1.
Introduction
As part of the Agricultural Economics course, students from the University of Iringa conducted a
study tour to Sokoine University of Agriculture (SUA), hosted by the Sokoine University Graduate
Entrepreneurs Cooperative (SUGECO).
The objective was to gain practical knowledge and exposure to financial operations in agriculture—
specifically focusing on agricultural startups, incubation, project financing, and value chain
development. This report synthesizes the academic content, practical observations, and relevance to
financial operations in the context of agricultural entrepreneurship.
1. OBJECTIVES OF THE STUDY TOUR IN DETAIL.
To understand financial operations in agricultural economics.
To explore real-world agricultural financing models and startup incubation.
To gain exposure to value chain development in agribusiness.
To learn about youth empowerment programs such as KIZIMBA and BBT.
To interact with practitioners and understand local and international support in agricultural
entrepreneurship.
2. KEY LEARNING POINTS FROM SUGECO
2.1 About SUGECO
SUGECO is an entrepreneurial and innovation platform established at SUA that aims to transform
agricultural graduates into agripreneurs. It links education, entrepreneurship, innovation, and
employment opportunities, especially for youth in Tanzania.
2.2 Overview of SUGECO and Its Strategic Role
SUGECO is a leading agribusiness support institution affiliated with SUA. Its mission is to transition
young graduates into agri-entrepreneurs by offering startup support, incubation, training, financial
services, and market linkages.
Core Services:
Startup Incubation Program: This is a structured system to support agribusiness
entrepreneurs at the ideation and early growth stages. It includes business model
development, seed funding access, mentoring, and prototyping. Incubation aligns with key
financial operations by reducing risk, increasing startup survival, and facilitating scalability
(Matshe et al., 2018).
Financial Linkages: SUGECO connects entrepreneurs to institutions like TADB, CRDB, NMB,
and MFIs. These relationships ensure customized financial solutions for different agricultural
ventures (Zeller & Sharma, 1998).
Capacity Building: Training modules cover financial literacy, agribusiness planning, market
research, and innovation, directly complementing academic theories.
Internship and Mentorship Programs: These provide real-time industry exposure and
coaching, strengthening the practical application of financial operation knowledge.
3.5 Sponsorships and International Support
SUGECO facilitates:
Internal and External Sponsorships: From government and international bodies such as:
Germany (GIZ)
Canada (Global Affairs Canada)
USA (USAID, YALI)
Spain and others
These support scholarships, exchange programs, technical assistance, and research funding
in agribusiness.
KIZIMBA and BBT Integration: The KIZIMBA program is part of the national "Building a Better
Tomorrow" (BBT) strategy. It focuses on land access, financing, technical training, and youth
empowerment in agriculture.
Sponsorship and Exposure Programs: SUGECO provides international learning and funding
opportunities in countries like Germany, Canada, and the USA, linking local innovation with
global agribusiness models.
3. Deep Dive: Financial Operations in Agriculture
Financial operations in agriculture involve managing and optimizing the flow of financial resources
across the value chain. At SUGECO, we observed comprehensive models that reflect what is taught in
Agricultural Economics.
a) Agricultural Financial Planning
Students learned how to develop:
Seasonal production budgets
Cost analysis tools
Projected income statements
Cash flow statements
Financial forecasts
These instruments are vital for decision-making, investment evaluation, and accessing finance
(Olson, 2021).
b) Startup Development and Financing
SUGECO's startup support involves:
Startup capital facilitation (grants, loans, savings)
Mentorship and technical assistance
Business registration and legal guidance
Access to early customers and markets
Such support is essential for turning agricultural ideas into sustainable enterprises. Startups also
undergo feasibility studies using tools such as:
Net Present Value (NPV)
Internal Rate of Return (IRR)
Cost-Benefit Analysis (CBA)
Break-Even Analysis (BEA)
These tools form the core of financial operations in agriculture.
c) Sources of Finance for Agripreneurs
The study exposed students to diverse funding options:
Commercial Banks (CRDB, NMB)
Development Banks (TADB)
Microfinance Institutions (MFIs) and SACCOS
Government youth schemes (BBT)
NGOs and Donors
Self-financing and informal groups
Each source comes with distinct eligibility, risks, and financing conditions (World Bank, 2017).
d) Financial Record-Keeping and Reporting
SUGECO emphasizes strong financial management through:
Daily expense logs
Income statements
Profit and loss statements
Inventory records
Tax documentation
Proper records improve creditworthiness and business accountability.
e) Risk Management and Agricultural Finance
Financial operations must account for agricultural risks such as droughts, pests, and market price
fluctuations. Techniques promoted by SUGECO include:
Agricultural insurance schemes
Enterprise diversification
Building financial reserves
Use of weather data and technology
These strategies were linked to sustainability goals taught in class (FAO, 2020).
f) Marketing, Value Addition, and Financial Return
Branding and packaging
Digital marketing training
Establishment of customer loyalty
Students saw how SUGECO-trained farmers reach wider markets and improve profitability through
these mechanisms.
4. Course Relevance and Learning Outcomes
Academic Topic Field Application at SUGECO
Investment appraisal, financial recordkeeping, budgeting, and cost
Financial Operations
control
Agribusiness Management Value chain mapping, market strategies, and scaling
Entrepreneurship
Incubation, startup mentoring, and innovation support
Development
Agricultural Finance Access to credit and tailored financial solutions
Risk Management Insurance schemes and financial resilience building
Youth Empowerment and
KIZIMBA and BBT strategies
Policy
Internationalization Sponsorships and global exposure
5. Conclusion
The study tour to SUGECO served as a critical link between academic theory and agribusiness
practice. The institution's robust incubation program and financial support ecosystem showcase how
practical financial operations are applied in real agribusiness contexts. Our academic training in
Agricultural Economics found direct application in budget preparation, investment analysis, financial
sourcing, startup mentoring, and project sustainability strategies.
This experience significantly enhanced our understanding of how structured financial operations can
transform agriculture into a dynamic and profitable sector, especially for youth in Tanzania.
REFERENCES
FAO. (2020). Agribusiness finance and risk management: A training manual. Food and Agriculture
Organization of the United Nations. https://www.fao.org
Matshe, I., Moyo, M., & Saruchera, M. (2018). Agricultural Finance and Investment in Africa:
Innovative Approaches and Mechanisms. Palgrave Macmillan.
Olson, K. D. (2021). Economics of Agricultural Development: World Food Systems and Resource Use.
Routledge.
SUGECO. (2021). Programs and Services. Sokoine University Graduate Entrepreneurs Cooperative.
https://sugeco.org
United Republic of Tanzania (URT). (2022). Building a Better Tomorrow (BBT): Youth Agribusiness
Strategy. Ministry of Agriculture.
World Bank. (2017). Enabling the Business of Agriculture. World Bank Group.
https://eba.worldbank.org
Zeller, M., & Sharma, M. (1998). Rural Finance and Poverty Alleviation. International Food Policy
Research Institute (IFPRI).
