Tanzania’s efforts to build a sustainable and inclusive green economy have received a major boost following the unveiling of 14 innovative Micro, Small and Medium Enterprises (MSMEs) under the UNDP-supported GreenCatalyst Initiative, alongside the launch of a second round of catalytic funding aimed at expanding green entrepreneurship across the country.
The initiative, implemented by the United Nations Development Programme (UNDP) Tanzania in partnership with the Government of Finland through the FUNGUO Innovation Programme, was officially unveiled in Njombe, bringing together government officials, development partners and private sector stakeholders committed to advancing climate-smart economic growth.
Speaking during the event, Mufindi District Commissioner Dr. Linda Salekwa commended UNDP and the Government of Finland for their continued support in strengthening local enterprises, noting that the initiative aligns with Tanzania’s broader development agenda of promoting youth and women empowerment while ensuring environmental sustainability.
She said the government remains committed to creating an enabling environment for MSMEs to thrive and contribute meaningfully to economic transformation, particularly in rural areas where natural resources present significant opportunities for value addition and job creation.
The FUNGUO Programme, co-funded by the European Union, the United Kingdom’s Foreign, Commonwealth and Development Office (FCDO), and the Government of Finland, is designed to support innovative businesses that leverage Tanzania’s natural resources in a sustainable manner, particularly within forestry value chains.
UNDP Deputy Resident Representative John Rutere said Tanzania is richly endowed with natural resources, especially forests, which if properly harnessed, can drive inclusive economic growth while preserving the environment for future generations.
He noted that the GreenCatalyst Initiative is helping to bridge critical gaps by connecting entrepreneurs with financing, skills development and market access.
Finland reaffirmed its commitment to supporting Tanzania’s green growth agenda, emphasizing that investments in sustainable forestry and innovation are key to unlocking opportunities for youth and women while strengthening climate resilience and inclusive development.
According to FUNGUO Programme Manager Joseph Manirakiza, the newly launched second call for catalytic grant funding will remain open until 31 May 2026, targeting early-stage and scaling enterprises operating within Tanzania’s forestry value chain.
He said priority will be given to youth-led, women-led and inclusive businesses, particularly those operating in Iringa, Njombe, Ruvuma and Lindi regions.
He added that focus areas include wood processing, eco-friendly products, charcoal alternatives, joinery and furniture, beekeeping, bamboo innovations, essential oils and digital forestry services, all aimed at unlocking green business opportunities and stimulating rural economic transformation.
The unveiling of the 14 MSMEs marks a key milestone in the programme’s first phase, which attracted 160 applications and resulted in the selection of enterprises working in areas such as eco-friendly wood processing, honey production, bamboo products and digital forestry solutions.
More than TZS 1 billion has already been disbursed in grants, complemented by technical assistance and capacity building support.
Beneficiaries of the first round are already contributing to job creation, improved livelihoods and sustainable forest management, demonstrating the potential of green innovation in driving community-level economic transformation.
The GreenCatalyst Initiative continues to position itself as a strategic platform for advancing Tanzania’s green economy by supporting innovation, strengthening entrepreneurship ecosystems and promoting responsible use of natural resources.
