Forestry sector set for major transformation through Finland deal

Dar es Salaam. Tanzania’s forestry sector is poised for a significant transformation as the government seeks to translate long-standing bilateral relations into tangible jobs and value addition through enhanced private-sector collaboration with Finland.

Speaking during the Finnish Forest Day 2026, the Director of Forestry and Beekeeping in the Ministry of Natural Resources and Tourism, Mr Daniel Pancraas, stated that the initiative aligns perfectly with the nation’s development priorities.

“Tanzania’s forestry sector holds significant untapped potential, and Finland has been among our most consistent and constructive partners in realising it,” said Mr Pancraas.

He added that direct business engagement is exactly what is needed to translate shared ambitions into sustainable growth and industrial opportunities.

The event, themed “Doing Business with Finland,” was organised by the Embassy of Finland in partnership with the United Nations Development Programme (UNDP) Tanzania through the FUNGUO Innovation Programme.

It served as a platform to launch the Tanzania Forest Sector Investment Guide, aimed at attracting more commercial interest into the industry.

Finland’s Ambassador to Tanzania, Ms Theresa Zitting, emphasised that the future of the bilateral relationship rests on the strength of its commercial ties.

“Strong business partnerships are essential for unlocking the full potential of Tanzania’s forestry sector,” she said, noting that the forum provided a unique opportunity for innovators and investors to identify practical areas for collaboration.

Over the past decade, Finland has invested approximately €45 million (Sh136.3 billion) into the sector, focusing on sustainable management, skills development, and innovation.

This commitment is further bolstered by the Sh61 billion FORLAND Project and the #GreenCatalyst Initiative, which has already channelled over Sh1 billion into 14 local enterprises.

Highlighting the importance of moving beyond diplomatic introductions, the Deputy Chief Executive Officer of Finnfund, Minnamari Marttila, said the engagement allows companies to build meaningful commercial relationships through technology transfer and long-term cooperation.

On the innovation front, the FUNGUO Programme Manager, Mr Joseph Manirakiza, noted that entrepreneurs require more than just capital to succeed.

“Innovation thrives when entrepreneurs have access not only to financing, but also to networks, markets, and partnerships,” he remarked, adding that the forum provided the necessary scale for local green startups.

Among the local businesses benefiting from this exchange is Wazo Tanzania, East Africa’s first manufacturer of cross-laminated timber (CLT).

The company’s founder and CEO, Mr Musa Malick, hailed the platform for showcasing the country’s potential in advanced timber technologies.

“The exchange of knowledge with Finnish companies is invaluable as we continue scaling innovative solutions for the region,” said Mr Malick.

The event also featured services from Finnpartnership, which opened new doors for Tanzanian firms to access co-financing mechanisms designed to support international business growth.

The 2026 Finnish Forest Day reaffirmed that sustainable forestry requires a robust ecosystem of market linkages and partnerships.

By bridging the gap between Finnish expertise and Tanzanian resources, both nations aim to ensure that the forestry sector becomes a cornerstone of environmental sustainability and economic prosperity.

Finland remains committed to deepening this cooperation, ensuring that innovative businesses have the tools to deliver a lasting impact on the ground.