electric cooking oil production line in tanzania

                                               
                                               
                                               
                                               
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  • Does Tanzania import cooking oil?
  • Given a shortfall of 360K metric tons, Tanzania imports over 60% of the country’s cooking oil. This costs USD 250M in palm oil imports every year, making it the sector with the second highest foreign exchange transactions by value. However, the country has a large and growing refined sunflower oil industry that can substitute these imports.
  • Does Tanzania have a shortage of edible oil?
  • While the local and regional market for edible oils is large and growing, local supply in Tanzania is not keeping up. Given a shortfall of 360K metric tons, Tanzania imports over 60% of the country’s cooking oil. This costs USD 250M in palm oil imports every year, making it the sector with the second highest foreign exchange transactions by value.
  • What challenges are facing the edible oil industry in Tanzania?
  • While early developments in the edible oils industry in Tanzania are promising, particularly in sunflower oil production, a few challenges have emerged in the value/production chain. These, in turn, present opportunities moving forward: Current lack of seed and working capital means processors are at 45% capacity in-season and 5% off-season.
  • Should SMEs invest in edible oils in Tanzania?
  • In particular, the team found that large Tanzanian companies are well positioned to make this investment; investors can source raw materials from local SMEs, which would experience higher productivity from rising demand. In late 2017, the USAID team designed a three-phase feasibility study for the edible oils sector.