Tanzania told to add value to forest products

DAR ES SALAAM: TANZANIA has been urged to increase value addition in forest products by shifting from exporting raw timber to producing high-value goods to boost economic growth.

The call was made on Wednesday during Innovation Week Tanzania 2026, where stakeholders highlighted untapped opportunities in the forestry value chain.

Sokoine University of Agriculture (SUA) forest and environmental economics specialist, Prof Yonika Ngaga, said greater value could be generated by processing timber into finished products such as furniture instead of exporting it in basic form.

“If you cut a tree and turn it into timber before exporting it, you have not added enough value. That timber should be used to make furniture and further finished to maximise returns,” he said.

Prof Ngaga noted that the sector is gradually shifting from a traditional focus on timber to products such as plywood and veneer, a move attracting investment from countries including China and India.

He said the transformation presents new opportunities for young people, particularly those combining forestry expertise with technology and digital solutions. According to him, growing demand in international markets for traceable products has created space for innovation, including systems that track the origin, harvesting and transportation of forest products.

“This is a new area that requires systems to meet external market requirements. It is a major opportunity for young innovators,” he said.

He added that carbon-related activities, including measuring and monitoring forests, also offer emerging opportunities for technology-driven youth. Beyond technology, Prof Ngaga said young Tanzanians could invest in less capital-intensive ventures such as seedling production and timber drying, noting that the country currently produces only about half of the seeds required to meet demand.

“This means there is a ready market for quality seedlings if they are well produced and managed,” he said.

However, he cited weak linkages between research and end-users as a key challenge, calling for stronger collaboration among researchers, extension officers, policymakers and industry players. He also stressed the need for improved quality standards and greater consumer awareness to enhance the competitiveness of local forest products.

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Co-Founder and Managing Director of Ubora Forestry Solutions, Mr Daudi Kilonzo, said the forestry sector offers investment opportunities across the entire value chain, from seeds and planting to processing and furniture manufacturing. He noted that some opportunities require minimal capital, while professionals can also provide advisory services on tree species selection, management and production.

Mr Kilonzo further called for increased investment in skills development, modern machinery and product finishing to enable local manufacturers to compete with imports.

Coordinator for Development Cooperation and Forestry Programmes at the Embassy of Finland in Tanzania, Mr William Nambiza, said Finland has supported Tanzania’s forestry sector for over 50 years through human resource development, technology transfer and sustainable forest management.

He said Finland is currently supporting innovative forestry businesses through the Green Catalytic Fund, which has allocated about two million euros to expand enterprises and improve market access. Mr Nambiza described forestry as “green gold,” noting that the sector contributes between three and five per cent to the national Gross Domestic Product and provides up to 500,000 jobs.

He said increasing value addition could significantly boost employment and income, noting that only 35 to 40 per cent of a tree is currently utilised, leaving substantial waste. “Processing more of the resource into valuable products will create jobs and increase the sector’s contribution to the economy,” he said.

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