The Southern Agricultural Growth Corridor of Tanzania (SAGCOT) is a public private partnership designed to stimulate responsible and sustainable commercial agricultural development in southern Tanzania ensuring clear benefits for smallholders and their communities. This brings together commercial and public sector actors, as well as local and international organizations working with agricultural value chains. With an extensive mix of diverse institutions, each with their own objectives, an agreed code of conduct is required.
The SAGCOT Partnership Principles establishes a framework for expected Partnership behavior, including: what is expected from each partner and what they can expect from each other. Organizations that wish to become members of the SAGCOT partnership will be required to agree with these principles.

SAGCOT Partnership - Objectives and Structure

The SAGCOT Partnership’s objective is to establish and sustain a new phase of profitable agricultural growth in Tanzania. The partnership will (a) provide a non-aligned framework for dialogue and cooperation, (b) establish coordinated investments, and (c) improve productivity, incomes, employment, food security and nutrition. The partnership will facilitate the establishment of a critical mass of commercial agriculture in targeted, high potential areas. The partnership will work to encourage and guide public and private sector support and investment in these areas, and in a wider set of improvements in value chain operations and the business environment throughout the corridor. 
The SAGCOT partnership has been created to overcome the bias of short-term interests through helping partners work together for the long-term benefit of agricultural development in Tanzania. Farmers, agri-business, local and national government, Academia, CSOs, commercial banks and development partners are working together in ways they have never done so before to establish a critical mass of effective agricultural value chain operators. By improving communications and trust, and by strengthening linkages, the members will develop shared objectives and collaborate in planning and implementing a new type of agricultural development. Implementation will be supported by innovative coordinated finance, targeted infrastructure development, technical guidance, training and capacity building, and a partnership structure coordinated by the independent SAGCOT Centre Ltd, which houses the SAGCOT Secretariat. 
The notion of ‘partnership’ is a general concept enveloping the overall SAGCOT approach. The work of coordinating and facilitating the partnership support and development activities falls entirely to the SAGCOT Centre Ltd.
The core constituents of SAGCOT Centre Ltd are (i) its Board of Directors; (ii) The AGM and (iii) the full-time SAGCOT Centre as the Secretariat to the SAGCOT Initiative. The Board of The SAGCOT Centre Ltd. is appointed by the Subscribers to the SAGCOT Centre and comprises of seven members; four of which  have local experience and two who have international experience and one from a public sector institution.

The SAGCOT Partnership Membership

The Partnership shall be open to a wide group of members with an interest in the development of the Southern Agricultural Growth Corridor of Tanzania. Any organization wishing to become a member to the Partnership shall apply to the SAGCOT Centre Ltd, and will be admitted by the partnership evaluation committee as a member to the Partnership. The members will include:

  • Central and local Tanzanian government agencies
  • Local private sector actors including national and district-based farmers’ organizations, input and output trading companies and stockists, Producers and Procesors, finance institutions, agricultural and related projects and programs, and private sector service
  • International private sector companies
  • Civil Society actors
  • Development Partners

Upon admission, every member to the Centre will be bound by these Partnership Principles.


The SAGCOT Centre’s functions

In order to appreciate properly the context of the SAGCOT Partnership Principles, it is important that prospective members understand the work of the SAGCOT Centre, the institution that will uphold the Principles of the Partnership. The SAGCOT Centre is the Secretariat to the SAGCOT Initiative; and will coordinate activities and investments that support large-scale, emergent and small-scale farmers, and agri-business in targeted high potential areas in the corridor (called “Clusters”). All activities and investments will be designed to be socially and environmentally responsible (please visit )

Specific SAGCOT Centre (SCL) functions are to:

Promote the Partnership

To support and uphold the Partnership Principles and help each member understand what is expected of them, and what their roles and responsibilities are within the SAGCOT framework.

Act as an honest broker between various parties

SCL was designed to be a partner identifier and convener, under the premise that while many organizations are already engaging in the agriculture sector, they could benefit from the added coordination to concentrate, streamline, and amplify their efforts to create synergy and larger impact

Monitor and Evaluate the Partnership’s impact

Although each member will be responsible for monitoring their own development within the corridor, the SAGCOT Centre will track overall progress. This will include the number, volume and impact of investments and the growth and profitability of large, small and medium-scale commercial agriculture in the corridor. Environmental and social impact, poverty reduction and the role of women and youth are also to be assessed (See IGG Tool )

Coordinate corridor-related activities

By providing a professionally credible focal point to help partners plan, implement and review their own activities and link them to a wider set of ongoing and planned SAGCOT-related activities.

