# Firewood and charcoal supply: Value chain

Countless small hands, from kiln to roadside to retailer

Source page: https://www.materialinsights.org/energy/e_traditional_fuel/valuechain/

What this tab covers Who does what, from equipment makers to builders, owners, operators, traders and users, with the leading companies at each step.

Charcoal passes through many small hands: wood owners, kiln makers, transporters, wholesalers and retailers, with forest agencies and local councils collecting fees.

#### The chain
 Wood owners and producers Transporters Wholesalers and retailers Regulators and revenue collectors Data and policy bodies

| Stage | What happens | Leading companies |
|---|---|---|
| **Wood owners and producers** | Villages and farmers sell wood or make charcoal | No large firms; mainly smallholders and village groups^[5](https://www.slu.se/globalassets/ew/org/andra-enh/uadm/global/pdf/analysis-of-the-charcoal-value-chain-in-kenya-doris-mutta.pdf)^[6](https://www.tfcg.org/wp-content/uploads/2018/06/TTCS-Technical-Report-4-Ishengoma-Charcoal-Market-Conditions-in-Tanzania-2016.doc.pdf) |
| **Transporters** | Bicycle and motorbike riders, ox carts and lorry owners | No large firms; small operators^[4](https://openknowledge.worldbank.org/bitstreams/6c4e03ca-a24d-5406-8559-308b3a1c6d35/download)^[6](https://www.tfcg.org/wp-content/uploads/2018/06/TTCS-Technical-Report-4-Ishengoma-Charcoal-Market-Conditions-in-Tanzania-2016.doc.pdf) |
| **Wholesalers and retailers** | Urban depots and neighbourhood sellers | No large firms; informal traders^[6](https://www.tfcg.org/wp-content/uploads/2018/06/TTCS-Technical-Report-4-Ishengoma-Charcoal-Market-Conditions-in-Tanzania-2016.doc.pdf) |
| **Regulators and revenue collectors** | Issue permits, transit passes and royalties | Tanzania Forest Services Agency (Tanzania) Kenya Forest Service (Kenya)^[5](https://www.slu.se/globalassets/ew/org/andra-enh/uadm/global/pdf/analysis-of-the-charcoal-value-chain-in-kenya-doris-mutta.pdf)^[6](https://www.tfcg.org/wp-content/uploads/2018/06/TTCS-Technical-Report-4-Ishengoma-Charcoal-Market-Conditions-in-Tanzania-2016.doc.pdf) |
| **Data and policy bodies** | Collect statistics and advise on sustainable supply | FAO (international) World Bank (international)^[1](https://doi.org/10.1038/s41467-025-59733-y)^[2](https://www.uncclearn.org/wp-content/uploads/library/charcoal.pdf)^[4](https://openknowledge.worldbank.org/bitstreams/6c4e03ca-a24d-5406-8559-308b3a1c6d35/download) |

The value chain is overwhelmingly informal, so no companies hold meaningful market share. In Tanzania (2009 estimate), transporters and wholesalers together take about half of the final price and producers about one third.

Kenya's sector employs about 700,000 people and supports some two million dependants; producers there earn roughly USD 0.50 per hour of work.

#### Sources

1. [Global wood fuel production estimates and implications (Steel et al., Nature Communications 16, 6227; authors include FAO staff)](https://doi.org/10.1038/s41467-025-59733-y) Nature Portfolio, 2025
2. [The charcoal transition: greening the charcoal value chain to mitigate climate change and improve local livelihoods](https://www.uncclearn.org/wp-content/uploads/library/charcoal.pdf) FAO, 2017
3. [Environmental Crisis or Sustainable Development Opportunity? Transforming the Charcoal Sector in Tanzania: A Policy Note](https://openknowledge.worldbank.org/bitstreams/6c4e03ca-a24d-5406-8559-308b3a1c6d35/download) World Bank, 2009
4. [Sustainable Business Models for Tree-based Value Chains in Sub-Saharan Africa: Analysis of the Charcoal Value Chain in Kenya (Mutta)](https://www.slu.se/globalassets/ew/org/andra-enh/uadm/global/pdf/analysis-of-the-charcoal-value-chain-in-kenya-doris-mutta.pdf) Swedish University of Agricultural Sciences (SLU), Formas project, 2020
5. [Charcoal Market Conditions in Tanzania (TTCS Technical Report 4, Ishengoma)](https://www.tfcg.org/wp-content/uploads/2018/06/TTCS-Technical-Report-4-Ishengoma-Charcoal-Market-Conditions-in-Tanzania-2016.doc.pdf) Tanzania Forest Conservation Group / TTCS project, 2016

## Other sections

- [Summary](https://www.materialinsights.org/energy/e_traditional_fuel/index.md)
- [Overview](https://www.materialinsights.org/energy/e_traditional_fuel/overview/index.md)
- [Correlation](https://www.materialinsights.org/energy/e_traditional_fuel/correlation/index.md)
- [How it works](https://www.materialinsights.org/energy/e_traditional_fuel/explain/index.md)
- [Efficiency and losses](https://www.materialinsights.org/energy/e_traditional_fuel/efficiency/index.md)
- [Technology advances](https://www.materialinsights.org/energy/e_traditional_fuel/advances/index.md)
- [Geopolitics and regulation](https://www.materialinsights.org/energy/e_traditional_fuel/geopolitics/index.md)
- [Unit economics](https://www.materialinsights.org/energy/e_traditional_fuel/economics/index.md)
- [Impact on the biosphere](https://www.materialinsights.org/energy/e_traditional_fuel/biosphere/index.md)
- [Relationships](https://www.materialinsights.org/energy/e_traditional_fuel/links/index.md)