partnership principles

1.     Introduction

The Agricultural Growth Corridors of Tanzania (AGCOT) is a public-private partnership designed to stimulate responsible and sustainable commercial agricultural development in Tanzania, ensuring that it works with inclusive agricultural value chains in a sustainable manner. With an extensive mix of diverse institutions, each with its  its own objectives, an agreed code of conduct is required.

The AGCOT Partnership Principles establish a framework for expected Partnership behaviour, including: what is expected from each partner and what they can expect from each other. Organizations that wish to become members of the AGCOT partnership will be required to agree to these principles

2.    AGCOT Partnership – Objectives and Structure

The AGCOT Partnership’s objective is to establish and sustain a new phase of profitable agricultural growth in Tanzania. The partnership will (a) provide a non-aligned framework for dialogue and cooperation, (b) establish coordinated investments, and (c) improve productivity, incomes, employment, food security and nutrition. The partnership will facilitate the establishment of a critical mass of commercial agriculture in targeted, high-potential areas. The partnership will work to encourage and guide public and private sector support and investment in these areas, and in a wider set of improvements in value chain operations and the business environment throughout the corridor.

The AGCOT partnership has been established to overcome the bias of short-term interests through helping partners work together for the long-term benefit of agricultural development in Tanzania. Farmers, agribusinesses, local and national governments, Academia, CSOs, commercial banks, and development partners are working together in ways they have never done before to establish a critical mass of effective agricultural value chain operators. By improving communications and trust, and by strengthening linkages, the members will develop shared objectives and collaborate in planning and implementing a new type of agricultural development. Implementation will be supported by innovative coordinated finance, targeted infrastructure development, technical guidance, training and capacity building, and a partnership structure coordinated by the independent AGCOT Centre Ltd, which houses the AGCOT Secretariat.

The notion of ‘partnership’ is a general concept enveloping the overall AGCOT approach. The work of coordinating and facilitating the partnership support and development activities falls entirely to the AGCOT Centre Ltd. 

The core constituents of AGCOT Centre Ltd are (i) its Board of Directors; (ii) tthe AGM; and (iii) the fulltime AGCOT Centre as the Secretariat to the AGCOT Initiative. The Board of The AGCOT Centre Ltd. is appointed by the Subscribers to the AGCOT Centre[1] and comprises seven members; five of whom have local experience, one who has international experience,, and one from a public sector institution. 

2.1 The AGCOT Partnership Membership

The Partnership shall be open to a diverse group of members with an interest in the development of Tanzania’s Agricultural Growth Corridors. Any organization wishing to become a member of the Partnership shall apply to the AGCOT Centre Ltd and will be admitted by the Partnership evaluation committee as a member of the Partnership. The members will include:

Members include public sector actors such as the Government of Tanzania and development partners; private sector entities ranging from smallholder-driven enterprises to medium and large agribusinesses; and supporting organisations including research institutions, civil society organisations (CSOs), and non-profit organisations. This categorisation is determined by the ownership and governance structure of each organisation and reflects AGCOT’s commitment to multi-stakeholder collaboration, ensuring that each actor plays a distinct and complementary role within the agricultural growth corridors.

3. The AGCOT Centre’s functions

To appreciate the context of the AGCOT Partnership Principles properly, it is essential that prospective members understand the work of the AGCOT Centre, the institution that will uphold the Partnership Principles. The AGCOT Centre serves as the Secretariat to the AGCOT Initiative, coordinating activities and investments that support large-scale, emergent, and small-scale farmers, as well as agri-business, in targeted high-potential areas known as “Clusters”. All activities and investments will be designed to be socially and environmentally responsible (please visit https://AGCOT.co.tz/index.php/AGCOTclusters/ ) Specific AGCOT Centre Ltd (ACL) functions are to:

