Development cooperation ,13.05.2019

INT/UNIDO's trust funds for strengthening of the trade capacity of developing countries, 2nd additional grant


The United Nations Industrial Development Organization (UNIDO) is a UN specialized agency that promotes inclusive and sustainable industrial development, particularly in developing countries and transition economies. The organization focuses on: 1) poverty reduction through productive activities; 2) trade capacity building; and 3) energy and environment. UNIDO among Finland's key multilateral partners in Aid for Trade. Finland's support to UNIDO amounts to 2,100,000 euros during 2018-2020. The funding is channeled to UNIDO's Business Partnerships Trust Fund (1,400,000 euros), Agro-Industry Promotion Trust Fund (350,000 euros) and Trade Capacity Building Trust Fund (350,000 euros). The Business Partnerships Trust Fund is divided into two projects: "Revitalization of Forest Training Centres in the SADC Region for Green Employment, Phase III" (700,000 euros) and "Promoting Sustainable Bush-Processing Value Chains in Namibia" (700,000 euros). This additional grant of 450,000 euros will go through UNIDO's Business Partnerships Trust Fund to the project "Promoting Sustainable Bush-Processing Value Chains in Namibia". The immediate objective of the project is to develop sustainable and innovative, commercially feasible solutions to prevent the aggressive encroachment of acacia bush in grasslands and cattle pastures. The project supports the development of acacia bush value chains with e.g. Finnish expertise and technology. The results of the project will include the improved capacity of Namibian actors to use invasive acacia bush to test and produce animal feed, biochar, biomass, renewable energy and various chemicals (cosmetics, foodstuffs). The project will reduce the encroachment of the harmful bush, improves local value adddition, creates jobs as well as opportunities for income generation and entrepreneurship. The immediate beneficiaries include Ministry of Industrialization, Trade and SME Development (MITSMED); Ministry of Agriculture, Water and Forestry (MAWF); local farmers; traders; micro and small and medium-sized enterprises in manufacturing; transporters; rural utility companies; skilled and semiskilled employees and companies providing technology and rural finance. MITSMED and MAWF are also dutybrearers. The project is a multistakeholder partnership. The partners are MITSMED, MAWF, Baobab Capital investment fund, University of Namibia, Meat Board of Namibia, several Finnish enterprises and Seinäjoki University of Applied Sciences.

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Funding decision  13.05.2019

450 000 €

Objectives monitored by OECD's Development Assistance Committee

  • Trade development

Field of activity

  • Agricultural development 41%
  • Agricultural inputs 59%

Special target group

  • youth

Funding channel

YK:n teollistamisjärjestö



Code for the object of funding