SAGCOT Centre: A Catalyst for Agricultural Transformation in Tanzania

The Southern Agricultural Growth Corridor of Tanzania (SAGCOT) Centre is a public-private partnership (PPP) that has become a driving force in Tanzania’s agricultural development. Launched in 2010 at the World Economic Forum in Dar es Salaam, SAGCOT has fostered inclusive growth, promoted sustainable practices, and attracted significant investment, solidifying its position as a key player in Tanzania’s agricultural landscape ¹. This report provides a comprehensive overview of SAGCOT Centre, delving into its history, mission, goals, initiatives, and impact on agricultural development in Tanzania.

About SAGCOT Centre

The SAGCOT Centre’s official website (sagcot.co.tz ³) serves as a central hub for information about the initiative. The website provides details about the Centre’s activities, partners, and publications. It also features news and updates on SAGCOT’s recent initiatives and achievements. The website highlights SAGCOT’s commitment to transparency and stakeholder engagement ⁴. Notably, the website emphasizes the growth of the SAGCOT partnership, with over 110 partners collaborating to drive agricultural transformation in Tanzania ⁵.

History of SAGCOT Centre

Tanzania, with its abundant arable land and favorable climate, has always held immense potential for agricultural development ⁶. Recognizing this potential, SAGCOT emerged from a vision to transform the nation’s agricultural sector into a sustainable and thriving engine of economic growth and food security ⁷. The initiative was officially launched in 2011, inaugurated first in Dar es Salaam by retired Prime Minister Pinda and subsequently at the World Economic Forum in Geneva by retired President Kikwete ⁸.

SAGCOT was conceived as a collaborative endeavor, uniting the government, the private sector, and development partners to tackle systemic challenges hindering the agricultural sector ¹⁰. In its early years, SAGCOT developed a comprehensive investment blueprint, outlining strategies for infrastructure development, enhanced market access, and the crucial inclusion of smallholder farmers ¹. The establishment of SAGCOT Centre Ltd. in 2011 provided the operational framework to translate the initiative’s vision into reality ¹¹. Notably, SAGCOT has been lauded as a prime example of ‘country ownership’ and multi-stakeholder engagement, effectively demonstrating how governments can mobilize diverse stakeholders to address national development challenges ¹⁰.

Mission and Goals of SAGCOT Centre

SAGCOT Centre’s mission is to catalyze responsible and inclusive agricultural investments in Tanzania’s Southern Corridor ¹². The Centre serves as a vital intermediary and facilitator, connecting various stakeholders, including government bodies, agribusinesses, small and medium-scale farmers, and development partners ³. At its core, SAGCOT aims to boost agricultural productivity, enhance food security, alleviate poverty, and ensure environmental sustainability by promoting the commercialization of smallholder agriculture ¹².

To achieve this mission, SAGCOT Centre has established the following key goals:

• Transform agriculture in the Southern Corridor: This involves promoting sustainable and commercially viable agricultural practices, enhancing productivity, and improving market access for farmers ⁹.
• Promote sustainable resource management: SAGCOT emphasizes environmentally sustainable practices, ensuring the responsible use of natural resources and minimizing the environmental impact of agricultural activities ⁹.
• Leverage public and private investments to spur growth: SAGCOT actively seeks to attract investments from both the public and private sectors to support infrastructure development, technology adoption, and value chain development ⁹.
• Promote smallholder engagement models that enable inclusivity: SAGCOT prioritizes the inclusion of smallholder farmers in commercial agriculture, ensuring they benefit from increased productivity and market access ⁹. This includes encouraging agribusinesses to incorporate the interests of small-scale farmers into their operations, fostering a more inclusive and equitable agricultural sector ¹³.

Furthermore, SAGCOT Centre plays an active role in advocating for policy and regulatory reforms essential for achieving its objectives ¹¹. This includes working with government agencies and other stakeholders to create an enabling environment for agricultural investment and growth.

SAGCOT’s Approach to Inclusive and Sustainable Agricultural Development

SAGCOT Centre is deeply committed to promoting inclusive and sustainable agricultural development in Tanzania. The initiative recognizes the crucial role of smallholder farmers in the agricultural sector and prioritizes their inclusion in commercial agriculture ⁹. SAGCOT’s approach involves empowering small-scale farmers by providing them with access to new technologies, improved market access, and opportunities for capacity building.

