In recent years, Tanzania’s demand for edible oil has continued to expand. Common edible oils in Tanzania include peanut oil, palm oil, sunflower oil, soybean oil, sesame oil, etc. In view of Tanzania’s market demand, climate and environment, relevant investment companies can focus on investment opportunities in Tanzania’s agricultural industrial parks that focus on oil palm planting and processing.
1. Tanzania has the potential to develop oil palm plantation and processing
The main oil palm planting areas in Tanzania include Kigoma, Kyela District and Tanga. Due to the suitable soil and climate, the Kigoma area undertakes more than 80% of Tanzania’s palm oil production tasks. The production potential of the Kigoma area may enable Tanzania became one of the world’s largest producers and exporters of palm oil.
2. Tanzania is committed to the development of oil palm planting and processing
The Prime Minister of Tanzania said that in order to reduce the import of cooking oil, the Tanzanian government has allocated 4.3 million US dollars to promote local oil palm plantation, so as to save millions of US dollars in foreign exchange every year. On the other hand, vigorously develop projects on the value chain and market system of palm oil in Tanzania. At the same time, the Tanzanian government has increased the import tariffs on palm oil, semi-finished and finished palm oil in order to restrict palm oil imports and increase domestic production.
3. Tanzania edible oil faces a huge demand gap
According to the statistics of the Tanzania Investment Center, the annual demand for edible oil in Tanzania is 500,000 tons, while the actual supply is only 180,000 tons, facing an annual shortage of 320,000 tons of edible oil. It is estimated that in the next five years, the annual demand for edible oil in Tanzania will increase to 500,000 tons. In order to alleviate the contradiction between domestic supply and demand, Tanzania mainly relies on imports to meet the demand for edible oil.
4. Tanzania encourages foreign capital to enter the agricultural sector
The most favorable areas for the Tanzanian government to attract foreign investment include agriculture and agricultural product processing, export-oriented industries, manufacturing, mining, infrastructure construction and energy investment, tourism and related industries. The Tanzanian government encourages potential investors to enter the palm oil processing sector. Relying on Tanzania’s market demand and policy guidance, relevant investment companies can investigate the feasibility of investing in Tanzania’s agricultural industrial parks that focus on oil palm planting and processing, focusing on oil palm planting and development mainly on edible oil, primary processing of palm oil Refining, branded oil packaging and other industries, to create a new comprehensive demonstration platform for deepening cooperation in the field of agricultural product processing in Tanzania. In the future, more industrial chains will continue to extend to intensive processing.