Tanzania’s Success Story: From SAGCOT to AGCOT – A Nation Forging Agricultural Prosperity

Introduction: Sowing the Seeds of Change in Tanzania’s Highlands

BY KILIMOKWANZA.ORG TEAM

Tanzania, a nation deeply rooted in its land and people for sustenance and economic growth, has embarked on a transformative journey in its agricultural sector. This evolution began with the Southern Agricultural Growth Corridor of Tanzania (SAGCOT) in , a public-private partnership designed to unlock the agricultural potential of the Southern Highlands. Building on this success, Tanzania has now launched the Agricultural Growth Corridors of Tanzania (AGCOT), a nationwide initiative. This expansion signifies more than just a name change; it represents a significant stride towards modernizing agriculture, ensuring food security, boosting the national economy, and achieving Tanzania’s long-term development aspirations. This article chronicles SAGCOT’s origins and achievements, the catalysts for its national expansion, and the promising future AGCOT holds for Tanzania’s agricultural landscape.

1. The Genesis of SAGCOT ( – ): Laying the Groundwork for Growth

Tanzania’s agricultural resurgence was inspired by the Kilimo Kwanza (Agriculture First) Vision, a national strategy recognizing agriculture’s central role in development. In this context, SAGCOT was conceived as a collaborative effort between the public and private sectors to harness the vast agricultural opportunities within the Southern Highlands. Officially launched in May , both nationally and internationally, SAGCOT aimed to catalyze agricultural transformation within a specific corridor. A key element of this launch was the Investment Blueprint (IBP), which detailed investment opportunities, the institutional framework, and necessary steps for regional development.

The SAGCOT Centre was established as a dedicated coordination unit to guide this ambitious undertaking. Its core mandate was to facilitate collaboration among the government, businesses, development partners, civil society organizations, and, crucially, the farming community. Since its inception, the SAGCOT Centre has been instrumental in mobilizing resources from diverse sectors – private, public, and non-governmental – aligning their efforts towards the shared objective of agricultural transformation.

SAGCOT’s strategic approach centered on fostering partnerships, promoting investments, and creating a supportive environment for agricultural growth. It focused on key value chains, working to integrate smallholder farmers into commercial activities, enhance productivity, and improve market connections. This initial phase established SAGCOT as a successful model for agricultural development in Tanzania, laying the foundation for future progress.

2. SAGCOT’s Tangible Achievements: Cultivating a Corridor of Progress

Over the course of a decade, SAGCOT has yielded impressive results, demonstrating the power of collaboration and strategic investment. By the end of the fiscal year , total investments in the SAGCOT Corridor reached USD billion, exceeding the target of USD billion by %. This remarkable achievement highlights SAGCOT’s effectiveness in attracting and mobilizing resources for sustainable development.

An analysis of these investments reveals a strong commitment from both public and private sectors. The public sector contributed USD billion (% of the total), largely driven by infrastructure development, particularly in energy (TANESCO) and roads, which has been vital for agricultural growth and market access. The private sector contributed USD billion (% of the total), focusing on agribusinesses, processing, inputs, and value chain development.

Beyond the scale of investment, SAGCOT has significantly impacted the lives of Tanzanian farmers. It has successfully connected over , smallholder farmers with major private investors across key value chains, leading to enhanced productivity and market linkages. This integration has resulted in a cumulative increase in farmers’ income of USD million.

SAGCOT’s dedication to sustainable agriculture is also evident in its promotion of Climate-Smart Agriculture (CSA) practices. By FY , over , hectares were managed using CSA methods, a substantial increase from the baseline year, indicating a growing adoption of practices that boost productivity while protecting the environment.

SAGCOT’s success has been underpinned by numerous strategic partnerships and projects, including initiatives like the USDA Poultry Project, IFC’s engagement with SCL, USAID’s post-harvest loss initiatives, and AGRA’s youth projects. Crucial support from the Government of Tanzania, the Royal Norwegian Embassy, the Canadian Government, and other valued partners has also been instrumental. The inauguration of the Ruaha River Bridge and the Kidatu–Ifakara road by President Samia Suluhu Hassan in August , a significant infrastructure investment within the SAGCOT Corridor, further emphasizes the government’s commitment to the region’s potential.

The SAGCOT Centre has actively expanded its network, growing from partners in to partners by December . These new partners, predominantly local companies, bring vital expertise in areas such as ICT solutions, soil improvement, processing, and agricultural inputs.

3. National Demand and the Presidential Directive: Scaling Success Across Tanzania

The significant achievements and transformative impact observed in the SAGCOT Corridor garnered attention from stakeholders in other strategically important regions of Tanzania, including the Mtwara, Central, and Northern Corridors. Recognizing the potential of the SAGCOT model to replicate its success in their own diverse agro-ecological zones, these stakeholders advocated for their inclusion in a similar growth-oriented initiative.

Responding to this widespread demand and acknowledging the critical role of agriculture in achieving Tanzania’s broader development objectives, President Samia Suluhu Hassan issued a landmark directive on March , . During the launch of the African Food Systems Platform in Dar es Salaam, the President instructed SAGCOT to extend its efforts to encompass agricultural corridors throughout the nation. This pivotal decision marked a national endorsement of the SAGCOT approach as a key driver of agricultural transformation.

