Dar es Salaam — THE United Nations Development Programme (UNDP) Tanzania, through its flagship FUNGUO Innovation Programme, has officially unveiled 14 innovative Micro, Small, and Medium Enterprises (MSMEs) under the Finland-supported GreenCatalyst Initiative.
This marks a key milestone in advancing sustainable entrepreneurship and job creation within Tanzania's forestry value chains. The FUNGUO programme is co-funded by the European Union, the UK's Foreign, Commonwealth & Development Office (FCDO), and the Government of Finland.
The unveiling event, themed "Catalysing Innovation & Entrepreneurship in the Forestry Value Chain," was graced by the Mufindi District Commissioner, Hon. Linda Salekwa and brought together stakeholders from across the Southern Highlands and beyond to showcase the selected enterprises and highlight emerging investment opportunities within the sector.
The launch also marked the official launch of the second call for catalytic grant funding applications, inviting a new cohort of green innovators to apply.
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The DC expressed appreciation for the initiative and pledged continued support from the government by saying, "We commend the government of Finland and UNDP for this impactful initiative."
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She further noted that the government is committed to creating an enabling environment that allows these businesses to grow, thrive, and contribute to local economic development and environmental sustainability, especially in the southern highlands.
UNDP's FUNGUO Programme Manager, Joseph Manirakiza, emphasized that the second call for applications open until 31 May 2026, seeks to support early-stage and scaling Tanzanian MSMEs in the forestry value chain through catalytic grant financing to unlock green businesses, drive jobs, and transform rural economies.
He noted priority will be given to innovative, youth-, women- and PWD-inclusive enterprises operating in or linked to Iringa, Njombe, Ruvuma, and Lindi, including sectors such as wood processing, eco-products, charcoal alternatives, joinery and furniture, beekeeping, bamboo innovations, essential oils, and digital forestry services.
Highlighting the broader vision behind the initiative, the UNDP's Deputy Resident Representative, John Rutere, said, "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."
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Reaffirming Finland's commitment to supporting Tanzania's forestry sector, Mr. William Nambiza stated that "Finland remains committed 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.
#GreenCatalyst is a special initiative under FUNGUO, UNDP's flagship innovation programme co-funded by the European Union, FCDO, and the Government of Finland. With dedicated support from Finland, the initiative catalyses innovation and sustainable entrepreneurship across forest-based value chains while boosting rural employment and unlocking investment in green MSMEs.
From the 2025 Applications for funding, out of 160 applications received, 14 enterprises were selected following a rigorous multi-stage evaluation process led by an independent investment committee, receiving over1bn/- in grants and complemented with continuous technical assistance. These businesses represent a diverse range of innovations, including eco-friendly wood processing, beekeeping and honey production, bamboo-based products, essential oils, and digital forestry services. The selected investees are already demonstrating strong potential to create jobs, improve livelihoods, and contribute to sustainable forest management at the community level.
Innovative businesses operating within the forestry value chain in Njombe, Iringa, Ruvuma, and Lindi are encouraged to apply for the #GreenCatalyst catalytic grant funding through the www.Funguo.org website before the 31 May 2026 deadline.
