Tanzania’s Sunflower Transformation: A National Push to End Costly Edible Oil Imports

With a $250 million annual import bill, the East African nation is mobilising farmers, processors, and strategic policy to achieve self-sufficiency and become a regional powerhouse.

Dar es Salaam, Tanzania – Tanzania is embarking on an ambitious agricultural transformation, aiming to eliminate its dependency on imported edible oil and establish itself as a key regional exporter. This national endeavor, led by the Ministry of Agriculture and championed by the newly expanded Agricultural Growth Corridor of Tanzania (AGCOT), is centred on unlocking the vast potential of oilseed crops, with a primary focus on sunflowers.

The nation faces a critical edible oil deficit. With an annual demand of 650,000 metric tons, local production currently meets only 396,335 metric tons, creating a shortfall that forces Tanzania to import 60% of its cooking oil at a staggering annual cost of over $250 million. The Ministry’s new strategy aims to decisively reverse this trend, targeting a significant increase in domestic production to meet and exceed national demand by 2026.

AGCOT’s Renewed Mandate

Spearheading this strategic shift is AGCOT, the successor to the Southern Agricultural Growth Corridor of Tanzania (SAGCOT). Building on a rich history of developing the sector—including co-drafting the first National Sunflower Development Strategy (NSDS) from 2014-2020—AGCOT now operates with a national mandate across four key agricultural corridors.

The initiative gained fresh momentum last Friday, August 22, 2025, during a pivotal online meeting to update the NSDS and craft a comprehensive Edible Oil Strategy. AGCOT played a central coordinating role, with representatives guiding the discussion among more than 60 stakeholders from across the value chain.

“Tanzania has no reason to import edible oil,” declared Prudence Lugengo of AGCOT, articulating the organization’s commitment. “We have immense potential not only to produce for ourselves but also to export to ready markets in SADC, East Africa, and Central Africa.”

A Strategy Built on Potential and Policy

The strategy’s foundation lies in the multifaceted potential of oilseeds. Sunflowers, in particular, are seen as a powerful tool for economic transformation, capable of significantly increasing smallholder farmer incomes and creating vital employment opportunities for youth.

To bolster this growth, the Ministry of Agriculture is rolling out substantial support measures. These include the subsidized distribution of 2,150 tons of high-quality sunflower seeds, 10 million oil palm seedlings, and 40 tons of sesame seeds. This is coupled with strengthened research programs for all major oilseed crops and extensive training for farmers and extension officers nationwide.

These efforts are supported by a favorable policy environment. Crucial past reforms, such as VAT exemptions on agricultural processing equipment and a 25% import tariff on refined palm oil, have already improved the competitiveness of local producers. Stakeholders are now advocating for enhanced legal and tax frameworks to further protect and nurture the burgeoning domestic industry.

Overcoming Hurdles on the Path to Self-Sufficiency

Despite the clear potential, the path is not without obstacles. Stakeholders acknowledge significant challenges, including a scarcity of raw materials for processors and stiff competition from cheaper imports. Many local factories lack advanced refining technologies like solvent extraction, limiting their efficiency. Furthermore, the impacts of climate change pose a persistent threat to agricultural productivity, while some farmers remain hesitant to adopt modern, high-yield seeds.

In response, the developing national strategy emphasizes a suite of solutions:

• Securing the Supply Chain: Contract farming is being championed as a key model to guarantee a consistent supply of raw materials for processors and provide farmers with a reliable market.
• Technological Upgrades: The strategy encourages investment in advanced processing technologies to improve the quality and competitiveness of local oils, with pioneering private sector investors already implementing solvent extraction plants in regions like Dodoma.
• Strategic Crop Diversification: While sunflowers currently account for about 90% of local edible oil, the strategy advocates for a dual focus. It prioritizes high-potential crops like sunflower and oil palm, drawing inspiration from global leaders like Indonesia and Malaysia. Simultaneously, it calls for supporting a range of oil crops—including groundnuts, soy, and coconut—based on regional ecological advantages.
• Building Climate Resilience: Promoting drought-resistant seeds, conservation agriculture, and educating farmers on climate adaptation are critical components to ensure the sector’s long-term sustainability.

