SAGCOT: Transforming Tanzania’s Agricultural Landscape through Public-Private Partnerships

By Juma Msafiri

The Southern Agricultural Growth Corridor of Tanzania (SAGCOT) is revolutionizing Tanzania’s agricultural sector, leveraging a public-private partnership model to drive inclusive and sustainable agricultural transformation. As one of the most impactful initiatives in Africa, SAGCOT has set the standard for agricultural growth, engaging smallholder farmers, private sector partners, and the government in a collaborative effort to increase productivity and achieve food security.

Unlocking Africa’s Agricultural Potential

With 60% of Africa’s arable land either underutilized or improperly managed, the continent continues to struggle with food insecurity. Despite its vast agricultural resources, Africa imports more than $35 billion worth of food annually, while intra-African trade remains under 5%. The population of sub-Saharan Africa is expected to double by 2050, creating an even greater need to increase agricultural productivity. If current trends continue, the food import bill could rise to $110 billion by 2025​.

SAGCOT is addressing these challenges through a strategic approach that targets the southern highlands of Tanzania, focusing on improving infrastructure, enhancing market access, and fostering sustainable farming practices. The initiative’s impact is already evident, having directly benefited 903,000 smallholder farmers and attracted $1.32 billion in private investments. These efforts are reshaping the agricultural landscape by increasing food production, boosting farmer incomes, and ensuring the long-term sustainability of Tanzania’s agricultural sector​

The Cluster Approach: Driving Growth Regionally
SAGCOT’s success is built on its innovative cluster approach, which concentrates resources in specific regions to maximize impact. Three clusters—Ihemi, Mbarali, and Kilombero—are already operational, covering regions such as Iringa, Njombe, Mbeya, and Morogoro. These clusters serve as hubs for agribusiness development, providing services that include infrastructure improvements, storage, processing, research, and access to markets​.

The cluster approach allows SAGCOT to promote competitiveness and encourage investments across different agricultural value chains. It facilitates the introduction of modern farming techniques, climate-smart agriculture, and improved seed varieties, all of which contribute to higher productivity and resilience in the face of climate change.

Success Stories: Potatoes, Tomatoes, and Poultry
A prime example of SAGCOT’s success is the transformation of the potato value chain. In Ihemi and Mbarali, productivity has skyrocketed from less than 8 tons per hectare to an impressive 30 tons per hectare. This has been made possible through the introduction of new, high-quality potato varieties and the professionalization of the sector. As a result, demand for clean seed potatoes has soared, and farmers who have adopted these varieties are now reporting income increases of up to four times per hectare​.

In the tomato sector, SAGCOT has partnered with local agribusinesses like Raha Farm to boost production. By promoting climate-smart technologies such as screen houses and introducing new moisture management systems, tomato seedling production has surged from 3,000 to 400,000 seedlings per month. This expansion has also led to a significant increase in employment, particularly for women, who now comprise 85% of Raha Farm’s workforce​.

SAGCOT’s impact on the poultry sector is equally noteworthy. By removing policy obstacles and encouraging investments from companies like Silverlands and Tanfeeds International, SAGCOT has revitalized poultry farming in Tanzania. Local maize, soybean, and sunflower seed producers are benefiting from increased demand, while the introduction of modern poultry breeds has further boosted productivity. The removal of VAT on animal feeds and additives has also made the business environment more conducive to growth​(SAGCOT-03-2024-GK-17.03…)​(SAGCOT-03-2024-GK-17.03…).

Tanzania Sustainable Soybean Initiative (TSSI): A Strategic Focus

The Tanzania Sustainable Soybean Initiative (TSSI) represents one of SAGCOT’s most ambitious undertakings. Soybeans are increasingly being recognized as a strategic crop for Tanzania, thanks to their role in producing high-quality animal feed and edible oil. In 2023, SAGCOT profiled 21,725 farmers—38% of whom were women and 21% youth under the age of 35—as part of its efforts to scale up soybean production. The initiative also established 140 demonstration farms and 48 model farms across 19 district councils, positioning soybeans as a cornerstone of Tanzania’s agricultural future​.

To ensure the success of the soybean initiative, SAGCOT has facilitated strong partnerships with financial institutions, including CRDB, NMB, and EQUITY Bank. These institutions have committed significant funding to support input financing and investment in the soybean value chain. Furthermore, the Tanzanian government has endorsed the creation of a National Soybean Development Strategy, solidifying soybeans’ role in the country’s agricultural strategy​.

Expanding Horizons: SAGCOT’s Vision for the Future
Looking ahead, SAGCOT plans to extend its reach beyond the southern corridor, with plans to expand its strategic commodity compacts for rice, horticulture, and soybeans into new regions. The initiative’s commitment to climate-smart agriculture and sustainable farming practices is central to its long-term vision. By addressing soil health, promoting drought-tolerant crops, and encouraging the use of low-acidifying fertilizers, SAGCOT is building resilience in the face of climate change, ensuring that Tanzanian farmers can maintain productivity even in adverse conditions​.

SAGCOT’s Inclusive Green Growth (IGG) Tool is another key element of its future strategy. This tool helps identify and manage social and environmental risks, ensuring that agribusiness development remains sustainable. By incorporating climate change adaptation strategies and nature-based solutions, the IGG Tool supports Tanzania’s efforts to build a more resilient and sustainable agricultural sector.

Partnerships: The Key to Success
At the heart of SAGCOT’s achievements is its ability to foster strong partnerships between the public and private sectors. The initiative has created a platform where government agencies, development partners, private companies, and farmer organizations can collaborate to achieve shared goals. This collaborative approach has been instrumental in overcoming policy challenges, attracting investment, and promoting inclusive growth across Tanzania’s agricultural sector.

SAGCOT’s ability to convene stakeholders, drive mindset change, and facilitate investment has made it a model for other regions in Africa and beyond. As the initiative expands, its approach to agricultural development—centered on public-private partnerships, inclusivity, and sustainability—offers valuable lessons for countries seeking to transform their food systems and ensure long-term food security.

A Call to Action
As Tanzania looks to the future, SAGCOT is well-positioned to play a pivotal role in transforming the country’s agricultural sector. The initiative’s success demonstrates the power of partnership and innovation in addressing some of Africa’s most pressing challenges. By supporting smallholder farmers, attracting private investment, and promoting sustainable farming practices, SAGCOT is helping to build a more prosperous and food-secure future for Tanzania.

For governments, development partners, and private investors worldwide, SAGCOT offers a blueprint for agricultural transformation. By leveraging the power of partnerships and adopting inclusive, climate-smart approaches, SAGCOT is ensuring that Tanzania’s agricultural sector remains resilient, competitive, and sustainable in the years to come.