Promoting Sustainability and Growth: The Inclusive Green Growth (IGG) Tool for Small-Scale Processors in Tanzania

Small-scale processors play a pivotal role in Tanzania’s agro-industrial sector, transforming raw agricultural products into value-added goods, creating employment opportunities, and driving economic growth in rural areas. Yet, despite their contributions, small-scale processors face a myriad of challenges, including limited access to resources, inadequate technology, and difficulty in complying with environmental and social standards. To support these essential players, the Southern Agricultural Growth Corridor of Tanzania (SAGCOT) has introduced the Inclusive Green Growth (IGG) Guiding Tool for Small-Scale Processors. This innovative tool is designed to empower small-scale processors by helping them enhance their business operations, improve sustainability, and align with Tanzania’s development goals and international environmental standards.

Understanding the IGG Tool for Small-Scale Processors

The IGG tool offers a comprehensive framework for small-scale processors, enabling them to assess, plan, and implement sustainable practices. It is based on three key principles—Inclusivity and Social Sustainability, Business Sustainability, and Environmental Sustainability—that guide processors in adopting responsible investment and operational practices. Each principle is assigned specific points: 30 points each for inclusivity and business sustainability, and 40 points for environmental sustainability. This scoring system motivates processors to strive for continuous improvement and excellence in sustainability.

The IGG tool targets small-scale processors with capital investments up to TZS 50 million, operating in low-capacity environments with minimal technology usage. Typically, these processors employ a combination of hired and family labor. By providing a structured self-assessment framework, the IGG tool helps them navigate the complexities of compliance, governance, and sustainability.

Driving Inclusivity and Social Responsibility

The inclusivity and social sustainability principle, which carries 30 points, emphasizes the importance of fair labor practices, gender equality, and social inclusion. The IGG tool guides small-scale processors in developing non-discriminatory hiring policies, ensuring equal opportunities for all employees regardless of gender, age, or disability, and fostering safe and healthy working conditions.

The tool also encourages processors to establish strong linkages with local communities. Processors are evaluated on their ability to engage with local suppliers, support conflict management, and build trust within the community. This engagement is crucial in Tanzania’s rural areas, where small-scale processing activities can have a direct impact on local livelihoods and social cohesion. By promoting transparent and responsible social practices, the IGG tool helps processors build positive relationships that are essential for long-term sustainability.

One of the key aspects of social responsibility addressed by the IGG tool is the issue of child and forced labor. Processors are required to comply with national labor laws, such as the Law of the Child Act No. 21 of 2009, and adopt policies that prevent the exploitation of vulnerable groups. This focus on labor rights not only protects workers but also enhances the credibility and reputation of small-scale processors in the market.

Fostering Business Sustainability and Resilience

Business sustainability is another core component of the IGG tool, accounting for 30 points. Small-scale processors are encouraged to adopt good governance practices, maintain accurate financial records, and comply with national regulations. The tool promotes transparency, accountability, and integrity, which are fundamental to building a resilient and competitive business.

The IGG tool guides processors in establishing clear operational procedures, such as setting up management structures and defining roles and responsibilities within the organization. This organizational clarity helps processors streamline their operations and improve efficiency. Additionally, the tool emphasizes the importance of obtaining necessary certifications from regulatory authorities like the Tanzania Bureau of Standards (TBS) and the Tanzania Medicines and Medical Devices Authority (TMDA), which can significantly enhance product quality and market access.

Capacity building is a key focus of the IGG tool’s business sustainability principle. Small-scale processors are encouraged to participate in training programs that improve their skills in areas such as financial management, entrepreneurship, and sustainable business practices. By investing in capacity building, processors can enhance their operational capabilities, reduce risks, and position themselves for growth in local and international markets.

Promoting Environmental Sustainability

Environmental sustainability is given the highest weight in the IGG tool, with 40 points allocated to this principle. The tool encourages small-scale processors to adopt practices that minimize environmental impact and contribute to climate resilience. This includes waste management, water conservation, pollution control, and the adoption of cleaner production technologies.

Small-scale processors are evaluated on their ability to manage resources efficiently, reduce pollution, and implement environmentally friendly practices. The IGG tool promotes the use of renewable energy sources, efficient water usage, and sustainable waste management practices to reduce the environmental footprint of processing activities. By adopting these practices, small-scale processors not only contribute to environmental conservation but also improve their competitiveness by reducing costs associated with resource usage and waste management.

The IGG tool also aligns with national and international environmental frameworks, such as Tanzania’s National Environmental Policy (2021) and the United Nations Sustainable Development Goals (SDGs). By adhering to these frameworks, small-scale processors can enhance their compliance with regulations, avoid penalties, and access new market opportunities that prioritize sustainability.

Empowering Small-Scale Processors for Sustainable Development

The implementation of the IGG tool has had a transformative impact on Tanzania’s small-scale processing sector. As of 2023, over 200 small-scale processors have adopted the IGG framework, leading to significant improvements in their operational practices and overall sustainability. Processors who have embraced the IGG principles have reported increased productivity, reduced waste, and enhanced compliance with national regulations.

Through the IGG tool, processors have gained access to new markets and investment opportunities, enabling them to expand their operations and invest in new technologies. The tool has also facilitated greater collaboration between processors, government agencies, and development partners, creating a platform for dialogue, knowledge sharing, and collective action. This collaborative approach has enabled processors to access technical support, financial resources, and market linkages, further enhancing their capacity to thrive in an increasingly competitive environment.

Building a Sustainable Future for Tanzania’s Agro-Processing Sector

The success of the IGG tool in promoting sustainable practices among small-scale processors is a testament to SAGCOT’s commitment to fostering responsible investment and sustainable development in Tanzania’s agricultural sector. By helping processors demonstrate their compliance with sustainability standards, the IGG tool has enhanced their credibility and attractiveness to potential investors. This, in turn, has enabled processors to secure financing for scaling up their operations and investing in new technologies.

Moreover, the tool has encouraged processors to engage more actively with local communities, creating shared value and contributing to the social and economic development of rural areas. By supporting local producers and suppliers, processors have strengthened local value chains and created new income-generating opportunities for smallholder farmers.

A Continuous Journey of Improvement

The IGG tool is not a one-time assessment; it is an ongoing process that encourages processors to continuously reflect on their practices and strive for improvement. SAGCOT plans to review and update the tool regularly, incorporating feedback from processors, government agencies, and other stakeholders. This iterative approach ensures that the IGG tool remains relevant and effective in guiding small-scale processors towards sustainable growth.