SAGCOT’s 2018 Annual Report: A Year of Dynamic Growth and Strategic Expansion

Dar es Salaam, Tanzania: The Southern Agricultural Growth Corridor of Tanzania (SAGCOT) has released its 2018 Annual Report, highlighting a year marked by significant growth, strategic expansion, and impactful partnerships in Tanzania’s agricultural sector.

Noteworthy Developments and Strategic Cluster Expansion:

• Presidential Visit and Factory Commissioning: Tanzanian President visited Silverlands, commissioning an animal feed factory capable of processing 40 MT per hour, signifying high-level support for the sector​​.
• Mbarali Cluster: Establishment and strengthening of the Mbarali Cluster, focusing on new value chains including avocado, poultry, rice, and sunflower, alongside existing ones like dairy and potato​​.
• Ihemi Cluster: Further development and support of the Ihemi Cluster, with a focus on improving public-private partnerships and production of improved heifers​​.
• Launch of the Third Cluster: Official launch of the Kilombero Cluster, expanding SAGCOT’s reach and influence in the region​​.

Building Relationships and Enhancing Understanding:

• Improved Cross-Linkages: Strengthening relationships within SAGCOT Centre Ltd (SCL) departments and the Board of Directors, including conducting a Matching Grant Fund workshop and awareness campaigns for the Kilombero Cluster​​.

Implementation of a Partner Management Plan:

• Expanding the Partnership Network: The SAGCOT partnership network grew to include 116 partners, a strategic move that ensures a diverse mix contributing to the SAGCOT Cluster vision in Ihemi and Mbarali​​.

Financial Growth and Technological Advancements:

• Investment Increases: Investments committed by SAGCOT Registered Partners surged by USD 341 million, a 74.2% increase from the previous year​​.
• Technology Adoption: Private companies incorporated 13,018 additional farmers into their out-grower schemes, demonstrating a 44% increase in the adoption of improved technologies​​.

Sector-Specific Achievements:

• Dairy Sector: Increased market access and production, with notable financial support from Tanzania Agricultural Development Bank (TADB) for the Njombe Milk Factory​​.
• Soya Production: Significant growth in soya production, with the removal of VAT on soya seed cake boosting farmer incomes and market access​​.
• Potato Sector: Increased potato seed multiplication and the introduction of improved varieties, enhancing smallholder farmer capabilities​​.
• Tomato Value Chain: Enhanced market access and the construction of tomato collection centres, along with the release of new tomato varieties​​.
• Tea Industry: Formation of farmer cooperatives and increased smallholder production, with a new factory processing 50 metric tonnes of tea daily​​.

Promotion of Sustainable and Inclusive Growth:

• Green Growth Compliance: SAGCOT’s commitment to sustainable environmental management and social inclusivity was demonstrated through the Green Growth Compliance Assessment Report, impacting over 32,000 farmers​​.

Key Takeaways and Challenges:

• Challenges Ahead: Despite these successes, challenges remain in improving the business environment, addressing infrastructure development, and providing adequate financing for expansion in farming and processing businesses​​.
• Looking Forward: SAGCOT’s approach continues to evolve, with a focus on strengthening partnerships and addressing bottlenecks in investment and support for smallholder farmers.

2018 was indeed a transformative year for SAGCOT, marked by strategic growth, increased investment, and significant advancements in agricultural productivity and sustainability. These efforts are pivotal in empowering smallholder farmers and advancing Tanzania’s agricultural sector towards a more sustainable and prosperous future.

The SAGCOT 2018 Annual Report highlights significant impact numbers:

1. New investments by SAGCOT partners increased by 74.2%, from USD 456 million in 2017 to USD 797 million in 2018.
2. 13,018 additional farmers accessed and correctly applied improved technologies, a 44% increase from the previous year.
3. The cumulative total of farmers reached by the end of 2018 was 103,364, a 65% increase.
4. Six new value chains were prioritized in the Mbarali Cluster: avocado, poultry, rice, sunflower, dairy, and potato.
5. The total number of SAGCOT partners grew to 116 in 2018.
6. The partnership facilitated the construction of 8 tomato collection centers and the release of 5 new tomato varieties.
7. Three new farmer cooperatives were formed in the tea sector, with a total of 1,278 smallholder farmers.