Norway commits US$15M to boost Tanzania’s agricultural sector through strategic partnerships

TANZANIA – The government of Norway has pledged US$15 million to support Tanzania’s agricultural sector. 

This commitment follows the signing of a Memorandum of Understanding (MoU) between the Royal Norwegian Embassy (RNE), the Agriculture Transformation Office (ATO), and the Alliance for a Green Revolution in Africa (AGRA), aimed at fostering strategic partnerships to enhance agricultural development in Tanzania.

The MoU is set to bolster the implementation of Flagship 7, the Agricultural Masters Plan, which aims to replicate the Southern Agricultural Growth Corridor of Tanzania (SAGCOT) model across three additional Agricultural Growth Corridors: Mtwara, Central, and Northern Corridors. 

By expanding the SAGCOT model, the initiative seeks to create an enabling environment for sustainable agricultural transformation in the country.

Strategic expansion of agricultural growth corridors

The funding from Norway will empower the SAGCOT Centre, the institution tasked by President Samia Suluhu Hassan to lead the replication of the SAGCOT model, to deepen its interventions within the SAGCOT Corridor. 

It will also support the advancement of the Agricultural Growth Corridors of Tanzania (AGCOT) initiative.

During the signing ceremony, Deputy Minister of Agriculture David Silinde praised the collaboration, highlighting Tanzania’s achievement of 128% food self-sufficiency in the 2023–2024 fiscal year. 

He noted that while this milestone reflects the sector’s progress, further efforts are needed to strengthen agricultural productivity and sustainability.

“The government of Tanzania is committed to transforming agriculture to ensure food security, reduce poverty, and drive economic growth,” said Silinde. 

“With Norway’s support, these projects will play a key role in achieving our goals.”

Unveiling new initiatives for sustainable growth

The newly launched initiatives aim to address regulatory barriers, attract private investment, and scale up the AGCOT model. 

This strategic approach aligns with President Samia Suluhu Hassan’s directive to expand the SAGCOT model nationwide, emphasizing food security, poverty reduction, and inclusive growth.

The SAGCOT model, launched at the World Economic Forum – Africa in 2010, is a partnership program between the Tanzanian government and the private sector. 

It seeks to enhance agricultural productivity, strengthen food security, reduce poverty, and promote sustainable environmental conservation through commercial formalization for smallholder farmers. 

The model’s vision is to transform Tanzania’s agriculture sector into an inclusive industry that supports small and medium-sized enterprises.

“Together, we’re unlocking agriculture’s potential to create jobs and uplift communities,” Norwegian Ambassador to Tanzania, Tone Tinnes, reiterated Norway’s commitment to supporting Tanzania’s agricultural sector.

Geoffrey Kirenga, Chief Executive Officer of the SAGCOT Centre, highlighted Tanzania’s strategic geographical position, noting that it has the potential to become a gateway into Africa and a hub for dynamic economic growth.

Tanzania’s agricultural sector: Progress and challenges

Agriculture plays a vital role in Tanzania’s economy, accounting for 23% of the GDP and employing about 65% of the workforce. 

Approximately 80% of Tanzania’s exports come from agriculture, with key cash crops including coffee, cotton, sisal, tea, cashew nuts, tobacco, pyrethrum, and cloves. 

According to the country’s central bank, these commodities generated over US$752.3 million in the 2022/2023 financial year.

Tanzania’s agricultural sector has shown steady progress, with the country achieving 128% food security and exporting surplus produce to neighboring countries. 

President Samia Suluhu Hassan recently emphasized the government’s focus on improving food quality, accessibility, affordability, and reducing post-harvest losses.

Regional impact and future prospects

Tanzania’s progress in agriculture has drawn regional attention. 

During the World Food Prize Norman E. Borlaug International Dialogue in Iowa, President Suluhu Hassan shared Tanzania’s achievements alongside Sierra Leone’s President Julius Maada Bio, highlighting the potential of agricultural transformation to address food shortages across Africa.

African Development Bank Group (AfDB) President Dr. Akinwumi Adesina commended Tanzania’s efforts while noting the commitments made at the 2023 Dakar 2 Food Summit, where 34 African heads of state and government pledged to enhance agricultural development.