Inclusive Green Growth Tools Take Center Stage in Sustainable Agriculture Dialogue

March 9, 2025 | Online (ClubHouse & YouTube)

Agribusiness East Africa, in collaboration with key stakeholders such as AMAGRO, COPRA, TOSCI, SAGCOT, TAHA, Diligent Consulting Ltd, Holly Green Ltd, and Afriflux Ltd, hosted a groundbreaking discussion on “Sustaining the Environment Through Inclusive Green Growth (IGG) Tools”. The event, held online via ClubHouse and YouTube, attracted agricultural experts, policymakers, and stakeholders committed to fostering sustainable agriculture in East Africa.

Driving the Future of Sustainable Farming

The session, led by seasoned professionals in the agribusiness sector, underscored the urgency of adopting sustainable agricultural practices amid increasing environmental challenges. Engineer Octavian Lasway, emphasized the crucial role of disseminating accurate agricultural information and fostering connections among farmers, businesses, and institutions.

“The main objective of Agribusiness East Africa is to ensure that agricultural stakeholders are well-informed and connected. We aim to eliminate communication barriers and bureaucracies that hinder farmers from accessing relevant information,” he remarked.

Over the past year, Agribusiness East Africa has facilitated multiple knowledge-sharing sessions addressing various agricultural sub-sectors. Previous discussions have focused on mango farming, irrigation, water resource management, and climate adaptation strategies. Notably, a previous session featured expert insights from the Agricultural Council of Tanzania, shedding light on policies and regulatory frameworks impacting the agricultural sector.

The Growing Importance of Water Conservation

In light of recent climate patterns, water conservation and irrigation technologies emerged as pivotal topics. Discussions revolved around modern irrigation systems such as drip irrigation, sprinkler systems, and center-pivot irrigation, all aiming to optimize water use and boost crop yields.

Tanzania Meteorological Authority’s recent forecast predicting rainfall across 25 regions sparked an engaging conversation on rainwater harvesting techniques. While some areas have benefited from increased rainfall, others have suffered significant crop losses due to prolonged dry spells.

Engineer Noel was cited to have experience in mitigating the effects of erratic weather through irrigation. “When the rains failed for nearly a month, his crops were at risk. However, he managed to sustain his crops by implementing irrigation techniques, and now they are ready for harvest,” it was explained.

The Threat of Climate Change and Land Degradation

The discussion also delved into the long-term impact of climate change on agricultural landscapes. Farmers and agricultural experts reflected on the drastic environmental changes observed over the decades. think about the village where you grew up. Were there rivers, springs, and lush vegetation? Now, picture that same landscape today—how much of it remains? The reality is that many of these water bodies and plant species have disappeared.”

Engineer Octavian highlighted historical data. It referenced an elderly woman aged 120 who recalled a time when rivers were full and dense forests provided natural balance. Her testimony underscored the extent of environmental degradation over the past century, reinforcing the need for urgent conservation efforts.

Harnessing Green Growth: Insights from SAGCOT’s John Banga

John Banga from SAGCOT Centre Limited presentation provided an in-depth analysis of environmental degradation, the urgent need for conservation agriculture, and how IGG Tools can help transform farming in Tanzania.

The Alarming Reality of Environmental Degradation

Banga started his session with a powerful reflection: “For those aged 50 and above, think about the village where you grew up. Were there rivers, springs, and lush vegetation? Now, picture that same landscape today—how much of it remains?”

His question resonated deeply with attendees, many of whom acknowledged the drastic environmental changes that have taken place over the years. Banga highlighted how deforestation, soil degradation, and unsustainable farming practices have contributed to losing vital ecosystems, leading to reduced agricultural productivity and increased vulnerability to climate change.

To illustrate the extent of environmental change, he referenced an interview conducted with a 120-year-old woman who recalled the abundant rivers and thriving vegetation of her youth. Over a century later, much of this natural wealth has disappeared, replaced by dry landscapes and unpredictable weather patterns.

Banga also shared personal anecdotes from his childhood in the 1990s, when streams and natural wells provided reliable water sources for household use, livestock, and small-scale farming. Today, many of these water bodies have dried up, forcing communities to rely on erratic rainfall patterns and expensive irrigation solutions. He emphasized that biodiversity loss is not just a theoretical concern but a lived reality for farmers across Tanzania.

