Tanzania’s Forest Thinking Tanks Root for Increased Value Addition to Forest Products
Trunks of trees cut and stacked in the foreground green forest in the background with sun rays
Tanzania’s timber industry is experiencing a much-needed economic shift from a traditional focus on timber to value-added products, with plywood and veneer among the key products being manufactured.
This positive development continues to attract an influx of investment from different countries, including China and India.
Speaking during Innovation Week Tanzania 2026, the sector’s thinking tanks urged Tanzania to increase value addition to forest products by shifting from exporting raw timber to producing high-value goods to boost economic growth.
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 its 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 processed to maximise returns,” he said.
According to him, carbon-related activities, including measuring and monitoring forests, also offer emerging opportunities for technology-driven youth.
Beyond technology, Prof. Ngaga noted that 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.
He added that the transformation presents new opportunities for young people, particularly those combining forestry expertise with technology and digital solutions.
“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,” the don observed.
On his part, the 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 stated that some opportunities require minimal capital, while professionals can also provide advisory services on tree species selection, management and production.
“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,” he said.
The Coordinator for Development Cooperation and Forestry Programmes at the Embassy of Finland in Tanzania, Mr William Nambiza, described forestry as “green gold,” noting that the sector contributes between three and five per cent to the national Gross Domestic Product (GDP) and provides up to 500,000 jobs.
He, however, 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.
Mr Nambiza informed that Finland has supported Tanzania’s forestry sector for over 50 years through human resource development, technology transfer and sustainable forest management.
Increasing value addition, he noted, could significantly boost employment and income, noting that only 35 to 40 per cent of a tree is currently utilised.