According to a recent study, Uganda is losing around 200,000 hectares of forest every year. If this continues, the country could be without any significant tree cover as soon as 2040. For those living in the northern district of Gulu, limited livelihood options since the civil war ended in 2006 have made forests a key source of income and fuel. Since the war, most of the region's forested areas have been lost to hardwood, charcoal, and firewood production. The area still has a good climate and soils, but there is a risk that large-scale monoculture may become the norm. An associated change in rain patterns would put many small-scale farmers’ income and security at risk.

Lush Investments – an arm of the ethical cosmetics brand focused on investing in socially and environmentally responsible agriculture – is partnering with Alumalum, an ethical agricultural goods processor, on a reforestation initiative in the Gulu district.

The initiative will work with small-scale farmers to establish an agroforestry system. Lush and Alumalum will provide trees and technical support to farmers, as well as a guaranteed market for their produce. As an added incentive, Alumalum is piloting a payment for ecosystem services system that would reward farmers for carbon captured through planting and maintaining trees.

Alumalum has been working with farmers in the district since 2015, primarily sourcing moringa from around 150 members of its Partner Farmer Programme. The company’s main revenue is generated from oils processed at its entirely solar-powered factory.

To scale up and expand impact, P4F is supporting Alumalum to diversify into other commodities in the agroforestry system – cocoa, vanilla, timber (mahogany and musizi) – as well as PES (part of Lush’s in setting programme). This initiative would support an additional 800 plus farmers and incorporate 20 Collaborative Forest Management groups.

Economic and social value: In 2023, the project supported 813 farmers, whose incomes have increased from sales of moringa and cocoa as well as Payment for Ecosystem Services received from Lush.

Environmental value:  The project has worked to sustainably maintain 909 hectares of land by planting over 450,000 soft and hard wood trees via its partner farmer programme. It continues to incentivize forest protection by improving livelihoods for those living in the area and working with CFM groups to educate against encroachment.

P4F provided funding to support Alumalum in scaling activities, as well as technical assistance for validating and improving its current business plan. This is aimed at securing access to premium markets for the commodities introduced in the agroforestry systems.

During the extension phase, P4F will also support Alumalum expand its farmer network and scale its operations and impact in Gulu, northern Uganda.  Additionally, P4F will provide technical assistance to conduct a study to enter the carbon market, by providing a carbon market cashflow model and project management training as well as capacity building for all stakeholders involved.  The project will continue to strengthen its partnership with CFM groups and explore a way for a sustainable pathway for its Payment for Ecosystem Services. 

The partnership between Lush and Alumalum has successfully attracted private investment to the region. By increasing the market beyond Lush, there is potential to scale the project to thousands more small-scale farmers who are committed to environmental conservation and agroforestry.