By integrating these concerted efforts, Tanzania is poised to transform its edible oil sector. The nation is not just planting seeds in the ground; it is cultivating a future of economic independence, food sovereignty, and regional leadership.

Below are some quotable remarks from contributors at a stakeholder meeting on Tanzania’s edible oil sector, where industry leaders, government representatives, farmers, and private sector actors came together to discuss solutions to one of the nation’s most pressing challenges: the edible oil deficit.

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Monica – Tanzania Agricultural Input Supply Partnership (TAISP)

“Our country and government are in a strategy to increase production and ensure the increase of edible oil in the country.”

“The Ministry’s goal is to increase edible oil production in the country, which currently stands at 396,335 tons compared to the national demand of 650,000 tons per year, causing a deficit of 253,697 tons for the country.”

“We decided to sit with stakeholders and discuss how we can have a strategy that encompasses the entire oil industry here in the country, i.e., sunflower, oil palm, groundnuts, sesame, etc.”

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Pendo – Cereal and Other Produce Regulatory Authority (COPRA)

“Oilseed crops are one of the food crops with very high demand in the country, and a lot of foreign currency has been used to import that deficit of over 200,000 tons, which is a huge cost.”

“For sunflower, we see contract farming as a good thing that we can use to ensure sufficient production and also guarantee markets for farmers.”

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Prudence Lugengo – Agricultural Growth Corridors of Tanzania (AGCOT)

“SAGCOT was part and parcel of drafting and implementing the first National Sunflower Development Strategy.”

“Our country has no reason to import edible oil from abroad because we have the potential to produce and export, and the export market exists.”

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Frank Goyayi – Private Sector (Dodoma)

“For the private sector… the challenge is the seeds, and prices are going up.”

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Castus Paskal – Agribusiness Development Manager, TCCIA

“We believe we are now going to find a solution to this oil challenge in our country.”

“When we think about this, we must also consider climate change and how we can get seeds that are compatible with or resistant to climate change.”

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Bahati Majaliwa Yusuph – Ministry of Agriculture, Crop Development Department

“To increase raw material production… there is also a need to make efforts to increase processing standards in our factories to increase competition with imported oils.”

“Many factory owners have discussed that some taxes create problems for processors… when you remove VAT on imported food oil… it enters the country at a cheap cost, leading to significant competition and undermining the efforts of local oilseed producers.”

“To focus, at least let’s go with those two crops: sunflower and oil palm, because these crops can solve our oil challenge in the country and enable us to sell worldwide.”

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Henry Mzirai – Executive Director, CSMDI

“Climate change is now something unavoidable and something that has been greatly affecting the agricultural sector.”

“Now we must live with these climate changes because we won’t be able to eliminate them today. How we can live with them is by having methods that are in line with the current situation.”

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Kissa Godfrey Chawe – Assistant Director, Crop Development, Ministry of Agriculture

“From the ministry’s side, our main goals are to strengthen seed research for oilseed crops including sesame, sunflower, coconut, oil palm, groundnuts, and soybean.”

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Mercy Masasi – Assistant Chairperson, Association of Small-Scale Sunflower Oil Mills (Kongwa)

“It is very sad to see that Tanzania, with all that potential, still imports oil from abroad, and the big problem is that the entire task of producing these oilseeds has been left to farmers who, for better or worse, are smallholders.”

“It is sad to see that we have not protected them enough to the extent that even factories have started closing during the season, and it’s not true that there is little sunflower, but we have allowed large factories owned by foreigners to come with power because they don’t compete in this Tanzanian market…”

“Our country is among the few blessed countries that can produce all these crops that can make edible oil: sunflower, groundnuts, soybeans, coconut – all thrive in Tanzania.”

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✍️ Closing Note

The meeting underscored one clear message: Tanzania has both the potential and the resources to bridge its edible oil deficit. What remains is aligning policy, private sector investment, and farmer support to unlock this opportunity for national prosperity.