  1. Promote the Partnership: to support and uphold the Partnership Principles and help each member understand what is expected of them, and what their roles and responsibilities are within the AGCOT framework.
  2. Coordinate corridor-related activities: by providing a professionally credible focal point to help partners plan, implement and review their own activities and link them to a wider set of ongoing and planned AGCOT-related activities.
  • Act as an honest facilitator between various parties – ACL was designed to be a partner identifier and convener, under the premise that while many organizations are already engaging in the agriculture sector, they could benefit from the added coordination to concentrate, streamline, and amplify their efforts to create collaboration and a larger impact iv. Support Agro-industrial Investment – ACL was designed to support industrial investment in the agricultural sector, working with current and potential investors, including farmers and SMEs, to identify and realise investment opportunities.
  1. Support farmers through other organizations – Through its value chain partners, ACL was designed to empower and strengthen small-scale farmers towards enabling farming as a business and integrate with farmer production systems for markets and value chain development.
  2. Help promote a stronger enabling environment for sector actors. – ACL was designed to interface with policy-makers to enhance visibility into actor needs and help identify priority policy areas for the advancement of the sector. 
  • Monitor and evaluate the Partnership’s impact: although each member will be responsible for monitoring their own development within the corridor, the AGCOT Centre will track overall progress. This will include the number, volume and impact of investments and the growth and profitability of large, small and medium-scale commercial agriculture in the corridor. Environmental and social impact, poverty reduction and the role of women and youth are also to be assessed 

4. Partner Evaluation Committee

The Partner Evaluation Committee (PEC) was established in June 2014 to formalize the onboarding process for potential partners and ensure they are a good fit with the SAGCOT Partnership (now known as AGCOT Partnership) and its objectives. Previously, partner registration was approved by the AGCOT Senior Management Team (as of 2012) and by the board and the Kilimo Kwanza Executive Committee (2011-2012). It was realised that there was a limited engagement of evaluators with experience in investment facilitation, private sector engagement, and businessenabling environment challenges. Therefore. It was recommended that AGCOT should have external evaluators on the committee.

The objectives of the Committee are three-fold: first, to ensure that potential partners are selected based on clearly defined partnership priorities, are actively engaged in the AGCOT, and fully understand and adhere to the AGCOT Partnership Principles; and second, to receive progress of the newly recruited potential partners if they have finalized their recruiting process by paying their partners’ contribution and third to oversee the exit process for partners who either request to withdraw from the partnership voluntarily or fail to comply with the established AGCOT Partnership Principles.

Partnership Applications are reviewed and assessments completed by AGCOT staff/ internal partner assessment committee and shared with the Partner Evaluation Committee members before the quarterly meetings. Assessments are based on the AGCOT Partnership principles, the Recruitment Strategy, and AGCOT objectives. 

Meetings will be held quarterly, depending on the availability of applications. The Evaluation Committee is responsible for reviewing, evaluating, and voting on all applications identified as potential partners for the AGCOT Partnership, as well as receiving reports from exiting partners.                 

5. The Partnership Principles

Each AGCOT Partnership member will be required to abide by the Partnership Principles:

  1. Agreement on the overall AGCOT Objectivessharing the AGCOT objectives for responsible commercial growth and food and nutrition security. This includes the need for commercially viable
  2. Agricultural businesses to incorporate emergent and small-scale farmers and their interests into their operations.
  3. Agreement to work with other members to promote a harmonised approach and strategy, so that within their particular sphere of activities, each member will cooperate with the overall, coordinated AGCOT programme of planning, investment, implementation, and policy reform.
  4. Agreement to engage with the partnership, maintain communication, and support the AGCOT Centre – to support the AGCOT Centre in its work. Until the benefits become evident, the underlying trust and intrinsic goodwill of each member will be essential to maintaining progress.
  5. Agreement to contribute to the resolution of policy and infrastructure constraints – by bringing to the attention of the AGCOT Centre their own concerns about specific factors that currently hinder local and national development of commercial agriculture. Members at all levels must be prepared and able to contribute to identifying and the resolution of these impediments, each according to their role and capacity.
  6. Agreement to consider new and innovative financing mechanisms, which are aimed at catalysing additional private investment in AGCOT in ways that ensure major benefits also accrue to smallholder farmers. This will require creative investment, and the willingness of farmers and agri- business to accept new types of risk and modifications to traditional practices.
  7. Agreement to adhere to the Inclusive Green Growth principles (to get the guiding tools, please visit http://AGCOT.co.tz/index.php/mdocuments-library/)

6. The AGCOT Partnership Management

Partnership management is a core function of the AGCOT Centre, encompassing relationship management, facilitation, and trust-building between the Centre and its partners. As an honest broker and information hub, AGCOT plays a central role in fostering collaborative relationships. The Partnership Management and Facilitation Team (PMFT) is responsible for maintaining and facilitating ongoing engagement with partners, while the Partnership Department oversees the coordination and monitoring of these interactions throughout the entire partnership management cycle.

Effective relationship management at AGCOT involves several key elements: engaging with partners to build mutual understanding; fostering trust both between AGCOT and its partners and among the partners themselves; connecting stakeholders to explore collaborative opportunities; convening dialogue platforms to address challenges and co-create solutions; delivering tangible value to partners; communicating successes to reinforce impact; and administering and monitoring engagements to ensure accountability and continuous improvement.

7. Partner expectations from the AGCOT Centre

Members who subscribe to the Partnership Principles and pay the partnership contribution (see Section 9) will have full access to information, networking, professional services and other opportunities as can be provided or brokered by the AGCOT Centre. Specific benefits to members of the AGCOT Partnership will include:

a. Farmers and Farmer Organizations

  1. Improved linkages with commercial agribusiness ii. Access to information on current best agricultural practices to increase productivity and competitiveness, and contacts for specialist support if needed

iii. Connections to improved marketing systems and finance iv. Opportunities to link with other farmers, both small-scale and large-scale

b. Local and International Agribusiness

  1. Facilitating access to relevant finance ii. Coordination of infrastructure development to support commercial investments iii. Access to an enlarged potential client base iv. Support for an improved business environment for agriculture v. Access to analysis of value chain issues
  2. Linkages to complementary companies and new opportunities for risk-sharing partnerships

c. Private Sector Financial Institutions and Development Funds

  1. Introductions to areas where a critical mass of commercial agriculture is being developed ii. Identification of commercial opportunities and potential clients interested in short and long-term finance
  • Guidance to areas where complementary finance, such as matching grants or other instruments, is required
  1. Lower transaction costs due to available background information and analysis

d. Local and national Government

  1. Identification of focal points for prioritised and targeted public investment to enhance commercial agriculture
  2. Identification of priority infrastructure needs iii. Access to analysis and feedback on priority policy, regulatory, fiscal and legislative constraints currently hindering agricultural profitability and further private investment
  3. Feedback of practical suggestions on how to improve the business environment for agricultural growth

e. Development Partners

  1. Identification of target areas and activities for coordinated programs to enhance private sector development that supports linkages to smallholders
  2. Access to analysis and feedback on priority policy, regulatory, fiscal and legislative constraints currently hindering agricultural profitability and further private investment
  • Identification of effective entry points for improved environmental management, responses to climate change and support to women, youth and the disadvantaged in development.

f. Civil Society/NGOs

  1. Identification of entry points to enable the provision of their specific services and support where complementary activities are already underway
  2. Participation in key discussions on key policy and regulatory issues iii. Opportunities to link with and add value to commercially driven agri-business activities in the clusters

8. Complaints and Disputes

If partnership members have substantial concerns or complaints about the Centre’s actions or the way in which it is operating, they can formally register them in writing to the Chairman of the Board of the AGCOT Centre Ltd. These will then be discussed at the next Board Meeting for any appropriate action. Alternatively, Partners can register their grievances via 

http://AGCOT.co.tz/index.php/grm/#152719328235012fb14561660  

9.  Partnership and Contributions

Membership in the AGCOT Partnership, which will be gained through an application to the AGCOT, will be subject to an annual partnership contribution payment. Membership, subject to approval by the Partner Evaluation Committee, will provide participation in the AGCOT Partnership meetings and access to Partnership activities, including task forces, information sharing, and meetings.