Further solidifying this commitment, President Hassan established the Presidential Food and Agriculture Delivery Council and appointed the CEO of SAGCOT Centre as a member, underscoring the importance of SAGCOT’s experience and leadership in shaping the national agricultural agenda.

Following this presidential directive, the Minister for Agriculture, Hon. Hussein Bashe, played a crucial role in leading the transition. In April , he spearheaded the 3rd National Consultation on the SAGCOT expansion strategy, endorsing and directing the nationwide rollout, with an initial focus on the Mtwara, Central, and Northern Corridors. He emphasized that these new corridors would adopt a similar partnership-driven approach to SAGCOT, tailored to their specific agricultural ecological zones or clusters. The design and implementation of these expanded efforts would be guided by investment blueprints for each corridor, identifying key stakeholders, business and investment opportunities, and crucial clusters within the regions.

4. The Birth of AGCOT: Ushering in a New Era for Tanzanian Agriculture

In response to the presidential directive and the overwhelming demand from agricultural stakeholders nationwide, SAGCOT is now evolving into the Agricultural Growth Corridors of Tanzania (AGCOT). This transition signifies a pivotal moment in Tanzania’s agricultural history, scaling a successful regional model to a national level.

AGCOT remains committed to its core values, prioritizing investments that strengthen food security and nutrition. It will maintain a strong focus on the inclusion and transformation of smallholder farmers, empowering their transition from subsistence farming to viable agribusinesses. Simultaneously, AGCOT is dedicated to ensuring environmentally sustainable agricultural development. Essentially, AGCOT aims to be the leading force in Tanzania’s drive to transform and modernize its food systems.

Reflecting this significant evolution, the SAGCOT Centre has officially been renamed the AGCOT Centre. The AGCOT Centre will continue its vital work in fostering a more favorable policy environment conducive to agricultural transformation in Tanzania. It recognizes that a supportive business climate is essential for ensuring access to knowledge and facilitating efficient, well-functioning, and sustainable agricultural value chains. AGCOT represents a bold step towards a brighter future for Tanzania’s agriculture and its people, building upon the solid foundation and proven success of SAGCOT.

5. Strategic Alignment with National Development Frameworks

The transition from SAGCOT to AGCOT is deeply aligned with Tanzania’s overarching national development aspirations and strategies. AGCOT is designed to be a key instrument in achieving the ambitious goals outlined in Tanzania’s Development Vision (now evolving into Vision ) and the New Agriculture Master Plan (AMP ).

Complementing Vision is the Agriculture Master Plan (AMP ), a guiding roadmap for food systems transformation in Tanzania. The AMP has the ambitious goal of boosting Agricultural GDP to $ billion, increasing exports to $ billion, doubling smallholder income, and significantly reducing undernourishment. The SAGCOT IS recognized as Flagship Number 7 in the Master Plan. Consequently, the SAGCOT Centre has been mandated to expand its model to the Mtwara, Central, and Northern Corridors as part of the AMP implementation. AGCOT serves as the national vehicle to deliver this transformation, aligning with the AMP ‘s phased approach of Expansion → Industrialization → Structural Shift → Maturation. AGCOT will be instrumental in the delivery of AMP Flagships through tailored regional models.

AGCOT will continue to advocate for closer collaboration among all stakeholders in the crops, livestock, fisheries, and other allied sectors crucial for agricultural transformation, such as energy, infrastructure, and communications. Special emphasis will be placed on scaling up the SAGCOT approach, which is built around cluster compacts, commodity compacts, and the Mkulima kwa Mkulima Initiative (farmer-to-farmer initiative).

6. AGCOT’s Strategic Pillars for Nationwide Transformation ( – )

Building on the experiences and successes of SAGCOT, the AGCOT Strategy for outlines a clear roadmap for achieving nationwide impact, anchored in two primary pillars:

• Deepening the Impact within the SAGCOT Corridor: Recognizing the remaining potential in the Southern Highlands, AGCOT will continue to intensify its efforts in the existing SAGCOT clusters (Ihemi, Mbarali, Kilombero, Sumbawanga, Ludewa, and Rufiji). This involves scaling up successful interventions, further increasing smallholder farmer incomes, and enhancing overall agricultural productivity. The ongoing implementation of Compact Agreements in regions like Ihemi and Kilombero demonstrates this continued commitment. AGCOT will continue to foster strategic partnerships within key value chains such as sugar, dairy, tea, spice, rice, and sunflower, building on the progress already achieved.
• Expansion to Other Agricultural Corridors in Tanzania: The core of AGCOT’s new mandate is replicating the proven SAGCOT model in the Mtwara, Central, and Northern Corridors. This expansion will be guided by tailored blueprints for each new corridor, considering their unique agro-ecological conditions and development priorities. The Agricultural Transformation Office (ATO) will collaborate with AGCOT Centre Limited (ACL) to prepare the Investment Blueprint (IBP) for these three new corridors in , involving the identification of key stakeholders, clusters, and priority value chains. A crucial aspect of this expansion will be effectively managing the expectations of all partners, engaging with local authorities, and establishing transparent communication channels to garner support and address potential challenges. AGCOT will strategically leverage the lessons learned from over a decade of operations in the SAGCOT corridor to ensure a more efficient and streamlined expansion, prioritizing scalability, sustainability, and adaptability.