SAGCOT also emphasizes environmental sustainability, ensuring the responsible use of natural resources and minimizing the environmental impact of agricultural activities ⁹. The initiative promotes sustainable practices, such as agroforestry and climate-smart agriculture, to enhance resilience and protect the environment.

SAGCOT’s Cluster Approach

SAGCOT employs a unique cluster model approach to connect investors with smallholder out-grower schemes in the vicinity of large-scale farms throughout the Corridor ⁹. This approach fosters collaboration and creates economies of scale by bringing together farmers, agribusinesses, and service providers within a defined geographical area. The cluster model enables the participation of farmers of all scales, from smallholders to large-scale producers, allowing them to share the benefits derived from the clusters.

To further enhance inclusivity and ensure that smallholder farmers have a voice in shaping agricultural policies, SAGCOT actively partners with smallholder farmer organizations ⁹. These partnerships facilitate policy dialogues and enable smallholder farmers to engage in discussions on relevant policy matters, contributing to a more inclusive and participatory agricultural development process.

Environmental Sustainability Initiatives

Recognizing the importance of environmental sustainability in agricultural development, SAGCOT Centre has partnered with the Green Reference Group (GRG) ⁹. This partnership focuses on promoting environmentally sound practices within SAGCOT’s clusters. Through quarterly meetings and collaborative initiatives, SAGCOT and the GRG address critical environmental issues, such as water use, land management, and the adoption of sustainable technologies. This collaboration ensures that SAGCOT’s activities contribute to environmental conservation and the long-term sustainability of the agricultural sector.

Projects and Initiatives Undertaken by SAGCOT Centre

SAGCOT Centre has implemented a diverse range of projects and initiatives to achieve its goals and drive agricultural transformation in Tanzania. These initiatives are strategically designed to address key challenges and opportunities in the agricultural sector. Some notable examples include:

• SAGCOT Investment Project: Implemented with support from the World Bank, this project focuses on increasing the adoption of new technologies and marketing practices by smallholder farmers ¹⁴. It involves strengthening SAGCOT support institutions, fostering business linkages, and improving access to finance for small and medium-sized enterprises (MSMEs) in agribusiness value chains.
• Tanzania Sustainable Soybean Initiative (TSSI): This initiative aims to promote the sustainable production and marketing of soybeans in Tanzania ¹⁶. It involves conducting research, providing training to farmers, and facilitating market linkages for soybean producers.
• Agroforestry Initiatives: SAGCOT is promoting agroforestry practices in various regions, including Morogoro, Tanga, and Zanzibar ². These initiatives encourage farmers to cultivate high-value tree spices and fruit crops, diversifying their income sources and contributing to environmental conservation.
• YEFFA Project: Launched in December 2024, the YEFFA (Youth Employment in Farming and Agribusiness) project aims to empower youth in agribusiness and create job opportunities in the agricultural sector ³. This initiative focuses on providing training, mentorship, and financial support to young people engaged in agriculture.

Impact of SAGCOT Centre’s Work on Agricultural Development in Tanzania

SAGCOT Centre has made significant contributions to agricultural development in Tanzania, driving positive change across various aspects of the sector. The initiative has played a crucial role in:

• Attracting Investment: SAGCOT has successfully mobilized substantial investments in the agricultural sector. By 2024, the initiative had attracted USD 1.3 billion in private investments and USD 2.2 billion in public investments within the SAGCOT Corridor ².
• Increasing Productivity: SAGCOT’s efforts have led to increased agricultural productivity in the Southern Highlands. Over 859,298 hectares are now under profitable production, benefiting nearly 900,000 farmers ².
• Improving Livelihoods: SAGCOT has contributed to improved livelihoods for farmers in the region. Farm revenues have surged to USD 254 million, demonstrating the positive economic impact of the initiative ².
• Promoting Inclusive Growth: SAGCOT has prioritized the inclusion of smallholder farmers in commercial agriculture, ensuring they benefit from increased productivity and market access ¹.
• Enhancing Sustainability: SAGCOT has promoted sustainable agricultural practices, contributing to environmental conservation and the responsible use of natural resources ⁹.

Furthermore, SAGCOT is committed to the inclusion of women and youth in commercial agriculture ¹⁹. The initiative recognizes the importance of gender equality and youth empowerment in achieving sustainable agricultural development.