Climate Change and Its Impact on Agriculture

Banga emphasized that climate change has dramatically altered Tanzania’s agricultural landscape. He pointed out that rain-fed farming is no longer a reliable strategy, as unpredictable rainfall patterns and prolonged droughts have led to significant crop failures. “Agriculture can no longer depend solely on rain. We must adopt innovative solutions to sustain productivity,” he urged.

To mitigate these challenges, he called for a shift towards climate-smart agriculture, advocating for techniques such as:

• Rainwater harvesting and storage – Capturing and storing rainwater to be used during dry spells.
• Agroforestry – Integrating trees into farming systems to enhance soil fertility and prevent erosion.
• Sustainable irrigation systems – Utilizing technologies such as drip and sprinkler irrigation to optimize water use.
• Soil conservation practices – Adopting zero tillage, mulching, and cover cropping to retain soil moisture and enhance fertility.

He also warned that as Tanzania’s population is projected to reach 250 million by 2100, pressure on natural resources will intensify. Ensuring food security for future generations requires urgent interventions to balance agricultural expansion with environmental sustainability.

SAGCOT’s Role in Promoting Inclusive Green Growth

As part of its mission to drive agricultural transformation, SAGCOT Centre Limited has been at the forefront of promoting sustainable farming practices. Banga outlined some of the key initiatives undertaken by SAGCOT to address environmental challenges:

1. Public-Private Partnerships (PPPs) – Collaborating with private sector actors, development partners, and government institutions to implement climate-smart agricultural solutions.
2. Value Chain Development – Strengthening sustainable agricultural value chains that incorporate climate resilience strategies.
3. Farmer Training & Capacity Building – Educating farmers on best practices for land management, irrigation, and conservation farming.
4. Policy Advocacy – Engaging policymakers to develop supportive frameworks for sustainable agricultural growth.

SAGCOT has also been instrumental in launching the Inclusive Green Growth Guiding Tool (IGG Tool)—a structured framework designed to help investors and farmers assess their environmental impact and adopt sustainable business practices. The tool evaluates agricultural investments across three key pillars:

• Environmental Sustainability – Ensuring efficient use of land, soil, and water resources.
• Social Inclusivity – Promoting fair labor practices and community engagement.
• Business Sustainability – Encouraging long-term financial viability through responsible investment strategies.

IGG Tool: Driving Compliance and Accountability

Since its inception in 2017, the IGG Tool has been used to assess over 50 agribusiness investors across Tanzania, with improving compliance rates. In its initial assessments, SAGCOT found that over 70% of investors had compliance scores below 60% in environmental sustainability, social inclusivity, and business sustainability. This highlighted the need for enhanced training and policy enforcement to encourage better practices.

As a response, SAGCOT has worked closely with regulators, including NEMC, OSHA, TRA, and water basin authorities, to align IGG Tool assessments with national regulatory requirements. Investors who fail to meet sustainability benchmarks are given tailored improvement plans and monitored annually to track their progress. Companies that consistently improve their IGG compliance scores serve as role models, demonstrating that sustainable agribusiness is both feasible and profitable.

Expanding the Green Growth Movement

SAGCOT aims to expand the implementation of the IGG Tool beyond the Southern Agricultural Growth Corridor into new regions under the Agriculture Growth Corridors of Tanzania (AGCOT) initiative. The goal is to institutionalize green growth principles nationwide, ensuring that all agricultural investments adhere to best practices in environmental conservation and social responsibility.

Banga made a strong call to action: “We must move beyond discussions and start implementing sustainable solutions. IGG Tools provide the blueprint for responsible agricultural growth, but success depends on collaboration across all sectors—farmers, businesses, policymakers, and communities alike.”

Ensuring Sustainability: Insights from Abdallah Hamadi on Environmental Compliance

Abdallah Hamadi, SAGCOT Centre, provided a crucial perspective on environmental compliance. His presentation focused on the role of IGG Tools in helping businesses and investors adhere to national and international environmental standards, ensuring their long-term sustainability and market competitiveness.

The Critical Role of Environmental Audits

Hamadi, emphasized that the IGG Tool has been specifically designed to address key environmental compliance challenges that many investors tend to overlook. He pointed out that while most investors undergo initial Environmental Impact Assessments (EIA)—which are mandatory for any new project—many neglect the equally crucial Annual Environmental Audits (AEA). These audits, which are also mandatory, help companies continuously monitor and improve their environmental management systems.

“Many businesses underestimate the importance of annual audits simply because they involve additional costs. However, these audits are not just regulatory formalities—they provide long-term benefits, helping companies establish structured management programs that ensure sustainability in their operations,” Hamadi, explained.

