Investment opportunities introduction: Tanzania has a significant supply gap for edible oil for domestic consumption. This presents an opportunity for investment in local processing for edible oil. The current production capacity is only 36% of total edible oil demand (6, 7).
Where does Tanzania import palm oil?
The main destinations of Tanzania exports on Palm Oil were Democratic Republic of the Congo ($1.42M), Rwanda ($776k), Zambia ($303k), Burundi ($170k), and Netherlands ($160k). In 2021, Tanzania imported $480M in Palm Oil, mainly from Indonesia ($240M), Malaysia ($225M), Kenya ($7.58M), Singapore ($2.66M), and Ghana ($2.39M).
Should oil palm oil be expanded beyond Kigoma Region?
Particular emphasis is on expanding the production zones for oil palm oil beyond Kigoma region, the traditional production area. The 19,641 hectares currently farmed represents just 17.2% of the area suitable for growing oil palm, suggesting significant room for expansion (4).
How much edible oil does Tanzania import a year?
Critical IOA Unit Tanzania imports 320,000 tons of edible oil per year. Tanzania¡¯s annual demand for edible oil stands at 500,000 tons, whereas the country can supply only 180,000 tons, forcing it to import 320,000 tons each year, signaling major opportunities for import substitution (7).