Dar es Salaam, 15 April 2025: In a landmark move to drive inclusive green growth and climate resilience, the Government of Finland and the United Nations Development Programme (UNDP) have signed a €2 million agreement to implement the #GreenCatalyst Initiative– a two-year programme aimed at accelerating innovation in Tanzania’s forestry and natural resources sector.
The agreement was signed today in Dar es Salaam by H.E. Theresa Zitting, Ambassador of Finland to Tanzania, and Mr. Shigeki Komatsubara, UNDP Resident Representative.
To be implemented through the FUNGUO Innovation Programme, #GreenCatalyst will support early-stage, impact-driven Micro, Small, and Medium Enterprises (MSMEs) and enterprise support organizations (ESOs) across forestry value chains. Special attention will be given to youth- and women-led ventures, and those in underserved communities, with a view to promoting low-emission development, sustainable livelihoods, and market access.
“We are proud to support entrepreneurship in the forestry sector – especially for women and youth – through the #GreenCatalyst initiative. A sustainable and inclusive forestry sector will create jobs and income for Tanzanians.” Ambassador Zitting remarked
With this agreement, Finland joins the European Union and the UK’s Foreign, Commonwealth & Development Office (FCDO) as key partner in supporting Tanzania’s growing innovation ecosystem through the FUNGUO Innovation Programme.
“This partnership reflects our shared commitment to unlocking Tanzania’s green enterprise potential. Through #GreenCatalyst, we are building pathways for innovation to address urgent environmental challenges while enabling communities to thrive economically.” Mr. Shigeki Komatsubara, UNDP Resident Representative, emphasized,
Since its launch in 2021, the FUNGUO Innovation Programme has supported over 2,200 startups and innovative MSMEs, investing catalytic funding in 61 ventures, and enabling the creation of nearly 5,000 jobs many for youth and women.
FUNGUO is also fostering innovation in Tanzania’s higher education system through the #YouthIgnite Student Founders Fellowship, which supports student-run ventures from, 10 partner universities. To date 300 students have received venture building training, 20 student-led businesses have accessed seed funding, and 10 university-based innovation hubs have been strengthened.
The #GreenCatalyst initiative will:
The signing of this agreement marks the formal start of preparations toward the full launch of the #GreenCatalyst initiative, which is aligned with Finland’s ongoing support to forest-based livelihoods under its bilateral cooperation with Tanzania.
About FUNGUO Innovation Programme:
FUNGUO, jointly funded by the European Union, the British High Commission, and the United Nations Development Programme (UNDP), is implemented by UNDP Tanzania in partnership with UNCDF. It works closely with the Tanzania Commission for Science and Technology (COSTECH). The European Union’s support for FUNGUO is part of the “Business Environment, Growth and Innovation” (BEGIN) Programme, coordinated by the Ministry of Investment, Industry, and Trade. By addressing the obstacles that hinder innovative impact ventures from scaling, FUNGUO aims to create an enabling environment for innovators, entrepreneurs, and enablers.
