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Tanzania has unveiled a bold new policy aimed at transforming its edible oil sector, requiring that within two years, only investors who own oil crop farms will be eligible to import edible oil. Daniel Chongolo, the Agriculture Minister, announced this strategy during the edible oil industry investment forum, emphasizing it as part of a long-term plan to increase investment in oil crop production and processing.
This initiative seeks to reduce Tanzania's reliance on imports, strengthen domestic production, and position the nation as a net exporter of edible oil. Starting two years from now, import permits for edible oil will be issued exclusively to investors directly engaged in cultivating oil crops. After four years, imports will only be permitted to bridge any remaining gap between domestic production and national demand.
Minister Chongolo clarified, 'After two years, the only person eligible to import edible oil will be one who cultivates oil crops. After four years, an investor will only be allowed to import the exact volume needed to fill the deficit.' He also noted that this move is intended to conserve the foreign exchange currently spent on purchasing the commodity from overseas.
Tanzania spends over $200 million annually on edible oil imports despite possessing abundant land and favorable conditions for local oil crop production. The government aims to significantly reduce this expenditure by 2030 through expanded domestic production and increased investment in the sector. The country's annual edible oil consumption exceeds 700,000 metric tonnes, while local production stands at approximately 300,000 metric tonnes, leaving a substantial supply deficit currently met through imports.
To address this shortfall, the government has allocated more than 500.6 billion Tanzanian shillings to accelerate the development of the edible oil industry. Ministerial officials are working closely with other ministries to ensure the sector achieves its production targets and contributes more significantly to economic growth. The Minister asserted that Tanzania must transition from being primarily a trading nation to becoming a producer, making full use of its agricultural land, natural resources, and workforce.
Charles Ogutu, CEO of the Agricultural Markets Development Trust (AMDT), stated that Tanzania holds enormous potential to expand edible oil production due to its vast areas suitable for cultivating sunflower, palm, and other oil crops. The industry's 10-year development strategy focuses on increasing sunflower and palm oil production to achieve national self-sufficiency before expanding into export markets.
Ogutu highlighted that low productivity per hectare is one of the sector's biggest challenges, necessitating greater adoption of improved seed varieties, modern farming technologies, and better agronomic practices to raise yields. He suggested that implementing the development plan will require investments exceeding one trillion Tanzanian shillings from the government, the private sector, and development partners.
Irene Mlola, Director General of the Cereals and Other Produce Regulatory Authority (COPRA), confirmed that the government has already commenced implementing the strategy through new regulations governing edible oil imports and domestic production. These regulations, signed by the minister in April, are designed to ensure that companies importing edible oil also contribute to expanding local production.
COPRA is actively engaged in conducting annual assessments of national edible oil demand to ensure imports are limited to genuine market shortfalls while safeguarding local producers and investors. The long-term objective is to build a sustainable edible oil industry that guarantees markets for farmers, encourages investment in production, and strengthens Tanzania's food security and export potential.
Source: ippmedia.co.tz