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5 The BAGC

The BAGC has all the natural conditions required for successful agriculture: good soils and climate, access to land and water resources. The major part of the corridor proper, Mozambique to Zimbabwe, contains a large area with huge agricultural potential. Of the ten million hectares of arable land available in the corridor area in Mozambique, only 1.5 million hectares are farmed; only 2 percent is farmed commercially, with less than 0.2 percent under irrigation; 98 percent is farmed by smallholders. About 190,000 hectares of land could be put under irrigation and produce world-class yields, with crops sold profitably in domestic, regional, and international markets. In Mozambique alone, at least 200,000 smallscale farmers are estimated to benefit directly from improved yields and increasing incomes as a result of the corridor; creating 350,000 new jobs and helping move up to one million people out of extreme poverty.

The BAGC is the gateway to south east Africa, linking inland areas of Zambia, Malawi, Zimbabwe, and Mozambique by road and rail networks to shipping facilities at Beira. During the time of apartheid South Africa in the 1980s, the Beira corridor was refurbished as an alternative trade route for Zimbabwe, until falling prey to the war in Mozambique and subsequent collapse of the economy in Zimbabwe. Much of the infrastructure has been repaired, and several major transportation projects are underway, including the Sena railway line to Tete and the port of Beira. The Machipanda rail line to Zimbabwe is operational.

The BAGC blueprint calls for total investments of $1.74 billion: An estimated

$1.49 billion from the private sector alongside public sector grants and loans of

$0.25 billion over a twenty year period.

6 The SAGCOT

The SAGCOT harbors a tremendous potential to increase the agricultural productivity in the region and farm output, especially in Tanzania. It could transform largely subsistence smallholder agriculture into a sustainable commercial farming sector, serving local, regional, and international markets. The Blueprint for Investment aims to bring more than 350,000 hectares into profitable, commercial production, tripling the area's agricultural output. It could lift two million people permanently out of poverty by creating at least 420,000 new employment opportunities within in the agricultural value chain – and bring Tanzania annual farming revenues of an estimated $1.2 billion.

The SAGCOT benefits from existing infrastructure along the traditional trade route linking Tanzania to landlocked countries to the west, especially Zambia, Malawi, and the Congo. This route is also known as the Tazara Corridor, where the Tanzania–Zambia railway line (Tazara), originally built by China in the 1970s, links Dar es Salaam and the Zambian Copper Belt, and where the parallel Tanzania–Zambia highway (Tanzam) and the Tanesco electricity grid run. Building on Tanzania's Kilimo Kwanza (Agriculture First) strategy, the SAGCOT initially focuses on high-potential agricultural land, especially the areas on either side of the infrastructure backbone from Dar es Salaam through Morogoro to Mbeya. The corridor has a varied range of climates and altitudes, and diversity of soil qualities, which allows for a broad scope of crop production, including cereals, horticulture, coffee, tea, sugar, potatoes, banana, beans, vegetables, and sunflowers, as well as for beef, poultry, and dairy.

The SAGCOT blueprint calls for total investments of $3.4 billion; $2.1 billion from the private sector alongside public sector grants and loans of $1.3 billion over a twenty year period.

 
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