Tanzania activates three new agricultural corridors in biggest reform drive since Davos 2010

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Tanzania has completed the first phase of a nationwide policy sensitisation exercise to formally activate three new agricultural growth corridors — Northern, Central and Mtwara — marking the country’s most significant expansion of its agricultural transformation agenda since the launch of the Southern Agricultural Growth Corridor of Tanzania in 2010.

The rollout transitions the Agricultural Growth Corridors of Tanzania (AGCOT) framework — Flagship No. 7 of the Agriculture Master Plan (AMP) 2050 — from planning into full national operations. Coordinated by the Agriculture Transformation Office (ATO) in collaboration with the AGCOT Centre, the initiative spans 17 regions and lays the groundwork for building a $100 billion agricultural economy by 2050 under the National Development Vision 2050 (Dira 2050).

Consultations held from February 10 to 24, 2026, in Arusha, Singida, Mwanza and Mtwara brought together regional leaders and sector stakeholders, with further engagement in Kigoma scheduled before March 10.

“These consultations are not simply policy announcements; they represent the beginning of a generational shift,” said Geoffrey Kirenga, CEO of AGCOT Centre. “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.”

Building on a proven model

The national expansion follows a directive issued by President Samia Suluhu Hassan on March 17, 2023, during the Africa Food Systems Platform at State House, instructing authorities to replicate the SAGCOT model nationwide. The original corridor was simultaneously launched in Dar es Salaam and at the World Economic Forum in Davos in 2010 under the Kilimo Kwanza initiative.

Between 2010 and 2024, SAGCOT mobilised $6.34 billion in cumulative public and private investment — 111% of its target achieved five years early. Of that total, $5.02 billion (79.2%) came from the public sector for backbone infrastructure such as energy, roads and rural electrification, while $1.32 billion (20.8%) came from private investors for agribusiness, processing and value-chain development.

Over the period, more than one million smallholder farmers were empowered, 1.3 million hectares placed under climate-smart agriculture, and more than 253,000 jobs created. The corridor currently accounts for 65% of Tanzania’s national food production. SAGCOT formally transitioned to the nationally mandated AGCOT framework on April 27, 2025, in Dodoma.

Corridor priorities

The Northern Corridor — covering Arusha, Kilimanjaro, Tanga and Manyara — is positioned as Tanzania’s gateway for high-value horticultural exports and East African Community trade. Priorities include strengthening cold-chain infrastructure and export-ready aggregation systems that meet international phytosanitary standards, alongside commercialising livestock value chains such as beef, poultry and aquaculture. The corridor will apply the Inclusive Green Growth (IGG) tool to ensure environmental and social governance compliance.

“The agriculture sector has been identified as the transformative sector in the National Development Vision 2050 due to its significant contribution to employment, GDP, and foreign exchange earnings,” said Hon. Batilda Buriani, Regional Commissioner for Tanga.

The Central Corridor, spanning ten regions from Dodoma to the Lake Zone, was divided into two consultation clusters. In Singida, discussions focused on the sunflower value chain to reduce edible oil imports. Tanzania imports more than half of its 500,000 metric tons annual edible oil requirement, while Dodoma and Singida account for 53% of national sunflower production. The target is to increase sunflower output from 204,000 to 420,000 metric tons within four years through contract farming and digital systems.

In Mwanza, stakeholders examined a $200 million livestock opportunity anchored on the proposed “Great Lakes Livestock Hub.” Mwanza alone hosts 1.97 million cattle. Plans include modern feedlots and slaughterhouses within the Mwanza Special Agro-Processing Zone, creating a circular economy linking sunflower by-products to livestock fattening. The Lake Zone also produces 30% of Tanzania’s rice and has significant potential in aquaculture, pulses, horticulture and spices.

“This is serious work. It is government work. Each one of us must closely follow the blueprints, work collaboratively, and ensure tangible results are delivered. There is no room for guesswork. Progress will be measured through data,” said Hon. Halima Omari Ndendego, Regional Commissioner for Singida.

The Mtwara Corridor — covering Lindi, Ruvuma and Mtwara — signalled a strategic diversification beyond cashew. The Tanzania Sustainable Soybean Initiative (TSSI), managed by AGCOT, targets more than 150,000 smallholder farmers and 250,000 metric tons of soybeans annually. Ruvuma has already diversified into 900 hectares of avocados, while potato farming is outperforming traditional zones. The corridor will also scale domestic cashew and sesame processing.

“These regions have major strategic opportunities for implementing agricultural value chains due to existing resources and priority crops — cashew nuts, sesame, pigeon peas in Lindi and Mtwara; maize, beans, coffee, soybeans, and tobacco predominantly produced in Ruvuma,” said Hon. Zainab Rajab, Regional Commissioner for Lindi.

Financing the transformation

The AMP 2050 envisions the private sector contributing 70% of required investment through blended finance mechanisms.

The Tanzania Agricultural Development Bank (TADB) has disbursed more than $203 million in cumulative loans, reflecting a 58% portfolio increase. The bank is backed by a $66 million sovereign loan from the African Development Bank and an $81 million credit line from the French Development Agency (AFD), and aims to allocate 20% of lending to women and youth.

The Cooperative Bank of Tanzania (CBT), launched on April 28, 2025, with TZS 55 billion in starting capital and 51% cooperative ownership, serves over 6,500 registered cooperatives with combined assets exceeding TZS 5.1 trillion.

“The importance of government partnering with the private sector in boosting production, increasing employment, and improving livelihoods cannot be overstated. We must create an enabling investment environment across all policy and operational systems,” said Hon. Said Mohamed Mtanda, Regional Commissioner for Mwanza.

Targets and next steps

The nationwide rollout seeks to quintuple agricultural GDP to $100 billion, raise net agricultural exports to $20 billion, achieve annual sector growth of 10%, increase smallholder incomes by at least 25%, reduce undernourishment to 15%, and raise private investment to 70% of total financing. Tanzania’s agricultural export value currently stands at $3.54 billion (2023/24 baseline).

Inclusive Green Growth principles will drive climate-smart practices, including agricultural lime use, water-saving technologies and drip irrigation, which analysis shows could deliver 8% more production while using 14% less water by 2030 — critical for semi-arid regions.

“With the sub-national architecture now falling into place and corridor Blueprints nearing completion, AGCOT Centre and its key partners in the Government and the private sector are set to deploy agile teams across these newly activated corridors,” Kirenga said. “Tanzania is building the institutional foundations for a transformation that will quintuple our agricultural GDP, reshape our entire agricultural sector, crops, livestock, and fisheries, and ensure the benefits reach every Tanzanian, especially women and youth. Every stakeholder identified in this plan is called upon to play their part.”

Corridor Blueprints and Greenprints are expected to be finalised by the end of March 2026, signalling the transition from sensitisation to full-scale implementation.

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