Overview
Despite strong growth in sunflower seed production, the level of edible oil processing in TZ is low compared to prevailing demand (est. at 300,000 – 400,000 tons a year). 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.
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. This study collected evidence through a literature review, survey, stakeholder consultations and analysis of available data to assess the impact of the tariff on demand and supply dynamics. The ultimate objective is to inform future policies to facilitate greater investment in domestic production, processing and refining in Tanzania’s edible oil sector. For more information about edible oils, please click here
Quick Facts
- Imports: US$83.19 million (2018)
- Annual Demand: 570,000 tonnes
- Annual Supply: 180,000 tonnes
- Demand forecast: 700,000 tonnes (2030)
Available opportunities
- Large scale farming of oil seeds to address supply gap.
- Establishment of oil seeds processing facilities.
- Establishment of refineries.