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China-Africa Trade Information Service
info.afrindex.com
China-Africa Trade Information Service
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Zimbabwe’s edible oils sector says it remains feasible inspite of intermittent stockouts, but faces challenges related to low soya output and a persistent shortage of foreign currency.
Some of the biggest oil producers include United Refineries, ETG Parrogate, Surface-Wilmar, Olivine and Willowton.
Oil Expressers Association of Zimbabwe president Busisa Moyo also revealed, in an interview with NewsDay that the sector was too “saturated” to accommodate new entrants.
“The industry is now saturated, but we need to grow more soyabeans as we need 240 000 tonnes per year versus the current 60 000 tonnes produced by our farming community,” Moyo said.
“Government needs to give Treasury Bills (TBs) as security for farmers to access loans from banks since 99-year leases are still not bankable,” he said.
The edible oils industry has recovered significantly since the introduction of Statutory Instrument 64 of 2016, which bans the importation of cooking oil and other fast-moving consumer goods. The country, which has a monthly requirement of 11,500 tonnes of cooking oil, has previously relied on cheaper imports mainly from neighbouring South Africa.
Local edible oil producers reportedly have the capacity to supply 12,000 tonnes of cooking oil per month, which is more than enough to meet local demand of 10,000 tonnes.