The purpose of the partnership contribution is to ensure that only serious, committed organisations join the partnership through the AGCOT Centre. The contributions will be paid into the AGCOT Centre and used for specific operations such as the AGCOT Partnership activities. All contributions are renewed annually on January 1st. Non-payment of fees within three consecutive years will result in membership being first suspended and then withdrawn completely

9.1 The Partnership contribution scales 

Partnership contributions under AGCOT are structured based on the financial capacity and nature of the partnering organisations. For private companies, the contribution amount is determined by their global annual revenue, ensuring that larger corporations with higher income levels contribute proportionally more to support the partnership’s objectives. In the case of Civil Society Organisations (CSOs), their contributions are guided by the level of external funding they receive, recognising their typically non-profit nature and reliance on donor financing. However, Public Sector (Government of Tanzania and Development Partners), government institutions are exempted from making financial contributions, as their involvement is considered a public service and essential to policy alignment, regulation, and enabling environment support within the AGCOT framework. This tiered contribution approach helps maintain fairness, inclusivity, and sustainability in managing and supporting AGCOT partnerships.

The following partnership contribution scales will be applied:

Organization TypeAnnual Fee
Large Companies (Global Turnover -> USD 5 million)TZS 4,000,000
Medium Companies (USD 1 million <- Global Turnover <- USD 5 million)TZS 1,000,000
Small Companies (Global Turnover <- USD 1 million), Development Partners, Research Organizations, CSOs
and Government Agencies or Institutions
TZS 250,000
Apex or Farmer OrganizationTZS 50,000

9.2 Exemptions from Partnership Contribution

The AGCOT Centre recognises the diverse nature of its stakeholders and, as such, applies specific exemptions to the partnership contribution. Subscribers to the AGCOT Centre (i.e., company members), Development Partners, the Government of Tanzania, certain Private Sector funders, and Knowledge Partners may be exempted from this financial obligation. These exemptions are granted in recognition of significant contributions, whether financial, technical, or strategic, towards the implementation of AGCOT initiatives and corridor-based interventions. This approach ensures that all forms of meaningful support are valued and encourages continued collaboration and investment in achieving AGCOT’s goals.

10. Public Relations

  1. All member organisations agree that their membership in the AGCOT Partnership can be advertised by the AGCOT Centre in relevant communications, including the AGCOT Centre’s website.
  2. The AGCOT Centre will not provide contact details to third parties without the member’s prior consent.
  3. No member shall claim to represent the AGCOT Partnership without the express agreement of the AGCOT Centre Board.

11. Social & Ethical Obligations

Members are strictly advised to refrain from intentionally causing harm, whether directly or indirectly, to the professional reputation, growth prospects, or business interests of the AGCOT Partnership and therefore the initiative.  They are expected to be be a living example of building and nurturing trust and integrity within the collaborative network. The following shall be expected in the partnership:

  1. Commitment to upholding labour laws, including policies to prevent child labour and forced labour, and ensuring a fair and ethical workforce.
  2. Implementation of a robust Environmental Social and Governance (ESG) strategy to address community needs and promote social development.
  3. Adherence to environmental management practices that align with sustainable agriculture and mitigate ecological impact.
  4. Regular reporting and transparency on social and ethical performance to foster accountability and trust among stakeholders

12. Failure to comply with these Principles of Membership

  1. Any breach of these Principles should be brought to the attention of the AGCOT Centre CEO;
  2. The AGCOT Partnership, through the AGCOT Centre, reserves the right to withdraw membership for serious breaches of these Principles, without refund of partnership contributions paid, based on a majority agreement of the Board members; and
  3. Failure to pay annual partnership contributions is construed as a breach of the SACGOT Partnership principles and will trigger a review of the partnership/relationship by the evaluation committee to assess whether to suspend investment facilitation support to the partner until the annual partnership contribution is paid.