry programme, co-financed with Denmark, which supports reforestation, forest governance, conservation and the development of wood and non-wood forest value chains.
Following the validation exercise, UIBFS will pilot the curriculum before rolling it out to professionals from financial institutions. The training is expected to strengthen the capacity of banks and other financial service providers to develop appropriate financial products and increase financing for sustainable forestry and wood-based enterprises.
