SAGCOT and TADB Forge Strategic Alliance to Boost Agribusiness Financing in Tanzania

Dar es Salaam, March 5, 2025 – The Southern Agricultural Growth Corridor of Tanzania (SAGCOT), evolving into the Agricultural Growth Corridors of Tanzania (AGCOT), has entered into a strategic Memorandum of Understanding (MoU) with the Tanzania Agricultural Development Bank (TADB). This landmark agreement aims to unlock Tanzania’s vast agricultural potential by enhancing agribusiness financing, identifying investible business opportunities, and promoting sustainable agricultural growth.

The partnership brings together SAGCOT Centre Limited (SCL), a leader in fostering inclusive and sustainable agricultural value chains, and TADB, Tanzania’s premier development finance institution dedicated to transforming and commercializing the agriculture sector. The two entities will leverage innovative financing solutions to support smallholder farmers, agribusiness enterprises, and value chain actors through this collaboration.

A Commitment to Sustainable Agricultural Transformation

SAGCOT has played a pivotal role in mobilizing private-sector agribusiness investments in Tanzania. By integrating public sector commitments with private investments, the initiative has catalyzed rapid and sustainable growth in the agricultural sector. Over the years, SAGCOT has developed strategic tools, such as Inclusive Green Growth (IGG), Cluster Partnerships, and Commodity Compacts, which have proven instrumental in de-risking agricultural investments and fostering an enabling business environment.

On the other hand, TADB has been at the forefront of driving agricultural commercialization through innovative financing solutions. The bank’s core mission is to strengthen financial services that boost agricultural productivity, enhance value addition, and improve market access for smallholder farmers and agribusinesses. Through this MoU, TADB will tap into SAGCOT’s ecosystem of partners and agribusiness models to support priority agricultural value chains.

Key Areas of Collaboration

The MoU outlines several areas where SAGCOT and TADB will collaborate to enhance Tanzania’s agricultural landscape, including:

• Innovative Financing Solutions—The two institutions will develop tailored financial instruments to support agribusinesses and ensure financial inclusion for key value-chain players. This includes mobilizing both private and public resources to drive agricultural investments.
• Climate Resilience and Sustainability—Agriculture is highly vulnerable to climate change, so the partnership will introduce financing mechanisms such as blended finance and risk alleviation interventions. The IGG tool assessment score will also be integrated into funding decisions to promote climate-resilient agribusinesses.
• Commodity Investment Unit (CIU) – The collaboration aligns with SAGCOT’s six-year strategic plan (2025-2030) and will focus on operationalizing Commodity Compacts. This initiative aims to enhance productivity and scale up agribusiness investments.
• Knowledge Sharing and Technical Assistance – The agreement fosters a structured knowledge exchange between the two entities, ensuring that best practices in financing and agribusiness development are shared and scaled across Tanzania.

Strengthening Public-Private Partnerships

At the signing ceremony, Geoffrey I. Kirenga, CEO of SAGCOT Centre Limited, highlighted the importance of strategic collaborations in driving Tanzania’s agricultural transformation.

“This MoU with TADB marks a significant milestone in our efforts to accelerate agribusiness investments. By leveraging TADB’s financial expertise and SAGCOT’s value chain development approach, we are creating a robust ecosystem that supports farmers and agribusinesses at all levels,” said Kirenga.

On his part, Frank Nyabundege, Managing Director of TADB, emphasized the bank’s commitment to providing financing solutions that foster agricultural industrialization.

“At TADB, we believe that strategic partnerships like this with SAGCOT will enable us to de-risk agricultural investments and scale up agribusiness financing. By working together, we can unlock economic opportunities for smallholder farmers and position Tanzania as a key player in the regional and global agricultural markets,” said Nyabundege.

Governance and Implementation

The MoU establishes a governance structure to ensure effective implementation, with designated focal points from both SAGCOT and TADB. John Banga Nakei, Acting Head of Clusters at SAGCOT, and Afia Sigge, Director of Business Development at TADB, will oversee the execution of the agreement. Regular reviews and consultations will be conducted to monitor progress, address challenges, and refine strategies where necessary.

Additionally, the collaboration roadmap will outline specific roles, responsibilities, and activities for each party. By aligning efforts with Tanzania’s agricultural development goals, the partnership is set to drive impactful results in the sector.

A Vision for the Future

This partnership between SAGCOT and TADB is expected to play a critical role in transforming Tanzania’s agriculture sector into a commercially viable and competitive industry. With a strong focus on financing, innovation, and sustainability, the collaboration aims to create a thriving agricultural ecosystem that benefits farmers, agribusinesses, and the entire economy.