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| The Mufindi District Commissioner, Dr. Linda Salekwa (centre), alongside other dignitaries, applauds as UNDP and the Government of Finland unveiled 14 Micro, Small, and Medium Enterprises (MSMEs) under the Finland-supported #GreenCatalyst initiative and also launched the second call for funding. The event took place in Njombe. |
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| FUNGUO Programme Manager, Joseph Manirakiza (left), speaks during a dialogue session as UNDP and the Government of Finland unveiled 14 Micro, Small, and Medium Enterprises (MSMEs) under the Finland-supported #GreenCatalyst initiative. |
Njombe, 14 April 2026 - Tanzania’s journey toward sustainable economic growth has received a significant boost as the United Nations Development Programme (UNDP) Tanzania, in partnership with the Government of Finland, unveiled 14 innovative Micro, Small, and Medium Enterprises (MSMEs) under the #GreenCatalyst Initiative.
Implemented through UNDP’s flagship FUNGUO Innovation Programme, the initiative represents a major milestone in advancing green entrepreneurship, job creation, and sustainable development within Tanzania’s forestry value chains.
Driving Green Innovation in Tanzania
The FUNGUO programme—co-funded by the European Union, the UK’s Foreign, Commonwealth & Development Office (FCDO), and the Government of Finland—aims to unlock the potential of Tanzania’s natural resources by supporting innovative, environmentally conscious businesses.
The unveiling event, held under the theme “Catalysing Innovation & Entrepreneurship in the Forestry Value Chain,” brought together key stakeholders from the Southern Highlands and beyond. It was officiated by Mufindi District Commissioner, Dr. Linda Salekwa, who commended the initiative for its tangible impact.
“We commend the Government of Finland and UNDP for this impactful initiative,” she noted, reaffirming the government’s commitment to creating an enabling environment for MSMEs to grow and contribute to both economic development and environmental sustainability.
She further emphasized the importance of empowering youth and women entrepreneurs, aligning with Tanzania’s broader ambition of building a trillion-dollar economy.
Second Call for Green Funding Opens
In a move aimed at expanding impact, the launch also marked the official opening of the second call for catalytic grant funding applications.
According to FUNGUO Programme Manager Joseph Manirakiza, applications are open until 31 May 2026, targeting early-stage and scaling MSMEs within the forestry value chain.
Priority will be given to enterprises that are:
- Youth-led, women-led, or inclusive of persons with disabilities
- Operating in or linked to Iringa, Njombe, Ruvuma, and Lindi
- Focused on sectors such as:
- Wood processing
- Eco-products
- Charcoal alternatives
- Joinery and furniture
- Beekeeping
- Bamboo innovations
- Essential oils
- Digital forestry services
The goal is to unlock green business opportunities, drive employment, and transform rural economies.
Turning Natural Wealth into Economic Opportunity
UNDP Deputy Resident Representative John Rutere highlighted Tanzania’s vast natural resource base, particularly its forests, as a key driver of future economic growth.
“Tanzania is blessed with abundant natural resources… The challenge is leveraging this wealth responsibly to create jobs while safeguarding the environment,” he said.
Through #GreenCatalyst, UNDP is bridging critical gaps by linking innovation with financing, skills development, and market access—helping transform ideas into viable, income-generating businesses at the community level.
Finland Reaffirms Commitment
Reinforcing international support, Finland reiterated its commitment to Tanzania’s sustainable forestry sector.
“By supporting initiatives like #GreenCatalyst, we are unlocking opportunities for youth and women while driving inclusive economic growth,” said William Nambiza.
The initiative complements the Finland-funded Forestry, Land Use and Value Chains (FORLAND) Project, aligning with Tanzania’s national priorities on climate resilience, sustainable resource management, and inclusive growth.
Impact So Far
The first round of funding has already demonstrated strong results:
- 160 applications received
- 14 MSMEs selected through a rigorous evaluation process
- Over TZS 1 billion disbursed in grants
- Ongoing technical assistance and capacity building provided
The selected enterprises span diverse innovations, including eco-friendly wood processing, honey production, bamboo products, essential oils, and digital forestry solutions.
These businesses are already showing strong potential to:
- Create jobs
- Improve livelihoods
- Promote sustainable forest management
How to Apply
Innovative MSMEs operating within Tanzania’s forestry value chain are encouraged to apply for the second round of #GreenCatalyst funding.
Applications can be submitted through the FUNGUO programme website [www.Funguo.org] before the 31 May 2026 deadline.
Final Thought:
The #GreenCatalyst Initiative is more than just a funding programme—it is a strategic investment in Tanzania’s green economy. By empowering MSMEs, fostering innovation, and promoting sustainable use of natural resources, the initiative is helping shape a resilient and inclusive economic future.
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