Funguo Innovation Programme – #GreenCatalyst

Catalytic grant funding for Innovative MSMEs in the Forestry value chain

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#GreenCatalyst is a special initiative funded by the Ministry for Foreign Affairs of Finland under UNDP’s FUNGUO Innovation Programme that aims to promote innovation and sustainability within the forest-based value chains, increase rural employment, and unlock investment in green MSMEs. The call specifically targets innovative Micro, Small, and Medium Enterprises (MSMEs) within the forestry value chain that are led or largely benefit youth, women, and persons with disabilities.

This initiative complements the ongoing Finland-funded FORLAND Project (Forestry, Land Use and Value Chains), and contributes to increasing rural jobs in the forest sector through innovation, skills development, and access to finance.

Overview

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May 31
OrganizerFUNGUO
Website Visit website
Targets Tanzania
Sectors Sector agnostic

Eligibility criteria – What we are looking for?

We are looking for early-stage or scaling MSMEs that:

  • Are registered innovative early-stage ventures, Micro, Small, and Medium Enterprises, with proof of operations or traction; majority owned by Tanzanian citizens.
  • Operate within the forestry value chain (e.g. wood processing, eco-products, charcoal alternatives, joinery or and furniture, beekeeping and bee products, bamboo products innovations, essential oils, digital forestry services etc.).
  • Are led by or significantly engaging youth (18–35), women, and persons with disabilities.
  • Are based in, or with strong business linkages to Iringa, Njombe, Ruvuma and Lindi;
  • Demonstrate innovation, environmental sustainability, and climate-smart solutions.
  • Require catalytic support to improve operations, access markets, expand business or attract investment.

What’s on offer?

Competitively selected ventures will receive:

  • Catalytic grant funding of between TZS 10 million and up to TZS 100 million.
  • Tailored technical assistance, including mentorship, business development support, and training in climate-smart innovation and digital tools.
  • Linkages to additional finance and markets through investor matchmaking and ecosystem events.

Examples of eligible innovation areas

  • Sustainable furniture and woodcraft products
  • Alternative charcoal or bio-briquettes
  • Bamboo value chain products
  • Eco-packaging made from forest residues
  • Essential oils and natural product extraction
  • Forestry mapping and digital monitoring tools
  • Forestry-based tourism or education
  • Forest-friendly agribusiness or agroforestry models
  • Engineered wood and forest products
  • Non-timber forest product businesses
  • Wood Kiln Drying Services
  • Beekeeping and bee products
  • Small-scale Sawmilling & Mobile Mills
  • Sustainable Construction Materials
  • Forestry Tool Rental Hub
  • Furniture & Woodcraft Workshops

How to apply

Applications must be submitted electronically via the online application portal APPLY NOW. The submission should include:

  • Completed electronic application form
  • Brief business plan or pitch deck
  • Proof of registration or legal existence
  • Proof of traction

Selection process

All applications will be assessed based on:

  • Eligibility & Compliance
  • Relevance to Forestry Value Chain
  • Innovation & Sustainability
  • Business Viability & Scalability
  • Impact on Jobs & Inclusion

A transparent, merit-based evaluation process will be conducted by a combination of experts in forestry, finance, investment and innovation.

The following rubric will guide reviewers to assign scores objectively across all applications. Suggested total score: 100 points

Criteria

  1. Eligibility & Compliance
    1. Indicators: Application complete, legally registered, meets target group criteria; within or with strong linkage to Iringa, Njombe, Ruvuma and Lindi
    2. Max Score: 10
  2. Relevance to Forestry Value Chain
    1. Indicators: Clear involvement in any stage of forestry value chain with demonstrable activities.
    2. Max score: 15
  3. Innovation & Sustainability
    1. Indicators: Originality of solution, potential to contribute to low-carbon or climate-smart outcomes.
    2. Max score: 30
  4. Business Viability& Scalability
    1. Indicators: Clarity of business model, growth potential, use of funds, budget clarity.
    2. Max score: 30
  5. Impact on Jobs & Inclusion
    1. Indicators: Demonstrated or potential impact on job creation, especially for youth/women/PWD.
    2. Max score: 15

 

Information sessions

Interested applicants are encouraged to attend virtual and/or in-person information sessions that may be hosted in Iringa, Njombe, Ruvuma, Lindi and Dar es Salaam. Dates will be announced via FUNGUO social media platforms.

These sessions will be used to respond to questions and guide applicants through the process.

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