Unlocking finance for sustainable and inclusive wood value chains
A dialogue toward collaboration on innovative financing opportunities and mechanisms to promote sustainable wood production and consumption in East Africa, including smallholder forest and farm producer organizations
6 November 2023
(CIFOR-ICRAF, Nairobi, Kenya)
An event to be organized by FAO and the Forest and Farm Facility together with the Government of Kenya, and with the technical collaboration of the World Agroforestry Centre (ICRAF), the Kenya Forest Service (KFS), The Kenya Forest Research Institute (KEFRI), the Swedish Embassy of Kenya, and Gatsby Africa Foundation.
The East Africa region presents enormous opportunities to promote sustainable production and consumption of wood products. On the production side, for example, the Kenya Government has committed to plant 15 billion trees to achieve 30% of tree cover by 2032 (at an estimated cost of Sh600 billion, about USD 4.5 billion). On the processing side, improvements in sustainability and efficiency are being sought in the region, and especially in Uganda, where planted forests could potentially play an important role in the development of a regional forest sector. On the end market side, various initiatives are underway to promote the use of wood-based products instead of more carbon intensive materials in sectors such as building and construction. The coordinated support to various segments of wood value chains, from wood production to processing to the development of markets for sustainable wood can have significant positive effects on the environment, biodiversity and development.
Yet, scaling up such value chains requires further investments, both public and private. Several obstacles prevent larger investments to reach forest value chains in general, and small forest and farm producers and SMEs in particular: the perception of forestry as a high-risk business, informal and fragmented value chains, unattractive investment conditions (e.g., weak governance, inadequate infrastructure, high transaction costs, lack of financial literacy in the sector), and limited capacity by SMEs and local market participants to attract and access finance (lack of bankable projects).
To address these challenges, FAO and the Forest and Farm Facility (FFF) are organizing with CIFOR-ICRAF, the Kenya Forestry Research Institute (KEFRI) and the Kenya Forest Service (KFS) the event “Unlocking finance for sustainable and inclusive wood value chains: A dialogue toward collaboration on innovative financing opportunities and mechanisms to promote sustainable wood production and consumption in East Africa, including smallholder forest and farm producer organizations.”
Objectives of the event
Strategic elements and concrete activities identified and agreed to scale up results, accelerate the mobilization and sustainability of financing opportunities to promote sustainable wood production and consumption in East Africa.
Linkages to the International Congress on Planted Forests 2023
The proposed event will complement the ICPF sessions, in particular: “New business models: investing into wood production, restoring ecosystem services, and enhancing livelihoods” which is expected to be organized for 7 November, the first day of the conference.
The day will cover: