Brochure The Sustainable Asset Valuation of the Southern Agricultural Growth Corridor in Tanzania (SAGCOT) Initiative: A focus on irrigation
Summary
This fact sheet presents a Sustainable Asset Valuation (SAVi) assessment of the Southern Agricultural Growth Corridor of Tanzania (SAGCOT) Initiative, specifically comparing the impacts of flood irrigation versus drip irrigation technologies on agriculture expansion and natural resources.
Key insights
- The SAGCOT Initiative intends to expand agricultural land by 350,000 hectares to increase the processing and production of agricultural goods, with 51,800 hectares of this expansion planned for the Kilombero basin.
- A comparison of irrigation technologies shows that drip irrigation allows for a larger area of land to be irrigated due to water savings, leading to higher revenues (USD 168.61 million) compared to flood irrigation (USD 117.65 million). However, drip irrigation requires higher capital investment, with costs ranging from USD 1,500 to USD 3,000 per hectare, whereas flood irrigation is estimated at USD 81.50 per hectare.
- The net benefits of the project vary significantly by scenario: a low CAPEX drip irrigation scenario yields the highest net benefit at USD 39.21 million, followed by flood irrigation at USD 12.88 million, and a high CAPEX drip irrigation scenario at USD 3.98 million. The analysis concludes that drip irrigation only outweighs flood irrigation in the low CAPEX scenario.
- Projections for 2030 indicate that implementing SAGCOT with drip irrigation would result in 8% more employment and 8% more agricultural production, while using 14% less water than flood irrigation.
- Financial indicators show that the Internal Rate of Return (IRR) for the low CAPEX drip irrigation scenario is 13.42%, which is significantly higher than the 6.20% IRR generated by flood irrigation.
Cite the original document
- APA
- International Institute for Sustainable Development (n.d.). Brochure The Sustainable Asset Valuation of the Southern Agricultural Growth Corridor in Tanzania (SAGCOT) Initiative: A focus on irrigation. https://www.iisd.org/system/files/publications/savi-sagcot-tanzania-initiative-brochure.pdf
- Chicago
- International Institute for Sustainable Development. Brochure The Sustainable Asset Valuation of the Southern Agricultural Growth Corridor in Tanzania (SAGCOT) Initiative: A focus on irrigation. n.d. https://www.iisd.org/system/files/publications/savi-sagcot-tanzania-initiative-brochure.pdf.
- Wikipedia
- {{cite report |author=International Institute for Sustainable Development |title=Brochure The Sustainable Asset Valuation of the Southern Agricultural Growth Corridor in Tanzania (SAGCOT) Initiative: A focus on irrigation |url=https://www.iisd.org/system/files/publications/savi-sagcot-tanzania-initiative-brochure.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{internationalinstituteforsustainabledevelopmentndbrochure, author = {{International Institute for Sustainable Development}}, title = {{Brochure The Sustainable Asset Valuation of the Southern Agricultural Growth Corridor in Tanzania (SAGCOT) Initiative: A focus on irrigation}}, institution = {International Institute for Sustainable Development}, url = {https://www.iisd.org/system/files/publications/savi-sagcot-tanzania-initiative-brochure.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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