Finland, UNDP ink €2 million deal to boost green innovation in Tanzania’s forestry sector
What you need to know:
- The initiative aims to support early-stage Micro, Small, and Medium Enterprises (MSMEs) and enterprise support organisations (ESOs) in the forestry value chain
Dar es Salaam. The government of Finland and the United Nations Development Programme (UNDP) have signed a €2 million (approximately Sh6 billion) agreement to support Tanzania’s forestry sector through the GreenCatalyst Initiative a two-year programme focused on green innovation and climate resilience.
Signed on April 15, 2025 in Dar es Salaam by Finland’s Ambassador to Tanzania, Theresa Zitting, and UNDP Resident Representative, Shigeki Komatsubara, the agreement makes Finland a new partner in the FUNGUO Innovation Programme.
The initiative aims to support early-stage Micro, Small, and Medium Enterprises (MSMEs) and enterprise support organisations (ESOs) in the forestry value chain.
Youth- and women-led ventures in underserved communities will be prioritised to promote low-emission development and sustainable livelihoods.
“We are proud to support entrepreneurship in the forestry sector – especially for women and youth. A sustainable and inclusive forestry sector will create jobs and income for Tanzanians,” said Ambassador Zitting.
Mr Komatsubara added: “Through GreenCatalyst, we are building pathways for innovation to address environmental challenges while enabling communities to thrive economically.”
Finland joins existing FUNGUO partners, including the European Union and the UK’s Foreign, Commonwealth & Development Office (FCDO), in supporting Tanzania’s growing innovation ecosystem.
Since 2021, FUNGUO has supported over 2,200 startups and innovative MSMEs, funded 61 ventures, and contributed to nearly 5,000 new jobs—many filled by youth and women.
The programme also runs the YouthIgnite Student Founders Fellowship, supporting student-run businesses from ten universities. So far, 300 students have received venture-building training, with 20 ventures securing seed funding.
The GreenCatalyst Initiative will provide catalytic funding to forestry-focused MSMEs, build entrepreneurial and digital skills for youth and women, and strengthen institutions such as the Forestry and Wood Industry Training Centre (FWITC).
It also seeks to improve market access, unlock finance, and generate data to inform green investment policies.
“The agreement comes at a time when Tanzania is stepping up efforts to boost innovation in the face of growing environmental and economic challenges, particularly in sectors with untapped potential such as forestry,” Programme Manager of FUNGUO, Joseph Manirakiza.
