By James Mwangi
In the bustling agricultural markets of East Africa, a quiet but formidable transformation has been taking place across the southern highlands of Tanzania. What began over a decade ago as an ambitious experiment in public-private partnership—the Southern Agricultural Growth Corridor of Tanzania (SAGCOT)—is now shedding its regional skin to become a national powerhouse. For Kenya and the wider East African Community (EAC), the evolution of SAGCOT into the Agricultural Growth Corridors of Tanzania (AGCOT) signals the awakening of a regional breadbasket with sights set on global competitiveness.
The story begins in 2010 at the World Economic Forum on Africa in Dar es Salaam. Under the vision of “Kilimo Kwanza” (Agriculture First), the Tanzanian government sought to break the cycle of subsistence farming by creating a cohesive ecosystem where smallholder farmers, global agribusinesses, and the government could collaborate. The goal was lofty: to mobilize responsible private investment that would deliver rapid, sustainable agricultural growth and lift millions out of poverty. To operationalize this, the SAGCOT Centre was established as a neutral broker—a coordination unit designed to facilitate trust between the public and private sectors. Over the last decade, this “unusual business” approach has yielded dividends that defy the typical stagnation often associated with large-scale development projects.
By the end of the 2024 fiscal year, the corridor had mobilized a cumulative USD 6.34 billion in investments, surpassing its target of USD 5.71 billion by 111%. While the public sector poured USD 5.02 billion into critical infrastructure like the Mwalimu Nyerere Hydroelectric Power Project and rural roads, the private sector—demonstrating profound confidence in Tanzania’s agribusiness climate—injected USD 1.32 billion into processing, farming, and logistics. The true measure of success, however, lies not just in billion-dollar figures but in the granular transformation of livelihoods. The initiative has successfully linked approximately 856,000 smallholder farmers into commercial value chains, fundamentally shifting them from subsistence farming to viable agribusinesses.
The impact is visible in specific value chains that have direct relevance to Kenyan markets, such as the potato sector in the Ihemi Cluster of Iringa and Njombe. Through strategic partnerships facilitated by the Centre, potato productivity among smallholders jumped from 7 tonnes per hectare in 2015 to 28 tonnes per hectare in 2021, with some farmers surpassing world records at over 50 tonnes per hectare. Cooperatives like the Isowelu AMCOS in Njombe have secured stable markets in Kenya, selling produce at competitive prices due to their adherence to quality standards and certified seeds. Similarly, the “green gold” of the southern highlands—avocados—has seen explosive growth. Njombe has established itself as Tanzania’s avocado capital, and through pest risk analysis coordinated by SAGCOT and the Ministry of Agriculture, Tanzanian avocados have gained access to lucrative markets in South Africa and India, alongside traditional European destinations.
Having achieved many of its 2030 objectives ahead of schedule, the model eventually faced a new “problem” of high demand. Stakeholders from other fertile regions—specifically the Mtwara, Central, and Northern corridors—began clamoring for the same structured support that had revitalized the south. Responding to this call, President Samia Suluhu Hassan, during the launch of the Africa Food Systems Forum in March 2023, directed the expansion of the SAGCOT model nationwide. This directive birthed AGCOT—the Agricultural Growth Corridors of Tanzania. This is not merely a rebranding exercise, but a strategic scaling up. AGCOT is now mandated to replicate the cluster approach across three new corridors: the Northern Corridor, focusing on high-value horticulture and wheat; the Central/Lake Zone Corridor, targeting sunflower and fisheries; and the Mtwara Corridor, focusing on cashews and legumes.
The transition to AGCOT aligns with Tanzania’s Agriculture Master Plan (AMP) 2050, which envisions a sector valued at USD 100 billion, capable of generating USD 20 billion in annual exports. To achieve this, AGCOT will focus on “commodity compacts”—agreements that rally stakeholders around specific crops to unlock bottlenecks from farm to fork. For instance, the Soya Commodity Compact is already underway, targeting the animal feed industry to support the booming poultry and aquaculture sectors. With Tanzania currently importing significant amounts of wheat and edible oils, AGCOT is heavily focused on import substitution, driving investments into sunflower and wheat production to secure national food sovereignty. Furthermore, the initiative is doubling down on inclusivity through programs like “Building a Better Tomorrow” (BBT), which engages youth and women in agribusiness. In 2023 alone, the initiative facilitated loans for youth poultry keepers and supported female-led nurseries to expand production capacity to over one million seedlings per month.
For Kenya, a key trading partner and neighbor, the rise of AGCOT presents both competition and opportunity. Tanzania’s aggressive investments in infrastructure—such as the Standard Gauge Railway (SGR) and the expansion of the Dar es Salaam port—are designed to facilitate the movement of these agricultural surpluses to regional and global markets. However, the symbiotic nature of East African trade remains strong, as Tanzanian maize and rice continue to stabilize food prices in Kenya during deficit periods. Moreover, the AGCOT model offers a blueprint for how public-private partnerships can work when “honest facilitation” is at the core. By acting as a neutral broker, the Centre has managed to resolve complex tax regimes, such as the removal of VAT on agricultural inputs, thereby de-risking the sector for private investors.
As AGCOT rolls out its 2025-2030 strategy, the focus remains on deep impact within existing clusters and broad expansion into new territories. The initiative aims to reduce undernourishment to below 15% and create millions of jobs. In the words of AGCOT Centre CEO Geoffrey Kirenga, the transition to AGCOT is “an elevation of our mission… standing at the height of a future filled with opportunities.” For the smallholder farmer in Mbeya adopting climate-smart irrigation, or the avocado exporter in Njombe eyeing the Chinese market, this “unusual business” has become the usual path to prosperity. Tanzania is no longer just farming; it is building a future where it feeds itself, its neighbors, and the world.