• What is the demand gap for edible oil in TZ?
  • 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 ¨C 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).
  • Does Tanzania produce enough edible oil?
  • However, Tanzania believes it has the capacity to produce enough of the required edible oil and so undertook measures to boost production. In the 2018/19 financial year, the country increased the tariffs on crude palm oil to 25 per cent so as to promote local production of oil seeds.
  • Should SMEs invest in edible oils in Tanzania?
  • In particular, the team found that large Tanzanian companies are well positioned to make this investment; investors can source raw materials from local SMEs, which would experience higher productivity from rising demand. In late 2017, the USAID team designed a three-phase feasibility study for the edible oils sector.
  • How can the got reduce Tanzania’s dependence on imported edible oil?
  • 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.