SAGCOT CTF Overview
The SAGCOT Initiative is an international public-private partnership launched at the World Economic Forum on Africa in May 2010 in Dar es Salaam, Tanzania, and in Davos, Switzerland in January 2011, as a means to implement the country’s transformational agricultural vision, the Kilimo Kwanza. As outlined in the SAGCOT Investment Blueprint, the Government of Tanzania seeks to attract US$2.1 billion of new agribusiness investment over the next20 years to bring at least 350,000 additional hectares into commercial production incorporating Tanzanian smallholders into internationally competitive supply chains. The SAGCOT Program aims to create at least 420,000 new jobs and lift more than 2 million people out of poverty.
The SAGCOT Catalytic Trust Fund (CTF) is an innovative financing mechanism for the SAGCOT Initiative; created in response to the challenges of catalyzing private sector investment in commercially and financially viable agribusinesses with financial backing from the Government of Tanzania, Private Sector and Development Partners.
SAGCOT CTF targets smallholder linkages along the value chain and aims to provide bridge financing for commercially viable agricultural businesses that incorporate and support smallholder farmers. It combines high developmental impact with commercial viability in order to leverage investment in the agribusiness value chain.