Investment Opportunities Available in Southern Agricultural Growth Corridor of Tanzania ( SAGCOT )

Agriculture is the basis of Tanzania’s economy. It is the major source of employment, a significant export earner and an important component of the national GDP. Yields are low, but with improved access to finance, infrastructure, modern farming inputs and know-how, Tanzania’s smallholder farmers could achieve much higher yields, allowing them to sell into regional and international markets.

Launched at WEF Africa in 2010, SAGCOT is a public-private partnership that aims to boost agricultural productivity in Tanzania and the wider region, and thereby achieve the country’s agricultural strategy. SAGCOT will promote “clusters” of profitable agricultural farming and services businesses, with major benefits for smallholder farmers and local communities. By catalyzing large volumes of responsible private investment, the initiative aims to deliver rapid and sustainable agricultural growth and thereby tackle food security, poverty reduction and reduced vulnerability to climate change.

Key features of SAGCOT include:

• SAGCOT Partnership established with members from government, global business, the Tanzanian private sector, farmers, foundations, and donor institutions.
• Executive Committee co-chaired by the Minister of Agriculture of Tanzania; and the Executive Vice President (North and Central Africa) of Unilever.
• SAGCOT Centre established a secretariat to advance the initiative.
• An Investment Blueprint outlines the initiative and opportunities.
• A Catalytic Fund will soon be in place as a formal secretariat to advance the initiative.
• An Investment Blueprint outlines the initiative and opportunities.
• A Catalytic Fund will soon be in place.

Investment Opportunities

The Investment Blueprint highlights 15 ‘early win’ investment opportunities where rapid progress could be made.

These include:

• Mbozi seed farm. A 3,000-hectare nucleus seed estate plus irrigated out-grower scheme for maize, soya, sunflower, sesame, and pulses.
• Ruvu cattle ranch. Redevelopment of a 40,000-hectare government-owned ranch, with the introduction of fattening and slaughter facilities for local breeders.
• Smallholder Commercialization and agro-dealer program. Providing extension services, inputs, weather insurance and market access to large numbers of smallholder farmers.
• Sao Hill agri-centre.Irrigated vegetable production linked to an agriculture processing center (including a biomass plant) with storage and processing facilities.

Additionally, SAGCOT has prepared concrete opportunities for promotion to investors:

• Sugar:

Opportunity to develop modern sugar operations drawing on Tanzania’s natural advantages for sugarcane cultivation, and supply the large domestic and regional sugar markets.

• Rice:

Opportunity to take advantage of the growing gap in rice supply by investing in rice production to serve the rapidly growing market in Tanzania and the region.

• Livestock:

Opportunities to benefit from exponential growth in demand for livestock products across the region.

• Horticulture:

Opportunities to establish modern vegetables, fruits, flowers, spices and horticultural seed business operations for domestic, regional and international markets.