Tanzania is expanding opportunities in its wood and forest products sector, with stakeholders calling for greater processing of timber and other forest resources to create more value within the country. The move is opening new opportunities to strengthen the timber industry, support local manufacturing and increase the sector’s contribution to economic growth.
Prof Yonika Ngaga, Forest and Environmental Economics Specialist at Sokoine University of Agriculture (SUA), said Tanzania can generate greater economic returns by moving beyond the export of raw timber and developing finished wood products such as furniture. Greater processing would allow more value to remain within the country while supporting the expansion of local wood manufacturing.
Tanzania is already moving towards a broader range of value-added wood products, including plywood and veneer, attracting investment from countries such as China and India. This development is creating opportunities for manufacturers, processors and other businesses to expand Tanzania’s domestic wood value chain and serve growing markets for processed forest products.
The forestry sector is also opening opportunities for young entrepreneurs and technology-driven businesses. Prof Ngaga highlighted growing demand for traceable forest products, creating scope for digital systems that can track the origin, harvesting and transportation of timber.
Mr Daudi Kilonzo, Co-Founder and Managing Director of Ubora Forestry Solutions, said investment opportunities exist throughout the forestry value chain, from seeds and tree planting to timber processing and furniture manufacturing. He also called for greater investment in skills development, modern machinery and product finishing to help local wood manufacturers improve their competitiveness.
According to Mr William Nambiza, Coordinator for Development Cooperation and Forestry Programmes at the Embassy of Finland in Tanzania, Finland has supported Tanzania’s forestry sector for more than 50 years through skills development, technology transfer and sustainable forest management.
The sector contributes between 3 and 5 per cent of Tanzania’s GDP and provides up to 500,000 jobs, while only 35 to 40 per cent of a tree is currently utilised. Increasing the use of wood resources through efficient processing could therefore create more jobs, reduce waste and further strengthen Tanzania’s growing wood industry.