Support Agro-industrial investment

SCL was designed to support industrial investment in the agriculture sector, working with current and potential investors – including farmers and SMEs – to identify and realize investment opportunities.

Support farmers through other organizations

Through its value chain partners, SCL was designed to empower and strengthen small-scale farmers towards enabling farming as a business and integrated with farmer production systems for markets and value chain development.

Help promote a stronger enabling environment for actors in the sector

SCL was designed to interface with policy-makers to enhance visibility into actor needs and help identify priority policy areas for the advancement of the sector.

Partner Evaluation Committee

The SAGCOT Partner Evaluation Committee (Evaluation Committee) was established in June 2014 to formalize the on-boarding process of potential partners and ensure they are a perfect fit with the SAGCOT Partnership and its objectives. Prior to this, partner registration was approved by the Senior Management Team (as of 2013) and by the Board and Kilimo Kwanza executive committee (2011-2012). It was realized that there was limited engagement of evaluators who have experience in investment facilitation, private sector engagement and enabling environment challenges. Therefore, it was recommended that SCL should have external evaluators in the committee. Since 2017 the Partner evaluation committee has a responsibility to recruit potential partners, monitor progress of the partnership and exit partners who do not adhere to the partnership principles as stipulated in this document. In addition, the committee approves annual recruitment strategy of partners, based on the partnership needs. SCL acts as a secretariat to this committee, in addition to having the role of presenting potential partners to the committee. Members of the SAGCOT Partnership will also be expected to act as ambassadors for the overall SAGCOT Partnership and its objectives, to provide support for other members as appropriate, and to suggest additional competent members to the SAGCOT Partnership whenever possible.

The Partnership Principles

Each SAGCOT Partnership member will be required to abide by the Partnership Principles:

Agreement on the overall SAGCOT Objectives

sharing the SAGCOT objectives for responsible commercial growth and food and nutrition security. This includes the need for commercially viableagricultural businesses to incorporate emergent and small-scale farmers and their interests into their operations.

Agreement to engage with the partnership, maintain communication and support the SAGCOT Centre

To support the SAGCOT Centre in its work. Until such time as the benefits become evident, the underlying trust and intrinsic goodwill of each member will be essential to maintain progress.

Agreement to consider new and innovative financing mechanisms

which are aimed at catalyzing additional private investment in SAGCOT in ways that ensure major benefits also accrue to smallholder farmers. This will require creative investment, and the willingness of farmers and agri- business to accept new types of risk and modifications to traditional practices.

Agreement to work with other members to promote a harmonized approach and strategy

so that within their own particular sphere of activities, each member will cooperate with the overall, coordinated SAGCOT programme of planning, investment, implementation and policy

Agreement to contribute to the resolution of policy and infrastructure constraints

by bringing to the attention of the SAGCOT Centre their own concerns about specific factors that currently hinder local and national development of commercial agriculture. Members at all levels must be prepared and able to contribute to identifying and the resolution of these impediments, each according to their role and

Agreement to adhere to the Inclusive Green Growth principles

(to get the guiding tools, please visit )

The SAGCOT Partnership meetings

Partners will be invited and are required to sign up and become members of Strategic Value Chain or Thematic partnerships (themes such as Soil Health, Finance, Green Growth). These are high impact strategic partnerships within the larger SAGCOT partnership within which actors along value chains will share information, value chain-specific concerns, lessons and opportunities, and where each member provides critical feedback to the SAGCOT Centre. Members sign up to an agreed terms of reference (TOR); plan together annually on issues to tackle together, and agree to review their plan regularly. Strategic partnerships are convened at Cluster Level; however, specific policy and regulatory issues emanating from here are escalated to key government stakeholders/institutions (plus other appropriate channels) concerning the business environment and constraints to commercial investment in the value chain of concern, and seek to identify ways in which these challenges will be addressed.  Other issues and progress are tabled at the annual Cluster Review Meetings where all priority value chain progress and issues of concern are tabled to a wider  audience of public and private partnership by signing and annually reviewing the Cluster COMPACT. All strategic partnership members are required to be signatories to the Cluster COMPACT.

