AGRF‟s focus is on projects that have taken a systemic (or value-chain) approach to agricultural economic development; projects that have involved partners from different industries within the private sector, as well as partners from the public and aid sectors. In this first issue of the AGRF Update we showcase a project that has worked, been further developed and brings together partners in a new innovative, systemic approach to mitigating the risk of investing in African agriculture.

AGRF is supporting the Southern Agricultural Growth Corridor of Tanzanian (SAGOT) - a public-private initiative to unlock Africa‟s huge agricultural potential. As Salum Shamte, Chairman of the Agricultural Council of Tanzania, says, “the agricultural potential of the Southern corridor is enormous but remains largely dormant or highly underexploited.”

Tanzania is only using one per cent of theoretically irrigable land. Businesses have traditionally not invested into African agriculture because of perceived challenges to doing business in a region without adequate infrastructure or regulatory certainty.. The first initiative - the Beira corridor in Mozambique - is helping farmers cultivate 190,000 hectares of newly-irrigated land, generating new revenues of more than US$1 billion.

Following the success in Mozambique, Tanzania‟s own SAGOT initiative was discussed at a meeting of the African World Economic Forum in Dar es Salaam in May 2010, where government and business leaders agreed to a joint initiative to develop an investment blueprint for the corridor by end of 2010.

SAGOT responds to a call for investment outlined in Tanzania‟s Kilimo Kwanza agricultural policy. Already the African Development Bank has donated US$230m to upgrade trunk roads, including one between Dodoma and Iringa. Fertilizer company Yara intends to invest US$20 million into a dedicated fertilizer terminal at the Dar es Salaam port.

In addition, helping smallholder farmers commercialize and gain access to international markets could create one million new jobs.

To receive a copy of the „concept note‟ on the SAGOT initiative, published in May, please see: www.africacorridors.com

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