SAGCOT CATALYTIC TRUST FUND
THE INNOVATIVE FINANCING WORKING GROUP
SAGCOT CTF is co-chairing the partnership for the Alternative Product Development Process (APDP), which aim at providing Financial Innovative Tools for Agriculture (FiT4AG) for the purpose of growing ad strengthening agricultural value chains in Tanzania. Other members of the partnership are the SAGCOT Centre Ltd, Agricultural Markets Development Trust (AMDT), Financial Sector Deepening Trust (FSDT) and Tanzania Agricultural Development Bank (TADB). The partnership is flexible and may be modified or amended whenever need rise in consent of the partners.
Objective of the Partnership
The partnership provides the framework for the Partners to achieve the following
- Act as a think tank for finance solutions in the agriculture sector by providing valuable analysis.
- Facilitate and institutionalize the development of an alternative process for the development of financial products and solutions for agricultural value chains in Tanzania.
- Build Capacity of financial service providers and agriculture sector stakeholders to;
- Consume research and assess opportunities
- Structure a transaction or product
- To bring a transaction or a product to the market
- Promote financial solutions and transactions for stakeholders in priority regions and clusters.
- Promote financial solutions and transactions for priority value chains.
Focused Agricultural Value Chains for Up-taking
The partnership selected four value chains, which have momentum to grow and to help transform the lives of Tanzanian farmers. The selected value chains are soya, potatoes, dairy, and sunflower. From these value chains, the partnership estimates financing opportunities worth shillings 541 billion Shillings for financial service providers to learn about, design products for, mobilize, and syndicate.
- Soya is in high demand in Tanzania while supply is limited. Overall demand is estimated at 33,000 tones with current production at 10,000 tones. National soya plan estimates demand to grow almost 300% by 2020 to 129,000 tones. Soya’s potential opportunity is shillings 14 billion.
Click here (Soya Validation Report)
- Potatoes represent a significant market in Tanzania produced by 426,000 farmers and is worth 1 trillion shillings overall. However, with the introduction of new variety of seeds, and the potential to store and process them, the market is expected to grow to 1.6 trillion. Potatoes potential opportunity is worth shillings 418 billion.
- Dairy sector has potential in Tanzania that has yet to fully take off in southern highlands. The airlift of calf Heifers and investments in reproductive technology to ensure continuity of breed along with other investments, the farmers can ensure high yields and a strong dairy sector can emerge. Dairy’s potential opportunity is worth shillings 110 billion.
- Sunflower oil accounts for about 15% of the total oil consumption in the country, a total sunflower oil production being estimated to about 169,000 tons. That corresponds to total sunflower grain production of about 560,000 tons (and sunflower cake production of 391,000 tons). Annual production of sunflower grains is estimated of about 1 million tons involving more than 500,000 smallholder farmers in the 19- high sunflower producing regions.