SAGCOT clusters are defined as geographic concentrations of interconnected companies, specialized suppliers, service providers and associated institutions.
Agribusiness-focused Clusters are areas of high concentration of actors (in specific locations of the country) active in production, processing, marketing,supply of inputs and services as well as supporting institutions;connecting investments to benefit smallholders, and medium to large scale farmers. Due to economies of scale, farmers, agribusinesses and service providers are working successfully through value chains and thematic strategies to unlock the potential within these thematic strategic partnerships.
Within the Corridor, six Agribusiness-focused Clusters were identified: Rufiji , Kilombero, Ihemi, Mbarali, Ludewa and Sumbawanga. Ihemi Cluster was the first to be established and more recently the Mbarali Cluster. The rest are to be developed in a phased approach in order to obtain impact and lessons that can be rolled out to other Clusters.The SAGCOT Centre’s role in the clusters revolves around brokering relationships within the SAGCOT Strategic Partnerships active in the Clusters . SAGCOT Centre therefore facilitates partners to deliver on inclusive, sustainable and commercially viable agricultural value chains in the cluster.
The development of the Clusters is central to the success of SAGCOT. In clusters, actors get access to services and advantages that they would never have managed to get if they would have worked isolated in a specific area or without collaborating with others (in strategic partnerships). This shows that the strength of the clusters comes more from the level of collaboration than from the initial « natural potential » of an area.
The broad roles and functions broken down among the different partners in the SAGCOT Public-Private Partnership can be summarised as follows:
Private Companies: Establishing of businesses, products or services produced within the cluster and the impact made (amount invested, farmers reached, jobs created, volumes sold, new technologies used,capacity of farms or factories and land acquired (ha) including green growth.)
Government (LGA and Central Government)– Improving the business environment including policy constraints worked on and infrastructure projects, ensuring compliance- including compliance to green growth principles.
Non State Actors– What they do to support the SAGCOT agenda: Project Implementation, advocacy including green growth (social, economic and environmental issues) addressed.
SAGCOT Centre Ltd (Brokers)-facilitating investments and coordinating stakeholders in the cluster and catalyzing relationships and business linkages, encouraging networking among partners.
Farmers Organizations-The best risk takers in farming. The producers who feed all other partners. They are the focus of the SAGCOT Initiative who require support to bring about widespread agricultural transformation in the country. (emerging Farmers) regarding their responses and reactions to the efforts of LGA, Non-State Actors and Private Companies
Development Partners and GoT – Financing support for the transformation envisioned, supporting research and new Innovations, capacity development of actors including green growth.