The Sustainable Asset Valuation of the Southern Agricultural Growth Corridor of Tanzania (SAGCOT) Initiative: A focus on irrigation infrastructure

This report by the International Institute for Sustainable Development (IISD) uses the Sustainable Asset Valuation (SAVi) tool to compare the financial and socioeconomic impacts of flood versus drip irrigation for the Southern Agricultural Growth Corridor of Tanzania (SAGCOT) initiative, specifically within the Kilombero Valley. The analysis demonstrates that while drip irrigation has higher initial costs, it significantly improves water efficiency, unlocks additional productive land, and enhances long-term financial viability when environmental and social externalities are factored into the valuation.

• The SAGCOT initiative aims to expand agricultural land by 350,000 hectares in total, with 51,800 hectares planned specifically for the Kilombero Valley to increase production and processing of agricultural goods.
• Drip irrigation, with an efficiency of 82 per cent, is projected to unlock an additional 10,600 hectares of agricultural land, leading to a 20 per cent increase in production and generating USD 51 million in additional revenues over 25 years.
• Under a low-cost assumption (USD 1,500 per hectare), drip irrigation yields net benefits of USD 39.2 million over 25 years, compared to USD 12.9 million for flood irrigation. However, under a high-cost assumption (USD 3,000 per hectare), the net benefits for drip irrigation drop to USD 3.98 million.
• Traditional financial analyses that ignore externalities suggest flood irrigation performs better. However, when externalities—such as water savings and additional land revenues—are included, drip irrigation outperforms flood irrigation across all key financial indicators.
• Drip irrigation significantly reduces water stress and stabilizes local populations by mitigating seasonal migration patterns. In the flood irrigation scenario, water demand is projected to be almost three times the available supply by 2030, whereas drip irrigation reduces this to twice the available supply.
• The use of drip irrigation is estimated to create approximately 22,094 more jobs in the middle and long term compared to the flood irrigation scenario under water-constrained conditions.

APA

Bassi, A. M., Casier, L., Pallaske, G., Perera, O., & Uzsoki, D. (2018). The Sustainable Asset Valuation of the Southern Agricultural Growth Corridor of Tanzania (SAGCOT) Initiative: A focus on irrigation infrastructure. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/savi-tanzania-sagcot-initiative.pdf

Chicago

Bassi, Andrea M., Liesbeth Casier, Georg Pallaske, Oshani Perera, and David Uzsoki. The Sustainable Asset Valuation of the Southern Agricultural Growth Corridor of Tanzania (SAGCOT) Initiative: A focus on irrigation infrastructure. International Institute for Sustainable Development, 2018. https://www.iisd.org/system/files/publications/savi-tanzania-sagcot-initiative.pdf.

Wikipedia

{{cite report |last1=Bassi |first1=Andrea M. |last2=Casier |first2=Liesbeth |last3=Pallaske |first3=Georg |last4=Perera |first4=Oshani |last5=Uzsoki |first5=David |title=The Sustainable Asset Valuation of the Southern Agricultural Growth Corridor of Tanzania (SAGCOT) Initiative: A focus on irrigation infrastructure |publisher=International Institute for Sustainable Development |date=December 2018 |url=https://www.iisd.org/system/files/publications/savi-tanzania-sagcot-initiative.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bassi2018sustainable, author = {Bassi, Andrea M. and Casier, Liesbeth and Pallaske, Georg and Perera, Oshani and Uzsoki, David}, title = {{The Sustainable Asset Valuation of the Southern Agricultural Growth Corridor of Tanzania (SAGCOT) Initiative: A focus on irrigation infrastructure}}, institution = {International Institute for Sustainable Development}, year = {2018}, month = dec, url = {https://www.iisd.org/system/files/publications/savi-tanzania-sagcot-initiative.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }