How can the got reduce Tanzania’s dependence on imported edible oil?
The GoT wants to reduce Tanzania’s dependence on imported edible oil by boosting domestic oil seed production and downstream oil processing capacity. In 2016 the GoT implemented a 10% tariff on imports of CPO as one mechanism to support this objective, but stakeholder views on the merits of the tariff policy are mixed.
Why are edible oilseed crops used in Tanzania?
The choice of edible oilseed crops is supported by the fact that Tanzania’s large national demand for edible oil requires imports to meet about 60% of demand [ 1, 11 ]. The demand for imported edible oils is increasing, resulting in about US $ 294 billion of foreign currency reserves being spent annually [ 1, 11, 12 ].
What is the demand gap for edible oil in Tanzania?
Much of the demand gap is currently met by imported edible oil (60% across all edible oils, 55-70% for sunflower oil) (Salisali, 2017). The GoT wants to reduce Tanzania’s dependence on imported edible oil by boosting domestic oil seed production and downstream oil processing capacity.
Which edible oils industry is most likely to be impacted in Tanzania?
Focusing on sunflower is a strategic choice that is most likely to have the greatest impact in the edible oils industry in Tanzania; palm and cotton (as well as other value chains) can be pursued once critical barriers have been resolved 6,913,782 6,629,708 6,576,743 16,147,884 31,647,531 57,818,852 57,562,064