Promoting Sustainable Agriculture with SAGCOT’s Inclusive Green Growth Tool for Medium and Large-Scale Processors

Special Correspondent

The Inclusive Green Growth (IGG) Guiding Tool for Medium and Large-Scale Processors has emerged as a transformative instrument in Tanzania’s agricultural sector, facilitating a balance between economic growth and environmental sustainability. This tool, part of the Southern Agricultural Growth Corridor of Tanzania (SAGCOT) initiative, supports processors in implementing sustainable practices that align with Tanzania’s national laws and international environmental standards. As Tanzania strives to become a regional leader in sustainable agricultural practices, the IGG tool offers a robust framework that guides processors through compliance and innovation, setting a new benchmark for responsible agricultural investment. https://sagcot.co.tz/wp-content/uploads/2024/10/Medium-Large-Processors-IGG-Tool_28.05.2024_Cleandraft5.pdf

Driving Sustainable Economic Growth

Agriculture is a key driver of Tanzania’s economy, contributing approximately 27% of the national GDP and employing nearly 75% of the workforce. With such a significant role, the need for sustainable and inclusive practices in this sector cannot be overstated. The IGG tool is designed to galvanize sustainable agricultural investment, particularly targeting processors with a capital investment ranging from TZS 200 million to TZS 800 million for medium-scale processors and above TZS 800 million for large-scale operations. By setting these thresholds, the tool ensures that investments are directed towards operations with substantial economic impact.

Medium-scale processors, typically employing 50 to 99 employees, represent a vital segment of Tanzania’s agricultural value chain, bridging the gap between smallholder farmers and large-scale enterprises. These processors play a crucial role in value addition, helping to transform raw agricultural products into market-ready goods. Large-scale processors, on the other hand, often have more than 100 employees and operate with higher degrees of mechanization and capital investment. They are capable of influencing broader market trends and have the potential to integrate more smallholder farmers into formal supply chains. The IGG tool is tailored to meet the needs of both segments, ensuring that sustainability and economic growth go hand in hand.

Environmental and Social Responsibility at its Core

At the heart of the IGG tool is a strong commitment to environmental stewardship and social inclusion. The tool is structured around three key principles: Inclusivity and Social Sustainability, Business Sustainability, and Environmental Sustainability. Each principle is meticulously assessed and scored, encouraging processors to adopt practices that benefit their operations and the communities and environments in which they operate.

Inclusivity and Social Sustainability

With 30 points allocated to inclusivity and social sustainability, the IGG tool underscores the importance of fair labor practices, gender equality, and community engagement. Processors are evaluated on their policies regarding labor and employment, ensuring they provide safe working conditions, fair wages, and non-discriminatory practices. Additionally, the tool assesses gender equality policies to ensure that women are given equal opportunities in employment and leadership roles. This focus on social sustainability aims to create a more equitable agricultural sector where all stakeholders, particularly vulnerable groups, can thrive.

Another critical area within this principle is the management of social linkages and conflict. Processors are encouraged to engage with local communities, resolve conflicts amicably, and support social cohesion. This is especially important in Tanzania’s rural areas, where agriculture is often the main source of livelihood and where tensions can arise over land use and resource allocation. By promoting transparent and inclusive practices, the IGG tool helps to build stronger relationships between processors and local communities.

Business Sustainability

The business sustainability principle, also worth 30 points, focuses on ensuring that processors operate in a financially viable and ethically responsible manner. This includes compliance with national regulations, good governance, and adherence to sustainability commitments. Processors are required to demonstrate their commitment to business sustainability through clear governance structures, operational procedures, and a strong culture of integrity and accountability.

Additionally, the IGG tool encourages processors to obtain certifications and comply with standards set by regulatory authorities, such as the Tanzania Bureau of Standards (TBS) and the Occupational Safety and Health Authority (OSHA). These certifications not only enhance the credibility of the processors but also ensure that their operations meet high standards of safety, quality, and sustainability.

Environmental Sustainability

Environmental sustainability is given the highest weight, with 40 points allocated to this principle. This reflects the need for processors to adopt practices that minimize environmental impact and contribute to climate resilience. The tool assesses processors’ ability to manage waste, use resources efficiently, and adopt environmentally friendly technologies. It also evaluates their efforts in pollution control, water conservation, and the implementation of climate adaptation and mitigation strategies.

Processors are encouraged to integrate nature-based solutions, such as agroforestry and soil conservation practices, which enhance biodiversity and improve the resilience of agricultural systems to climate change. The tool’s emphasis on environmental sustainability is in line with Tanzania’s Climate Change Strategy (2021-2026) and the Nationally Determined Contributions (2021), which aim to reduce greenhouse gas emissions and enhance the country’s capacity to adapt to climate change.

A Framework for the Future

The IGG tool is more than just a compliance checklist; it is a strategic framework that helps processors align their operations with Tanzania’s long-term development goals. By using the IGG tool, processors actively contribute to the realization of Tanzania’s Development Vision 2025, which seeks to transform the country into a middle-income economy driven by industrialization and sustainable development. The tool also supports the National Environmental Policy and the United Nations Sustainable Development Goals (SDGs), particularly those related to decent work, economic growth, responsible consumption, and climate action.

Since its inception, the IGG tool has fostered collaboration among diverse stakeholders, including the Vice President’s Office, The Nature Conservancy (TNC), and the World Wide Fund for Nature (WWF). These partnerships have been instrumental in refining the tool and ensuring its relevance to the evolving needs of the agricultural sector. As of 2023, over 20 processors have adopted the IGG framework, and many more are in the process of integrating it into their operations.

Evolution through Feedback and Engagement

The development and continuous refinement of the IGG tool are testaments to the collaborative spirit of the SAGCOT initiative. The tool has undergone multiple iterations based on feedback from processors, government agencies, and technical partners. This participatory approach has ensured that the tool remains practical, user-friendly, and adaptable to changing circumstances.

Stakeholder engagement is a cornerstone of the implementation of the IGG tool. The SAGCOT Green Reference Group, co-chaired by the Vice President’s Office and the private sector, has been pivotal in guiding the tool’s development. Regular consultations with processors and pilot testing with selected companies have provided valuable insights that have shaped the tool’s content and structure.

Conclusion

The IGG Guiding Tool for Medium and Large-Scale Processors represents a significant step forward in Tanzania’s quest for sustainable agricultural development. By promoting responsible investment, fostering environmental stewardship, and enhancing social inclusivity, the tool is helping to transform the agricultural sector into a catalyst for sustainable economic growth. As more processors embrace the IGG principles, Tanzania is poised to achieve its vision of a resilient, inclusive, and prosperous agricultural industry contributing to national and global sustainability goals.