SAGCOT and National Agricultural Development Strategies

SAGCOT’s activities are closely aligned with and supportive of the Agriculture Sector Development Programme (ASDP) II strategy ¹⁹. ASDP II is a national strategy aimed at transforming Tanzania’s agricultural sector. SAGCOT serves as a pilot for various interventions within ASDP II, providing valuable lessons and best practices that can be scaled up by the government and applied to other regions in Tanzania.

Partnerships and Collaboration

SAGCOT Centre recognizes the importance of partnerships and collaboration in driving agricultural transformation. The initiative has built a diverse network of partners, each contributing unique expertise and resources to achieve SAGCOT’s goals. This collaborative approach has been instrumental in SAGCOT’s success ⁹.

Partner Type	Examples	Description
Private Sector Companies	Kilombero Sugar Company, ASAS Dairies, Unilever Plc 20	Companies involved in various agricultural sub-sectors, contributing investment, technology, and market access.
Government of Tanzania	Ministry of Agriculture, Regional Administrations 20	Government bodies that provide policy support, regulatory frameworks, and coordination.
Development Partners	USAID, UKAID 15	International development organizations that provide funding, technical expertise, and capacity building support.
Research Organizations	CGIAR Centers, Universities 5	Research institutions that conduct studies, develop new technologies, and promote innovation in agriculture.
Civil Society Organizations (CSOs)	CARE, WWF 5	CSOs that promote community engagement, advocate for policy reforms, and ensure the inclusion of marginalized groups.
Farmer Organizations	National Networks of Farmers’ Groups in Tanzania 5	Farmer organizations that empower smallholder farmers, promote collective action, and facilitate access to markets and services.

Funding Sources and Partners of SAGCOT Centre

SAGCOT Centre receives funding from a variety of sources, including donor agencies, the government of Tanzania, and civil society organizations ²¹. The SAGCOT Catalytic Trust Fund (SCTF) plays a crucial role in mobilizing resources to support the initiative’s activities ²¹. SAGCOT has also partnered with organizations like CARE and WWF to leverage investments and resources for inclusive green growth programs ²².

Recent Activities and News

SAGCOT Centre remains actively engaged in driving agricultural transformation in Tanzania. Some recent activities and news include:

• Deepened Collaboration with Norway: In November 2024, SAGCOT and Norway strengthened their collaboration to further drive agricultural transformation in Tanzania ². Norway committed to providing additional funding to support SAGCOT’s strategic plan for 2025-2027.
• Expansion of SAGCOT Initiative: SAGCOT plans to scale its successful model beyond the SAGCOT Corridor to other regions across Tanzania ². This expansion will involve identifying high-potential agricultural clusters and priority crops using the Commodity Compact Approach.
• Focus on Soil Health: SAGCOT is emphasizing the importance of soil health for sustainable agricultural development ¹⁸. The initiative is promoting practices that improve soil fertility and enhance resilience to climate change.
• Launch of Apple Juice and Cider Production: In November 2024, Tamu Tamu Tanzania, a SAGCOT partner, launched an initiative to produce apple juice and cider, showcasing the potential for value addition in the agricultural sector ²³.

Conclusion

SAGCOT Centre has undeniably become a pivotal player in Tanzania’s agricultural landscape. By fostering public-private partnerships, promoting inclusive growth, and driving sustainable practices, SAGCOT has significantly contributed to increased productivity, improved livelihoods, and enhanced food security in the country. The initiative’s continued efforts to attract investment, expand its reach, and promote innovation position it as a key catalyst for agricultural transformation in Tanzania.

However, it is important to acknowledge the challenges inherent in implementing large-scale agricultural initiatives like SAGCOT. Factors such as shifting government priorities, land tenure issues, and the complexities of engaging diverse stakeholders can pose challenges to achieving SAGCOT’s ambitious goals ⁷. Continued adaptation, stakeholder engagement, and a commitment to addressing emerging challenges will be crucial for SAGCOT’s long-term success.

Despite these challenges, SAGCOT’s achievements to date demonstrate its potential as a model for agricultural development in other countries and its applicability to other sectors ¹⁰. By learning from SAGCOT’s experiences and adapting its approach to different contexts, other countries and sectors can leverage the power of public-private partnerships and inclusive growth to drive sustainable development.

Works cited

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