Welcome to the Tanzania Agricultural Catalytic Trust (TACT)

The Tanzania Agricultural Catalytic Trust (TACT) initiative is a long term public private partnership designed to stimulate responsible and sustainable (green growth) transformation and commercialization of agriculture in the Tanzania ensuring clear and direct benefits to smallholder farmers, livestock keepers and fishermen. The Tanzania Agricultural Catalytic Trust (TACT) has been established as a Public-Private Partnership to provide the financing mechanism to link smallholders to agricultural value chains. TACT has received funding from the government  of Tanzania,  and intends to use this fund for social venture capital, matching grand, patient capital and long term loans which is designed to stimulate, strengthen and scale-out business linkages between smallholder farmers and agribusinesses operating in the Tanzania.

TACT Background

The Kilimo Kwanza Growth Corridors, an international public-private partnership was launched at the World Economic Forum Africa, in May 2010, in Dar es Salaam, Tanzania. It was mandated to mobilise and catalyse private sector investments and partnerships to deliver rapid and sustainable agricultural growth in Tanzania. Kilimo Kwanza ultimately resulted in the creation of the SAGCOT Investment Program, the SAGCOT Investment Blue Print, the SAGCOT Centre Limited and the SAGCOT Catalytic Trust Fund. After the successful execution of the pilot phase of the Trust within the SAGCOT region, a nationwide Program is to be rolled-out in line with the Agricultural Sector Development Policy and the SAGCOT Investment Blueprint. The Trust has changed its name to TANZANIA AGRICULTURAL CATALYTIC TRUST (TACT). The Trust is a centrepiece of the nation’s ASDPII strategy for pursuing food security, poverty reduction and reduced vulnerability to climate change with its members drawn from the government, global business, the Tanzanian private sector, farmers, foundations and donor institutions.

Change of the Name and Scope From SAGCOT Catalytic Trust Fund (SAGCOT AREA) To Tanzania Agricultural Catalytic Trust (National Wide)

The Southern Agricultural Growth Corridor of Tanzania (hereinafter referred to as the “SAGCOT”) Catalytic Trust Fund (CTF) was incorporated on 30th May, 2011 under the Trustees Incorporation Act (Cap. 318 R.E 2002) to provide social venture capital to address the initial costs of developing and starting up commercially viable agricultural businesses in the SAGCOT that incorporates smallholder farmers to be channeled through various forms.

SAGCOT CTF is a centerpiece of the nation’s Agricultural Sector Development Programme Phase II (ASDP II) for pursuing food security, poverty reduction and reduced vulnerability to climate change with its members drawn from the government, global business, the Tanzanian private sector, farmers, foundations and donor institutions. Following the successful execution of the pilot phase of the CTF within the SAGCOT region, there was a need to roll out a nationwide Program in line with the Agricultural Sector Development Policy (ASDP) and the SAGCOT Investment Blueprint.

In view of the above development, the SAGCOT CTF has thus changed its current name to TANZANIA AGRICULTURAL CATALYTIC TRUST (TACT). The changes among other things intends to make SAGCOT CTF to operate countrywide as opposed to serve a single corridor, to keep updated the respective substantial achievements that have been made from the lessons learnt in their implementation. Further the changes made has considered those prominent areas which are instrumental in supporting Government Policy for agricultural investments

TACT Vision
To become a leading agricultural Trust Fund capable of catalyzing and sustaining local content in agribusiness investments

TACT Mission
To strategically finance and empower small holder farmers to actively, commercially and profitably participate in all stages of the agribusiness value chain through investments that creates access to markets for smallholder farmers produce

Why TACT?

  • In some places in Tanzania, demand lacks and smallholder farmers struggle to find reliable and profitable markets for their produce
  • At large the supply side is weak and smallholder farmers cannot meet the market requirements
  • In most cases the cost of doing Business prevents business linkages between the market and smallholder farmers from happening

What is Tanzania Agricultural Catalytic Trust?

The TACT 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 TACT Investment Blueprint, the Government of Tanzania seeks to attract US$2.1 billion of new agribusiness investment over the next 20 years to bring at least 350,000 additional hectares into commercial production incorporating Tanzanian smallholders into internationally competitive supply chains. The TACT Program aims to create at least 420,000 new jobs and lift more than 2 million people out of poverty.

The Tanzania Agricultural Catalytic Trust (TACT) is an innovative financing mechanism for the TACT 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.

TACT Target

TACT 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.