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Guide for small and medium enterprises in sustainable non-timber forest trade in Central Africa







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    Book (series)
    Enabling micro, small and medium-sized enterprises to participate in legal timber production and trade
    Transformational changes generated by the FAO-EU FLEGT Programme
    2022
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    Micro, small and medium-sized enterprises (MSMEs) play a critical role in meeting the growing demand for forest products worldwide, with potential to contribute to responsible supply chains that combat illegal logging while promoting economic growth. However, a growing number of countries are adopting demand-side control measures that require proof of legality of forest products. Forest sector MSMEs will require significant support – and changes to the types of support they receive – to fulfil and even take advantage of these new and emerging market requirements and related opportunities. This paper draws from 110 initiatives in 20 countries supported by the FAO-EU Forest Law Enforcement, Governance and Trade (FLEGT) Programme between 2016 and 2022 and seeks to provide examples of how to support forest sector MSMEs cost-effectively and at scale to integrate them into domestic and international legal timber value chains. The initiatives discussed in this paper offer a wealth of experience and knowledge, which can be capitalized upon to boost forest-dependent livelihoods and promote both social equity and sustainability within timber supply chains. Implementing a portfolio of these strategies in a comprehensive support package generate “transformational changes” that help realize the potential of MSMEs to move past traditional business-as-usual modes of operation towards sustainable growth and more inclusive, resilient economies.
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    Supporting sustainability and growth in the Mekong Region’s micro, small and medium timber processing enterprises 2022
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    The European Forest Institute (EFI), with funding from the Swedish International Development Cooperation Agency (Sida), has been testing approaches to enable wood-based micro, small and medium enterprises (MSMEs) in the Mekong region to operate legally and sustainably since 2015. These MSMEs play a key role in local economies and generate significant livelihood and employment opportunities in formal and informal sectors. MSMEs can also be part of the solution to reducing deforestation and forest degradation. This can be achieved if they are encouraged to adopt legal and sustainable sourcing and processing practices through specialised trainings, and if regulatory frameworks are paying special attention to MSMEs. To this end, EFI tested solutions to challenges MSMEs are facing in six pilot interventions in Laos, Myanmar, Thailand and Vietnam. Through the pilots, EFI worked closely with more than 100 MSMEs in the 4 Mekong countries. The poster introduces and shares lessons learnt from the pilots. Keywords: Economic Development, Gender, Value chain, Decent employment, Illegal trade ID: 3488081
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