Tanzania and Agricultural Investment
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.
Tanzania has vast natural resources that provide a base from which significant agricultural growth in crops, livestock and fisheries is possible. A combination of factors make it attractive for commercial investment, including:
- Shared borders with eight countries in the East Africa region, providing a large and growing regional market.
- Coastal location with an international port providing potentially low-cost access to rapidly expanding markets in the Middle East and Asia.
- Significant natural resources including good soils, under-developed land, and water resources suitable for agriculture.
The government’s Agriculture Sector Development Strategy has made the sector a national priority, committing to major improvements in public investment, policy, and infrastructure.
Southern Agricultural Growth Corridor of Tanzania
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 catalysing 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 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 outgrower 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 commercialisation and agro-dealer programme. 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 centre (including a biomass plant) with storage and processing facilities.
- 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. Download detailed sugar investor presentation.
- 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. Download detailed rice investor presentation.
- Livestock: Opportunities to benefit from exponential growth in demand for livestock products across the region. Download detailed livestock investor presentation.
Further Information
Contact: Jennifer Baarn, Deputy CEO, SAGCOT Centre, +255 786 839665, jennifer.baarn@sagcot.com
Website: http://www.sagcot.com
Resources: