The United Nations Development Programme (UNDP) Tanzania has unveiled 14 innovative MSMEs under the Finland-supported GreenCatalyst Initiative, marking a significant advancement in sustainable entrepreneurship within Tanzania’s forestry sector. The selected enterprises will receive over 1 billion Tanzanian shillings in grants alongside technical assistance to drive green innovation, job creation, and environmental sustainability.
The unveiling ceremony, held in the Southern Highlands region under the theme “Catalysing Innovation & Entrepreneurship in the Forestry Value Chain,” brought together key stakeholders and was presided over by Mufindi District Commissioner Linda Salekwa. The event also marked the launch of a second round of catalytic grant funding applications, open until May 31, 2026.
FUNGUO, UNDP’s flagship innovation programme co-funded by the European Union, the UK’s Foreign, Commonwealth & Development Office (FCDO), and the Government of Finland, aims to transform Tanzania’s forestry value chains through sustainable business practices.
“We commend the government of Finland and UNDP for this impactful initiative,” said District Commissioner Salekwa during the event. She emphasized that the Tanzanian government remains committed to fostering an enabling environment for these businesses to flourish, particularly in the southern highlands region where forestry resources are abundant.
The selected enterprises emerged from a competitive pool of 160 applications following a rigorous multi-stage evaluation process conducted by an independent investment committee. These businesses represent diverse segments of the forestry value chain, including eco-friendly wood processing, beekeeping and honey production, bamboo-based products, essential oils, and digital forestry services.
Joseph Manirakiza, UNDP’s FUNGUO Programme Manager, outlined that the second call for applications will prioritize innovative, inclusive enterprises operating in or connected to Iringa, Njombe, Ruvuma, and Lindi regions. The initiative particularly welcomes businesses focusing on wood processing, eco-products, charcoal alternatives, joinery and furniture, beekeeping, bamboo innovations, essential oils, and digital forestry services.
UNDP’s Deputy Resident Representative, John Rutere, highlighted the strategic importance of the forestry sector for Tanzania. “Tanzania is blessed with abundant natural resources, particularly our forests. These resources are not only vital for environmental sustainability but also present significant opportunities for economic growth, innovation, and employment,” he stated.
William Nambiza, representing Finland, reaffirmed his country’s commitment to advancing sustainable forestry value chains in Tanzania. “By supporting initiatives like #GreenCatalyst, we are helping unlock opportunities for young people and women, ensuring that the sector contributes meaningfully to employment, innovation, and inclusive economic growth, particularly in the Southern Highlands,” he noted.
The GreenCatalyst initiative strategically focuses on forest-rich regions of Tanzania, where sustainable forestry practices can create significant economic opportunities while preserving critical natural resources. The program specifically aims to boost rural employment and unlock investment in green MSMEs by providing both financial support and technical expertise.
Tanzania’s forestry sector has tremendous potential for sustainable development, with forests covering approximately 48.1 million hectares or 54 percent of Tanzania’s land area. However, the country faces challenges including deforestation at an estimated rate of 400,000 hectares annually, driven by agricultural expansion, charcoal production, and illegal logging.
By fostering innovation in sustainable forestry practices, the GreenCatalyst initiative addresses these environmental challenges while creating economic opportunities. The selected enterprises demonstrate how business models can align with conservation goals, potentially creating a blueprint for sustainable development across other sectors.
Eligible businesses interested in the second round of funding are encouraged to submit applications through the www.Funguo.org website before the May 31, 2026 deadline.