Tanzania’s Agricultural Revolution: Inside SAGCOT’s Transformative Journey

Kilimokwanza.org Reporter

As Tanzania continues its march towards economic growth, one sector stands at the heart of this transformation: agriculture. The Southern Agricultural Growth Corridor of Tanzania (SAGCOT), a bold initiative that began in 2011, has been at the forefront of this change. Under CEO Godfrey Kirenga’s leadership, SAGCOT has revolutionized Tanzania’s agricultural landscape and set a benchmark for how public-private partnerships can drive sustainable development in Africa.

In a recent conversation with Kirenga, he reflected on SAGCOT’s decade-long journey, detailing the challenges, triumphs, and lessons learned along the way. His insights show how SAGCOT has evolved from a concept into a powerful transformation engine for Tanzania’s rural communities.

The Birth of a Vision

When SAGCOT was conceived, Tanzania’s agricultural sector was ripe with potential but shackled by inefficiencies. With 44 million hectares of arable land, the country was endowed with rich natural resources. However, only a quarter of this land was being utilized, and much of it was under small-scale, subsistence farming. The challenges were multifaceted: poor infrastructure, limited access to finance, and outdated farming techniques, to name a few. Tanzania needed a new approach—one that could unlock the sector’s potential and drive economic growth.

Kirenga described how the idea of an agricultural growth corridor took shape. “We wanted to create a model that would bring together public and private stakeholders to address the bottlenecks in the agricultural sector,” he explained. The goal was not just to improve productivity but to build a sustainable ecosystem where smallholder farmers and large agribusinesses could coexist and thrive.

The early stages of SAGCOT’s development involved extensive collaboration. Partners like Yara, Prorustica, and AgDevCo played pivotal roles in shaping the initiative. Their combined expertise led to the creation of the SAGCOT Concept Note, which was presented at the World Economic Forum on Africa in 2010. The reception was overwhelmingly positive, paving the way for the development of a more detailed implementation plan—the SAGCOT Investment Blueprint.

Building a Foundation

The SAGCOT Investment Blueprint, unveiled in 2011, was a comprehensive plan that outlined the investments needed to transform agriculture within the corridor. The blueprint identified six agricultural clusters, each with specific challenges and opportunities. The estimated investment required was $3.5 billion, a staggering sum that underscored the scale of the ambition.

Kirenga recounted the significance of the blueprint’s launch. “We knew that this was a turning point. The blueprint wasn’t just a plan; it was a roadmap for how we could drive real, tangible change in Tanzania’s agricultural sector.” The blueprint called for investments in backbone infrastructure, marketing, storage, processing facilities, and on-farm improvements. It was designed to bring more than 350,000 hectares under production, increase crop yields, and ultimately benefit over two million people.

The official registration of the SAGCOT Centre in 2011 marked another critical milestone. Modeled after Prorustica’s catalytic coordination approach, the Centre was established to coordinate investments and actions across the corridor. Kirenga emphasized the importance of the Centre’s role: “Our task was to bring together diverse players—government, businesses, NGOs—and create a cohesive strategy that could address multiple challenges simultaneously.”

Navigating Challenges and Evolving Strategies

The journey, however, was far from smooth. Kirenga openly discussed the challenges that SAGCOT faced in its early years. Coordinating such a vast and diverse group of stakeholders across multiple geographic regions was no easy feat. There were setbacks, particularly in establishing the Catalytic Fund, which was envisioned to de-risk early-stage agricultural investments.

“We had to adapt,” Kirenga noted. “Our initial models needed refining. The agricultural sector is dynamic, and we had to be flexible in our approach to ensure success.” Despite these challenges, SAGCOT persevered, continuously evolving its strategies to meet emerging needs and capitalize on new opportunities.

One of the most significant adaptations was the shift from a lean facilitation model to a more robust institution. By 2019, SAGCOT had transformed into a trusted and credible organization with a strong presence on the ground. Kirenga highlighted this evolution as key to SAGCOT’s success: “Our deep engagement with stakeholders, particularly at the local level, allowed us to build trust and effectively address the concerns of farmers and businesses alike.”

Achieving Impact at Scale

The impact of SAGCOT’s work is undeniable. Over the past twelve years, the initiative has driven substantial agricultural growth in the Southern Highlands, bringing international attention to Tanzania’s agricultural sector. The initiative has not only increased productivity but also improved livelihoods, contributing to broader economic development in the region.

Kirenga was particularly proud of SAGCOT’s role in promoting inclusive agribusiness investments. “We’ve been able to influence policy and create an environment where both smallholder farmers and large agribusinesses can succeed,” he said. This approach has attracted significant investments from both local and international players, further boosting the sector’s growth.

The initiative’s success has also inspired other African countries to consider adopting similar models. “Our experience with SAGCOT has shown that the agricultural corridor approach can be a powerful tool for driving development,” Kirenga stated. “We are now looking at hoextendinghis model to other regions in Tanzania and beyond.”

The Future of SAGCOT

As SAGCOT looks to the future, the vision remains ambitious. The Tanzanian government’s recent mandate to expand the corridor approach to other regions clearly indicates the initiative’s success. Kirenga is optimistic about the next phase of SAGCOT’s journey. “We’ve learned so much over the past decade. Now, we’re ready to apply tapply those lessons

In the coming years, SAGCOT plans to deepen its investment coordination role in the Southern Highlands while expanding its efforts into new corridors. The focus will be on leveraging new technologies, fostering innovation, and scaling up successful models to achieve even greater impact.

Kirenga’s reflections on SAGCOT’s journey underscore the power of collaboration, innovation, and adaptation in driving sustainable development. As Tanzania continues to build on this foundation, SAGCOT’s legacy will undoubtedly serve as a blueprint for other nations seeking to transform their agricultural sectors and improve the lives of their people.

“We’re just getting started,” Kirenga concluded. “The potential for growth and impact is immense, and we’re committed to making that potential a reality.”

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