Agricultural clusters require simultaneous and properly coordinated investment by the public and private sectors. The Southern Agricultural Growth Corridor of Tanzania (SAGCOT) is another public-private partnership which aims to boost agricultural productivity in Tanzania and the wider region. SAGCOT will promote clusters of profitable agricultural farming and services businesses, with major benefits for smallholder farmers and local communities.

SAGCOT’s main objective is to make smallholder farming a profitable activity by incentivizing stronger links between smallholders and agribusinesses via:

  • “Hub and outgrower” models
  • Linking farmers’ associations to markets
  • Irrigated farm blocks with professional management

SAGCOT is being implemented by a group of private sector agribusiness companies, both local and international, in partnership with the Government of the Republic of Tanzania and donor organizations. The concept and investment strategy were developed by a working group within the Agricultural Council of Tanzania (ACT), with assistance from AgDevCo and Prorustica.