Partner expectations from the SAGCOT Centre

Members who subscribe to the Partnership Principles and pay the partnership fees ( see Section 9) will have full access to information, networking, professional services and other opportunities as can be provided or brokered by the SAGCOT Centre. Specific benefits to members of the SAGCOT Partnership will include:

Farmers and Farmer Organizations

  • Improved linkages with commercial agribusiness
  • Access to information on current best agricultural practices to increase productivity and competitiveness, and contacts for specialist support if needed
  • Connections to improved marketing systems and finance
  • Opportunities to link with other farmers – both small-scale and large-scale

Private Sector Financial Institutions and Development Funds

  • Introductions to areas where a critical mass of commercial agriculture is being developed
  • Identification of commercial opportunities and potential clients interested in short and longer- term finance
  • Guidance to areas where complementary finance – such as matching grants or other instruments – are required
  • Lower transaction costs due to available background information and analysis

Donor Partners

  • Identification of target areas and activities for coordinated programs to enhance private sector development that supports linkages to smallholders
  • Access to analysis and feedback on priority policy, regulatory, fiscal and legislative constraints currently hindering agricultural profitability and further private investment
  • Identification of effective entry points for improved environmental management, responses to climate change and support to women, youth and the disadvantaged in

Local and International Agribusiness

  • Facilitating access to relevant finance
  • Coordination of infrastructure development to support commercial investments
  • Access to an enlarged potential client-base
  • Support for an improved business environment for agriculture
  • Access to analysis of value chain issues
  • Linkages to complementary companies and new opportunities for risk sharing partnerships

Local and national Government

  • Identification of focal points for prioritized and targeted public investment to enhance commercial agriculture
  • Identification of priority infrastructure needs
  • Access to analysis and feedback on priority policy, regulatory, fiscal and legislative constraints currently hindering agricultural profitability and further private investment
  • Feedback of practical suggestions on how to improve the business environment for agricultural growth

Civil Society/NGOs

  • Identification of entry points to enable provision of their specific services and support where complementary activities are already underway
  • Participation in key discussions on key policy and regulatory issues
  • Opportunities to link with and add value to commercially driven agri-business activities in the clusters

Complaints and Disputes

If partnership members have substantial concerns or complaints about the Centre’s actions or the way in which it is operating, they can formally register them in writing to the Chairman of the Board of the SAGCOT Centre Ltd. These will then be discussed at the next Board Meeting for any appropriate action. Alternatively, Partners can register their grievances via

Partnership and Fees

Membership to the SAGCOT Partnership, which will be gained through an application to the SAGCOT Centre, will be subject to payment of an annual partnership fee according to the potential member’s institutional status. Membership, which is subject to approval by the Partner Evaluation Committee, will provide participation to the SAGCOT Partnership meetings and access to the Partnership activities such as taskforces, information sharing, and meetings.
The purpose of the partnership fee is to ensure only serious, committed organizations join the partnership through the Centre. The fees will be paid into the SAGCOT Centre Ltd and used for specific operations such as the SAGCOT Partnership activities.
The following partnership fee scales will be applied:

Organization Type

Annual Fee

Large Companies (Global Turnover > USD 5 million)

TZS 4,000,000

Medium Companies (USD 1 million<Global Turnover < USD 5 million)

TZS 1,000,000

Small Companies (Global Turnover < USD 1 million), Development Partners, Research Organizations, CSOs

and Government Agencies or Institutions

TZS 250,000

Apex or Farmer Organization

TZS 50,000

Development partners, along with Government Ministries, and Knowledge and Academia Partners will also be members of the partnership, however given their significant contributions to the funding of the SAGCOT Centre and/or within the corridor itself they will not be expected to pay the membership fee. All fees are renewed annually from 1st January. Non-payment of fees within three years consecutively will result in membership being first suspended and then withdrawn completely.

Public Relations

  • All member organizations agree that their membership of the SAGCOT Partnership can be advertised by the SAGCOT Centre in relevant communications including the SAGCOT Centre’s website.
  • The SAGCOT Centre will not provide contact details to third parties without member’s prior
  • No member shall claim to represent the SAGCOT Partnership without the express agreement of the SAGCOT Centre

Social & Ethical Obligations

  • Members must never intentionally injure, directly or indirectly the professional reputation, prospects or business of the SAGCOT

Failure to comply with these Principles of Membership

  • Any breach of these Principles should be brought to the attention of the SAGCOT Centre CEO
  • The SAGCOT Partnership, through the SAGCOT Centre, retains the option to withdraw membership for serious breaches of these Principles without any refund of partnership fees paid based on majority agreement of Partner Evaluation Committee members.
  • Failure to pay annual partnership fees is construed as a breach of the SACGOT Partnership principles and will trigger a review of the partnership/relationship by the evaluation committee to assess whether or not to suspend investment facilitation support to the partner until annual partnership fee payment.