He shared an example of a company that had successfully obtained international environmental certifications, such as Rainforest Alliance and Global GAP, allowing it to access global markets. However, when the company decided to expand, it neglected to conduct a comprehensive environmental assessment. A whistleblower exposed the company’s unauthorized clearance of 600 hectares of land, triggering an unannounced global audit. The result? The company’s Rainforest Alliance certification was revoked, leading to the biggest financial loss in its 70-year history. It could no longer sell its products as certified goods in the global market, demonstrating the devastating consequences of failing to comply with environmental audits.

The IGG Tool: A Compliance Framework for All Investors

Hamadi, stressed that investors within and outside the SAGCOT partnership framework must embrace environmental compliance as a fundamental business practice. He highlighted that even companies not formally part of IGG Tool initiatives must comply with regulatory audits to remain operational.

“Companies participating in platforms like these should recognize the Annual Environmental Audits as a critical investment rather than an expense. Even those outside IGG Tool initiatives must comply because failure to do so can lead to regulatory penalties and exclusion from premium international markets,” he warned.

He also noted that many companies lack dedicated environmental compliance teams, making it challenging for them to stay up to date with environmental requirements. However, by undergoing regular environmental audits, they receive tailored management systems and improvement programs that help them address non-compliance issues efficiently.

The Business Case for Environmental Compliance

International market standards require businesses to maintain strict compliance in several key areas:

• Environmental protection – Sustainable land use, water conservation, and biodiversity preservation.
• Human resources management – Ensuring fair labor practices and workplace safety.
• Wildlife protection – Preventing habitat destruction and maintaining ecosystem balance.
• Sustainable resource use – Efficient water, energy, and raw material utilization.

Hamadi, encouraged businesses to take IGG Tools seriously and use them to enhance their environmental compliance efforts. He highlighted the importance of IGG Tools in aligning companies with both national and global sustainability standards, allowing them to access both domestic and international markets seamlessly.

Expanding IGG Tool to Smallholder Farmers

In response to concerns that IGG Tool primarily serves large-scale commercial farms, Hamadi,clarified that the tool is designed to be inclusive for all farming scales, from smallholder farmers to large agribusinesses.

“IGG Tool is not exclusive to large-scale investors. It is structured to benefit all players in the agricultural sector, including smallholder farmers in rural areas like Lulago in Kilindi, Tanga, or Ingilani in Iringa. The tool provides specific guidance on environmental conservation, water management, and sustainable farming practices that smallholder farmers can integrate into their operations,” he explained.

He acknowledged that smaller farmers may not always be required to undergo complex environmental audits, but IGG Tool still offers valuable guidelines to help them align with best practices in environmental conservation and agricultural sustainability.

A Call for Nationwide Adoption

Hamadi, concluded his remarks by urging farmers, agribusiness investors, and policymakers to embrace the IGG Tool as a blueprint for sustainable agricultural growth.

“As competition for resources intensifies, compliance will not be optional—it will be the only way forward. Whether you’re a large-scale investor or a smallholder farmer, sustainability practices are key to securing long-term success in agriculture,” he said.

Bridging the Compliance Gap: Smallholder Farmers and Environmental Standards

A participant raised a crucial question about how smallholder farmers—who sell their produce within Tanzania and across East Africa—can comply with environmental standards, particularly in a sector largely dominated by commercial farms.

The Overlooked Environmental Impact of Smallholder Farmers

Hon. Jitu Son (ACT Vice Chairman), addressing this concern, noted that while large commercial farms receive the most scrutiny for environmental compliance, smallholder farmers collectively pose a bigger environmental threat. He explained that unlike commercial farms, which undergo strict regulatory checks from institutions such as the National Environment Management Council (NEMC) and Water Basin Authorities, small-scale farmers often operate informally, making their cumulative environmental impact substantial.

“The reality is that smallholder farmers along major river basins, such as the Ruaha River, are responsible for large-scale environmental degradation. Unlike registered investors who must comply with environmental laws, a farmer who purchases five hectares of land near a river may clear the land without seeking environmental clearance. Now imagine millions of small-scale farmers doing the same—this has a much bigger impact than one regulated commercial farm,” he emphasized.

