Transforming Agriculture Through SAGCOT: A Story of Vision, Partnership, and Progress

By Kilimokwanza.org Reporter

In a candid and inspiring address, Geoffrey Kirenga, the CEO of the SAGCOT Centre, shared the remarkable journey of the Southern Agricultural Growth Corridor of Tanzania (SAGCOT), a transformative initiative rooted in government and private sector collaboration. SAGCOT has become a showcase of the power of prioritization, partnerships, and persistence in agricultural development.

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The Genesis of SAGCOT

SAGCOT’s story begins with a crucial dialogue in 2010. “SAGCOT is a product of a dialogue between the government and the private sector through the National Business Council,” Kirenga explained. This forum, established to foster public-private collaboration, became the birthplace of a groundbreaking idea—prioritizing agricultural transformation to drive economic growth.

At the heart of this dialogue was the “Kilimo Kwanza” (Agriculture First) initiative, a national rallying call to place agriculture at the forefront of Tanzania’s development agenda. The concept gained international recognition at the World Economic Forum in Davos, leading to further discussions during the Africa Economic Forum in Dar es Salaam. “The global community saw the potential but cautioned us to focus on areas where we had a clear chance of success,” Kirenga noted.

These conversations laid the groundwork for the SAGCOT blueprint, which identified the Southern Agricultural Corridor as a priority region. Historically responsible for 60% of Tanzania’s food production, the corridor was recognized as a natural hub for investment.

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Building Partnerships and Structures

SAGCOT was established in 2011 as a public-private partnership to operationalise the blueprint. “SAGCOT is an example of a leading public-private partnership,” Kirenga emphasized. The founding partners included the Agricultural Council of Tanzania, the Confederation of Tanzania Industries (CTI), and the Ministry of Agriculture.

The partnership initially involved 20 private sector companies and three umbrella organizations. Over the years, it has encompassed 30 umbrella organizations, 60 private companies, and a number of development partners. “The goal was to facilitate $3.5 billion in investments along the corridor by 2030. Today, we are well on our way,” Kirenga proudly stated.

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The Cluster Approach: Focused Prioritization

Understanding the need for strategic focus, SAGCOT adopted a cluster approach. Regions like Iringa and Njombe were identified as high-potential areas. “These regions were not well-known to agricultural investors at the time,” Kirenga noted. Through extensive consultations with local stakeholders, SAGCOT identified key value chains such as horticulture, livestock, poultry, and dairy.

The process also included forming “partnership compacts,” agreements that outlined roles and responsibilities for the government, private sector, and development partners. “The compacts created ownership and accountability, fostering trust and commitment among stakeholders,” Kirenga explained. Today, SAGCOT boasts six clusters, each driving investments and addressing regional challenges.

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Transformative Impacts

The impact of SAGCOT’s interventions is evident across multiple sectors:

1. Potatoes
   Potatoes, once overlooked, have become a major success story. “Productivity in the Iringa and Njombe clusters has increased from 7 tons to up to 20 tons per hectare, with some farms yielding over 40 tons,” Kirenga shared. Tanzania now exports over 50 tons of potatoes daily to Kenya during peak seasons.
2. Avocados
   The Southern Highlands, once absent from the avocado export market, now lead the charge. Exports have risen to 25,000 metric tons annually. “This transformation is a direct result of prioritizing high-potential crops,” Kirenga noted.
3. Dairy
   Companies like ASAS have revolutionized Tanzania’s dairy industry. “Daily milk processing has grown from 15,000 liters to 400,000 liters,” Kirenga highlighted. The company also began producing whole milk domestically for the first time.
4. Poultry
   The poultry sector has witnessed substantial investments, with companies producing 300,000 chicks daily and processing 100 tons of poultry meat. “This growth reflects the importance of supporting the private sector with infrastructure and policy alignment,” Kirenga said.

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Infrastructure Development: The Backbone of Progress

Kirenga underscored the critical role of infrastructure in agricultural transformation. SAGCOT’s advocacy led to establishing TARURA (Tanzania Rural and Urban Roads Agency), which allocates 30% of its budget to rural road development.

“We took cameras to capture the plight of farmers whose produce was rotting due to poor roads. That evidence convinced the government to act,” Kirenga recalled. Additionally, rural electrification efforts have brought power to 80% of villages in the corridor, enabling value addition and economic activities.

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Sustainability and Inclusivity

Sustainability and inclusivity are core principles of SAGCOT’s model. “For private sector involvement, three conditions are non-negotiable: businesses must operate in food and nutrition value chains, address smallholder farmers’ needs, and demonstrate sustainable practices,” Kirenga explained.

This approach has significantly improved livelihoods. “Farmers who once depended on cash handouts are now thriving. They can feed their families, send children to school, and invest in their farms,” Kirenga observed.

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Challenges and Lessons Learned

Despite its successes, SAGCOT has faced challenges, particularly in managing expectations and navigating political pressures. “You cannot be everywhere,” Kirenga admitted. “Prioritization is key, but balancing focus with national coverage requires careful strategy.”

SAGCOT’s evolution into the Agricultural Growth Corridors of Tanzania (AGCOT) reflects this lesson. The expanded model will cover additional regions while focusing on high-impact areas.

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The Power of Partnership

Kirenga emphasized the indispensable role of partnerships. Collaboration has been central to SAGCOT’s success, from donors like Norway, USAID, the World Bank, and AGRA, to local governments and the private sector. “This is not just about money; it’s about commitment and shared vision,” he remarked.

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A Vision for the Future

As SAGCOT transitions to AGCOT, the focus remains on planting seeds for long-term transformation. “The next generation of practitioners must remember: success lies in prioritization and partnerships,” Kirenga advised.

Through innovation, collaboration, and strategic focus, SAGCOT has set a powerful example of how agriculture can drive economic growth and improve livelihoods. As Kirenga concluded, “We are not just transforming agriculture; we are transforming lives.”

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This journey of SAGCOT reflects the immense potential of public-private partnerships to create lasting change. With its focus on sustainability, inclusivity, and impact, SAGCOT inspires hope for a brighter agricultural future in Tanzania and beyond.