FAO Calls for Sustainable Financing Model to Transform Uganda's Forestry Sector

The Food and Agriculture Organisation (FAO) of the United Nations has urged Uganda to move beyond short-term funding approaches and embrace sustainable, long-term financing models that can unlock the full investment potential of the country's forestry and wood value chain.

Speaking at a high-level workshop in Kampala, Leonidas Hitimana, the FAO sector head of Forestry, Climate and Environment in Uganda, emphasised that strengthening the capacity of financial institutions to understand and support forestry enterprises is essential for the sector's long-term growth.

Beyond Short-Term Interventions

Hitimana noted that Uganda's forestry sector demands more than fleeting funding fixes, calling on stakeholders to build financing mechanisms capable of supporting businesses across the entire wood value chain. He stressed that the real challenge lies not in designing frameworks but in putting them into practice.

"Developing the curriculum is not the end of the work. It is where the real work begins," he said, underscoring the need for continuous training, practical application and sustained engagement with financial institutions.

The workshop, held at Protea Hotel in Kampala, was organised by the Uganda Institute of Banking and Financial Services (UIBFS) in collaboration with the FAO. It brought together representatives from government, financial institutions, development partners, the private sector and academia.

Validating a Specialised Curriculum

Participants reviewed the findings and recommendations of a Market and Institutional Assessment Report and validated a specialised curriculum designed to equip financial institutions with the knowledge and skills needed to finance sustainable forestry enterprises.

Hitimana commended UIBFS for its role in developing the curriculum, while acknowledging the longstanding support of the European Union, Denmark and the Government of Uganda in advancing sustainable forestry development and strengthening the country's wood value chain.

Bridging the Investment Gap

Goretti Masadde, the UIBFS chief executive officer, said Uganda must close the gap between the forestry sector's considerable investment potential and the availability of appropriate financing.

The push for sustainable financing comes as Uganda seeks to balance economic growth in the forestry and wood sector with environmental protection, a challenge that requires coordinated effort from financiers, policymakers and industry players alike.