Regulatory Gaps and the Need for Better Oversight

The discussion highlighted how formal sector farms bear the burden of environmental regulations while informal smallholder farmers often escape scrutiny. Speaker 13, an experienced farmer from Manyara, pointed out the disparity:

“Formal farmers are heavily regulated. If I farm on 350 hectares, I must comply with regulations from NEMC, the Water Basin Authority, and other agencies. Meanwhile, an informal farmer cultivating 700 hectares nearby pays no regulatory fees and undergoes no environmental checks. Yet, we all compete in the same market.”

This inconsistency not only creates unfair competition but also undermines broader environmental conservation efforts. Regulatory authorities focus primarily on large-scale, easily traceable farms, leaving the cumulative impact of small-scale farmers largely unchecked.

Strategies to Enhance Smallholder Environmental Compliance

In response to these challenges, the discussion proposed several strategies to ensure smallholder farmers align with sustainability principles without being burdened by high compliance costs.

1. Strengthening Smallholder Capacity Through Localized Platforms
   • Leveraging cluster-level partnerships to provide smallholder farmers with environmental training.
   • Ensuring that cooperatives and agricultural NGOs educate farmers on sustainable land use and compliance.
2. Organized Environmental Missions for Smallholder Farmers
   • Conducting structured outreach programs to visit irrigation schemes and smallholder farms.
   • Training farmers directly on compliance requirements and best practices.
3. Scaling Up Demonstration Farms and Model Farmers
   • Establishing farmer-led demonstration sites to showcase sustainable practices.
   • Encouraging smallholder participation in Sustainable Rice Intensification (SRI) and climate-smart agriculture models.
4. Incentivizing Compliance through Market Access
   • Linking compliance with certification schemes that guarantee better market access for farmers.
   • Encouraging organic farming certification to open new revenue streams.

Integrating IGG Tools at All Farming Levels

Hon. Jitu Son concluded that compliance should not be driven solely by external certification requirements, such as Rainforest Alliance for exports. Instead, sustainable farming must become an inherent part of agricultural business ethics at all levels.

“Our environmental responsibility should not be dictated by international buyers alone. It should be embedded within our national farming standards and upheld by everyone—whether farming for local markets or exports,” he emphasized.

Environmental Sustainability and Governance: A Call to Action by SAGCOT CEO Geoffrey Kirenga

In a compelling conclusion, SAGCOT CEO Geoffrey Kirenga emphasized the urgent need for sustainable environmental practices, reinforcing the growing importance of Environmental, Social, and Governance (ESG) standards in agriculture.

Acknowledgment of Stakeholders

Kirenga began by expressing gratitude to all stakeholders who participated in the discussion. Special recognition was given to key contributors, including Honorable Jitu, who shared valuable firsthand experiences on the environmental challenges facing specific agricultural regions.

He also extended appreciation to professionals who provided technical insights from their respective fields.

The Urgency of Environmental Action

One of the most critical takeaways from the discussion was the rapid pace at which environmental degradation can occur if not addressed effectively. Kirenga warned that without proper intervention, land and natural resources could deteriorate beyond recovery. He stressed that in the past, environmental conservation was often considered a voluntary initiative. However, this perspective is rapidly changing as international markets enforce stringent sustainability standards for agricultural exports.

Compliance with Emerging Standards

Kirenga highlighted that new regulations are being established to mandate compliance with ESG principles. These standards impact all agricultural stakeholders, including farmers, exporters, and supply chain actors. He urged attendees to recognize the shift from voluntary environmental conservation to mandatory compliance with sustainability regulations.

The adoption of these ESG standards, which encompass environmental stewardship, social responsibility, and governance structures, is no longer optional. Failure to adhere to these principles could result in exclusion from lucrative international markets.

The Role of the IGG Tool in Sustainable Agriculture

A key initiative discussed was the Inclusive Green Growth (IGG) Tool, which SAGCOT is currently utilising. This tool aims to guide farmers and agribusinesses in integrating sustainable practices into their operations. Kirenga encouraged stakeholders to explore the IGG Tool further- https://sagcot.co.tz/2024/10/04/iggtools/

A Call to Action

In closing, Kirenga emphasized the importance of proactive adaptation to these emerging environmental standards. He urged stakeholders present to implement sustainable practices within their respective fields. By doing so, they would not only ensure compliance with international regulations but also contribute to the long-term resilience of Tanzania’s agricultural sector.

“The future of our agriculture sector depends on how we address sustainability today. Let us work together to make responsible environmental management a cornerstone of our growth strategy,” Kirenga concluded.

SAGCOT remains committed to supporting its partners and stakeholders in navigating these evolving standards, ensuring that Tanzania’s agricultural sector remains competitive and sustainable in the global market.