Tanzania allocates over $190 mln to reduce edible oil imports
Tanzania allocated 500.6 billion shillings ($190 million) to boost edible oil production and reduce its 427,000-tonne deficit. The government will tighten import rules, promote sunflower and palm cultivation, and pursue self-sufficiency through increased investment, improved seeds and modern farming technologies.
The Tanzanian government has allocated more than 500.6 bln Tanzanian shillings (about $190 mln) to expand domestic edible oil production and reduce the country’s edible oil deficit of around 427 thsd tons. The announcement was made by Agriculture Minister Daniel Chongolo during the National Investment Forum on the Edible Oil Value Chain.
According to the minister, Tanzania requires 732.97 thsd tons of edible oil annually, while domestic production currently stands at only 305.9 thsd tons. As a result, the country spends more than $200 mln each year on edible oil imports, which the government aims to replace with increased local production.
To encourage investment in oilseed cultivation, Tanzania will tighten import regulations. Over the next two years, edible oil import permits will be granted only to investors who are also engaged in oilseed farming. After four years, imports will be allowed only to cover the remaining supply gap after domestic production meets most of the country’s demand.
The government believes the policy will help transform Tanzania from a trading-based economy into a production-oriented one. The Ministries of Agriculture, Industry and Trade, and Planning and Investment are jointly implementing the strategy to achieve edible oil self-sufficiency and eventually create an export surplus.
According to the Agricultural Markets Development Trust (AMDT), implementing the 10-year development plan will require more than 1 trillion Tanzanian shillings in public and private investment. The strategy focuses on increasing sunflower and palm oil production through improved seed varieties, modern farming technologies, and better agricultural services to raise productivity.
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Source : Ukr Agro Consult