7. AGCOT Centre: The Engine Room for National Agricultural Growth

The AGCOT Centre will continue to be the driving force behind this nationwide agricultural transformation. Its core functions remain critical:

• Facilitating relationships and building coalitions among stakeholders: The AGCOT Centre will act as a neutral facilitator, nurturing strategic partnerships between the government, agro-industries, SMEs, small and medium-scale farmers, and other key players in the agricultural ecosystem.
• Advising the government on national strategies and policies: Drawing on its experience and expertise, the AGCOT Centre will continue to play a key role in shaping national policies that promote inclusive and sustainable agricultural development. Its contributions to policy initiatives like the Agenda Investment Roadmap, the National Agriculture Insurance Scheme, and the Agriculture Master Plan highlight this crucial advisory role.
• Advocating for climate-smart agriculture: Promoting the adoption of climate-smart food systems remains a central pillar of AGCOT’s strategy, working closely with private sector partners, the government, and other actors to build resilience and sustainability across agricultural value chains.

To further enhance its effectiveness, the AGCOT Centre will establish key operational units, including a Commodity Investment Unit to attract funding and strengthen commodity compacts, and an Information Hub to facilitate knowledge sharing and coordination.

8. Real Stories, Real Change: Inspiring a National Movement

The impact of SAGCOT offers a powerful preview of AGCOT’s transformative potential. Numerous real stories of change demonstrate the tangible benefits of this model:

• Igoma Potato Farmers: Experienced increased market prices and accessed significant agricultural loans through SAGCOT’s facilitation.
• Njombe Milk Factory: Provides a stable market for dairy farmers, ensuring consistent income.
• Avocado Boom in Njombe: Established the region as Tanzania’s avocado capital, creating youth employment and new income streams through export-quality production.
• Agroforestry & Climate Resilience: Scaling of tree spice agroforestry in various regions and the promotion of CSA practices have enhanced productivity while preserving the environment.
• Raha Alyce – Raha Vegetable Farm: Gained confidence, connections, and a clear path to scale up her agribusiness through SAGCOT’s support.
• Praxeda Melkior – Migeto Agribusiness: Transformed her passion into a thriving agribusiness through the exposure and opportunities provided by SAGCOT.

These inspiring stories illustrate the real-world impact of SAGCOT’s interventions and provide a strong foundation of hope and expectation for the nationwide rollout under AGCOT.

9. Enabling Environment and Strategic Initiatives for National Impact

AGCOT will continue to prioritize creating a supportive environment for agricultural growth through various strategic initiatives, including:

• Policy Advocacy: Actively engaging with the government to strengthen agricultural policies, address regulatory and tax issues identified by partners, and promote equitable opportunities for all stakeholders.
• Value Chain Strategies: Developing and implementing comprehensive strategies for key value chains, such as the National Poultry Development Strategy and the National Soybean Development Strategy, to address specific challenges and unlock growth potential.
• Scaling Climate-Smart Agriculture: Expanding the adoption of CSA practices through projects like TSSI, training farmers on Good Agricultural Practices, and promoting sustainable farming methods.
• Partnership Facilitation: Actively attracting and managing a diverse portfolio of partners who provide access to improved inputs, technologies, and markets for farmers. AGCOT’s successful organization of events like Nanenane demonstrates its commitment to strengthening agricultural partnerships and fostering innovation.

10. Monitoring, Evaluation, and Sustained Funding for Long-Term Success

AGCOT is committed to a rigorous approach to monitoring and evaluation, ensuring that its interventions are effective and achieving the desired outcomes. A comprehensive Result Framework with both quantitative and qualitative indicators will be used to track progress and inform decisions on scaling up, revising, or scaling down interventions as needed.

Recognizing the importance of sustained funding, AGCOT is actively pursuing diverse fundraising initiatives and strategic partnerships to support its strategy.

A Nation United for Agricultural Prosperity

The transition from SAGCOT to AGCOT represents a significant milestone in Tanzania’s journey towards agricultural transformation and economic prosperity. Building on the solid foundation of SAGCOT’s proven success, AGCOT embodies a national commitment to modernizing the agricultural sector, empowering smallholder farmers, ensuring food security, and driving sustainable economic growth. By strategically aligning with national visions like Vision and the Agriculture Master Plan , AGCOT is poised to play a pivotal role in achieving Tanzania’s ambitious development goals. The collaborative spirit that defined SAGCOT will continue to be the driving force behind AGCOT, uniting the government, private sector, development partners, and farming communities in a shared vision of a thriving agricultural landscape that benefits all Tanzanians. Tanzania’s success story, rooted in the fertile soils of its land and the unwavering determination of its people, is now entering an exciting new chapter with the nationwide promise of AGCOT.