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China-Africa Trade Information Service
info.afrindex.com
China-Africa Trade Information Service
Image from Ken Research
It is reported that Tanzania is currently facing huge losses in edible oil production. Currently, it mainly relies on imports to meet the growing demand for edible oil. Last year, the import of edible oil reached 294 million US dollars.
The East African nation imports 64 percent of its total edible oil requirements despite having a vast and promising production potential in palm oil and sunflower sub-sectors. According to the Tanzania Investment Centre (TIC), annual demand for edible oil stands at 500,000 tonnes, whereas the country’s supply is only 180,000 tonnes, forcing it to import 320,000 tonnes annually.
And with demand set to increase by to 700,000 tonnes over the next 11 years, the government is seeking investors in the oil processing sector to help bridge the supply gap, and reduce the huge import burden.
Tanzania is Africa's second-biggest producer of sunflower seeds.The major sources of edible oil in Tanzania are a sunflower, palm, groundnuts, sesame, soya beans and cotton, while oilseeds are produced in almost all regions in the country.
In 2017, sunflower oil contributed about 40 percent of edible oil requirement of 330,000 tonnes, according to a Bank of Tanzania (BoT) research paper, the 60 percent deficit was plugged by imports.
Considering the fact that requisite raw materials are readily available locally, the Tanzanian government has been making efforts to get investments in edible oil processing. Last year, there were reports that the Tanzanian government, through TIC, was negotiating with prospective investors and encouraged them to establish cooking oil processing factories in the country.
Furthermore, the country's deputy minister Anthony Mavunde revealed that the government was working in collaboration with the United Nations Food and Agriculture Organization (FAO) and the United Nations Industrial Development Organization (UNIDO), to develop a strategy intended to boost production of oilseeds designed to fill the deficit gap of cooking oil.
