Uganda Bankers’ Association, FAO, and EU-Uganda move to unlock financing for sustainable wood sector growth
Wilbrod Owor, Executive Director of the Uganda Bankers’ Association, emphasized the transformative potential of the sector. “This is a once-in-a-generation opportunity to drive industrialization, scale private credit, and create sustainable livelihoods,” he stated in his closing remarks.
In a landmark effort to promote sustainable economic growth, the Uganda Bankers’ Association (UBA), in partnership with the Food and Agriculture Organization (FAO) of the United Nations and with support from the Delegation of the European Union to Uganda (EU-Uganda), recently convened key stakeholders from the banking sector to explore high-value opportunities in Uganda’s forestry and wood value chains.
The workshop, held as part of FAO’s Sustainable Wood-Based Value Chains Project, aimed to strengthen technical and financial capacities, improve access to finance, and foster sustainable practices among wood-based enterprises in Uganda. Funded by the European Union, the initiative seeks to drive industrialization while ensuring environmental sustainability.
Addressing SME Needs and Financial Innovation
During the stakeholder engagement on Financing Uganda’s Sustainable Wood Sector, participants reviewed the needs of small and medium enterprises (SMEs), discussed tailored financial instruments, and strategized on unlocking sustainable growth for wood-based businesses.
Wilbrod Owor, Executive Director of the Uganda Bankers’ Association, emphasized the transformative potential of the sector. “This is a once-in-a-generation opportunity to drive industrialization, scale private credit, and create sustainable livelihoods,” he stated in his closing remarks.
Owor urged financial institutions to adopt a more inclusive approach: “The financial sector must shift from product-first thinking to people-first solutions. We must design finance that matches seasonal cash flows across primary production, processing, and post-harvest stages.”
Key Priorities: Blended Finance, Risk Profiling, and Technical Support
Highlighting critical enablers for growth, Owor pointed to the Bank of Uganda’s recognition of guarantees as credit instruments and stressed the need for blended finance, sector classification, and risk profiling to de-risk investments. Technical support, he noted, will be essential in attracting large-scale private investment.
The UBA reaffirmed its commitment to collaborating with regulators, development partners, and member banks to translate these opportunities into inclusive, climate-smart growth. The forestry and wood sector holds vast potential for job creation, sustainable trade, and environmental conservation, aligning with Uganda’s broader economic and climate resilience goals.
A Green Future for Uganda’s Economy
With FAO’s Sustainable Wood-Based Value Chains Project paving the way, stakeholders are optimistic about a future where Uganda’s wood enterprises thrive sustainably—backed by innovative finance, policy support, and eco-friendly practices.
The UBA’s engagement marks a pivotal step toward securing long-term investment in one of Uganda’s most promising yet underdeveloped sectors, ensuring that economic gains go hand-in-hand with environmental stewardship.
