Zimbabwe proposes limiting vegetable oil imports and reducing the cost of wheat imports
Pure Oil Industries has proposed restricting Zimbabwe’s finished vegetable oil imports to support domestic producers while removing the wheat import levy to lower milling costs. The company’s strategy aims to boost local processing, reduce edible oil imports and improve competitiveness for regional exports.
One of Zimbabwe’s major edible oil producers, Pure Oil Industries, has proposed restricting imports of finished vegetable oils to shift domestic demand toward locally produced products. The company has also called for the removal of the wheat import levy, which would reduce costs for the milling industry and improve access to raw materials.
Pure Oil Industries operates an integrated oilseed crushing and refining facility in Harare and produces edible oils from soybeans, cottonseed, palm oil, sunflower seed and rapeseed under the ZimGold brand. Its edible oil production capacity exceeds 6.4 thsd tons per month. The company also produces soybean and cottonseed meal for the feed industry.
At the same time, the processor is expanding into the grain sector. Pure Oil Industries has invested $8.5 mln in a new wheat milling plant, bringing its total investment to around $40 mln. Against this backdrop, the company is calling for the wheat import levy to be removed to provide local mills with cheaper raw materials.
The company is therefore proposing different approaches to finished products and raw materials: restricting vegetable oil imports to support domestic production while making wheat imports cheaper to increase utilisation of local processing capacity. Such a policy could reduce Zimbabwe’s demand for imported finished vegetable oils while supporting demand for imported wheat.
The government has not yet announced whether it will adopt the proposed measures. Industry and Commerce Minister Mangaliso Ndlovu, however, said new investment in agro-processing should improve the competitiveness of domestic industry and create opportunities for local producers to expand into regional export markets.
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Source : Ukr Agro Consult
