Tanzania activates 3 new agricultural corridors in largest transformation since Davos 2010

The rollout builds on the Southern Agricultural Growth Corridor of Tanzania (Sagcot), which mobilised $6.34 billion in investment between 2010 and 2024, benefiting over one million smallholder farmers, putting 1.3 million hectares under climate-smart agriculture, and creating more than 253,000 jobs.

Of the funds mobilised, $5.02 billion (79.2 percent) came from the public sector for infrastructure, energy, roads and rural electrification, while $1.32 billion (20.8 percent) from the private sector supported agribusiness, processing and value chains. Sagcot officially transitioned to Agcot on April 27, 2025.

Consultations were held from February 10 to 24, 2026, in Arusha, Singida, Mwanza, and Mtwara, transitioning Flagship No. 7 of the national Agriculture Master Plan 2050 from planning into full national operations.

The initiative is led by ATO, the Agcot Centre, the President’s Office – Regional Administration and Local Government (PO-RALG), the Ministry of Agriculture, and the Ministry of Livestock and Fisheries.

“These consultations are not simply policy announcements; they represent the beginning of a generational shift. By unifying the Northern, Central, and Mtwara corridors under a single national framework, Tanzania is moving from fragmented interventions to an integrated transformation strategy. The goal is clear: build a $100 billion agricultural economy that positions Tanzania as Africa’s breadbasket,” said Geoffrey Kirenga, CEO of Agcot Centre.

Northern Corridor: High-value exports and cross-border trade

The Arusha consultation consolidated the strategic roadmap for Tanzania’s gateway for horticultural exports and East African Community (EAC) trade.

Priorities include strengthening horticultural value chains, cold chain infrastructure, and export-ready aggregation systems.

Special investments will also boost commercialisation of the livestock sector, including beef, poultry, and aquaculture, with Inclusive Green Growth (IGG) tools ensuring environmental, social, and economic governance compliance.

“The agriculture sector has been identified as transformative under Vision 2050 due to its contribution to employment, GDP, and foreign exchange,” said Hon. Batilda Buriani, Regional Commissioner of Tanga.

Central Corridor: Sunflower revolution and the Great Lakes Livestock Hub

The Central Corridor, the largest geographically, spans ten regions from Dodoma to the Lake Zone. Consultations in Singida focused on the sunflower value chain, edible oil import substitution, and drought-tolerant crops.

Dodoma and Singida produce over 53 percent of national sunflower output, with production projected to rise from 204,000 to 420,000 metric tons within four years through contract farming and digital information systems.

Mwanza consultations addressed a $200 million livestock development opportunity, including the establishment of the Great Lakes Livestock Hub with modern feedlots and slaughterhouses in the Mwanza Special Agro-Processing Zone (SAPZ). Aquaculture and fisheries also present significant investment potential.

The region accounts for about 30 percent of Tanzania’s rice and has ideal conditions for pulses, fruits, vegetables, and spices.

“This is serious work. Each of us must follow the blueprints, work collaboratively, and ensure tangible results,” said Hon. Halima Omari Ndendego, Regional Commissioner of Singida.

Mtwara Corridor: Diversification beyond cashew

Mtwara is prioritising crop diversification. The Tanzania Sustainable Soybean Initiative (TSSI) targets 150,000 smallholder farmers, producing 250,000 metric tons of soybeans annually. Ruvuma is cultivating 900 hectares of avocado and expanding potato farming.

The corridor also emphasises local cashew and sesame processing.

“These regions have major opportunities in priority crops: cashew, sesame, pigeon peas, maize, beans, coffee, soybeans, and tobacco,” said Hon. Zainab Rajab, Regional Commissioner of Lindi.

Financial architecture and blended finance

The AMP 2050 targets 70 percent private sector contribution. The Tanzania Agricultural Development Bank (TADB) has disbursed over $203 million in cumulative loans, backed by $66 million from the African Development Bank and $81 million from the French Development Agency (AFD), targeting 20 percent of lending to women and youth.

The Cooperative Bank of Tanzania (CBT), launched in April 2025, serves over 6,500 cooperatives with combined assets exceeding TZS 5.1 trillion.

“The government-private sector partnership is critical for production, employment, and livelihoods. We must create an enabling investment environment,” said Hon. Said Mohamed Mtanda, Regional Commissioner of Mwanza.

Inclusive growth, climate resilience and continental positioning

AGCOT’s “Inclusive Green Growth” principle invests in youth and women through the “Building a Better Tomorrow” initiative, targeting 10,000–50,000 young agri-entrepreneurs. Climate-smart practices such as agricultural lime, water-saving technologies, and sustainable land management are central. Drip irrigation could increase production by 8 percent while using 14 percent less water by 2030.

Tanzania’s corridors position the country as a key food supplier for Africa, aligning with AfCFTA and the African Food Systems Platform. In July 2025, Agra Malawi studied the corridor model for replication, highlighting Tanzania’s continental leadership in agricultural policy.

“With the sub-national architecture in place and corridor Blueprints nearing completion, Agcot and partners are ready to deploy teams to quintuple agricultural GDP, reshape crops, livestock, and fisheries, and ensure benefits reach women and youth,” said Geoffrey Kirenga.

The first phase of regional engagement is complete, with accelerated implementation, private sector mobilisation, and development partner alignment set to continue, and Blueprints and Greenprints expected by the end of March 2026.