Somalia: A Look at the Oils and Fats Market for 2023

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Somalia is located in the Horn of Africa, with a long coastline along the Indian Ocean and the Gulf of Aden. Despite possessing diverse natural resources, the country suffers from developmental and economic challenges due to several factors, including the political and security situation. With a population estimated at around 17 million (2023 estimates), the oils and fats sector relies heavily on imports to meet growing domestic demand.

Imports in 2023

The data for 2023 shows Somalia’s reliance on importing vegetable oils from global markets, as follows:

• Total imports: 163 thousand metric tons
• Leading oils imported:
  1. Palm oil: 151 thousand metric tons
  2. Soybean oil: 4 thousand metric tons
  3. Sunflower oil: 6 thousand metric tons
  4. Coconut oil: 2 thousand metric tons

These figures indicate the dominance of palm oil in Somalia’s oil and fat imports, as it is widely used in cooking and the food industries due to its suitable price and availability in international markets.

Factors Affecting the Somali Oils and Fats Market

1. Climate conditions: a desert and semi-desert environment prevails across Somali land, which limits the ability to grow oilseed crops in sufficient quantities.
2. Limited infrastructure: the import sector faces challenges in transport, storage and distribution, especially in inland areas far from the ports.
3. Security and political conditions: these affect economic stability and limit investment opportunities in the agriculture and processing sectors.
4. Consumer preferences: the Somali consumer relies mainly on palm oil due to its availability and suitable price, while demand is rising for other oils such as soybean and sunflower for health reasons or cooking preferences.

Recommendations

1. Diversify import sources: to avoid the risks of global price volatility and to ensure a continuous supply of oils in the domestic market.
2. Encourage domestic production: the potential for growing certain oilseed crops in areas with suitable soil and climate can be explored, along with leveraging livestock resources to produce certain types of fats.
3. Develop supply chains: invest in transport, storage and port infrastructure, with the aim of reducing costs and improving supply efficiency.
4. Raise health awareness: educate the public on the importance of diversifying oil and fat consumption and balancing their use, while encouraging healthy alternatives such as sunflower and soybean oil.

Conclusion

The volume of oil and fat imports in Somalia during 2023 reflects the country’s continued reliance on foreign markets to meet most of its oil needs, especially palm oil. Despite the challenges associated with climate conditions and the security situation, there are opportunities to develop the agricultural and processing sectors with the aim of achieving greater self-sufficiency and improving food security over the long term.

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