Tanzania allows foreign investors to make direct and indirect investments. Currently, some imported goods, as well as goods and services intended for export, are exempt from VAT. Capital goods invested in the most favorable areas are exempt from import duties, and agricultural projects are exempt from import duties on raw materials and capital goods except for buildings.
The following are the key areas:
1. Cashew nut processing: Cashew nuts are the main cash crop in Tanzania, and the annual output has increased to 120,000 tons, but only about 10% of cashew nuts are processed in Tanzania, so it is recommended to transform old factories or build medium-scale processing factories.
2. Oilseeds: Tanzania still imports a large amount of edible oil. The local demand for oilseed processing is on the rise, so oil extraction and processing equipment is available. Common oilseeds produced in the country include sunflower, sesame, peanut, palm oil, etc.
Tanzania’s annual demand for edible oil is 500,000 tons
According to Tanzania’s annual demand for edible oil is 500,000 tons, while the country’s supply is only 180,000 tons, forcing it to import 320,000 tons of edible oil per year. Tanzania expects its annual demand to increase to 500,000 tons in the next five years. The government is seeking investors in the edible oil industry to help close the supply gap and ease the huge import burden.
Tanzania is the second largest producer of sunflower seeds in Africa. Common edible oils in Tanzania include peanut oil, palm oil, sunflower oil, soybean oil, sesame oil, etc. The Tanzanian government has been working hard to increase edible oil processing capacity. This is a rare opportunity for many investors.
Tanzania is working to boost the edible oil industry
It is reported that Tanzania is currently facing a huge loss in production and mainly relies on imports to meet the growing demand for edible oil. Last year, the import of edible oil reached 294 million US dollars.
Last year it was reported that the Tanzanian government was in talks with potential investors and encouraged them to set up edible oil processing plants in the country.
In addition, the country’s Deputy Minister Anthony Mavunde revealed that the government is working with the Food and Agriculture Organization of the United Nations and the United Nations Industrial Development Organization to formulate a development strategy aimed at promoting oilseed production to make up for the deficit caused by the country’s edible oils.
If you want to invest in an edible oil processing plant in Tanzania, you can consult BTMA, and we will give you a detailed introduction.