Tanzania to establish US$130M sunflower processing plant in Arusha
TANZANIA – The Tanganyika Farmers Association (TFA) has partnered with Mkulima Coops Limited, a subsidiary of Hungary-based Peter & Burg Ltd, to construct a sunflower processing plant for edible oil production.
The US$130 million deal, signed on December 2, 2024, in Arusha, is scheduled for construction beginning January 2025.
While specific details about the processing capacity and plant location remain undisclosed, Justin Shirima, director of the TFA, revealed that the plant is expected to create jobs, enhance the value chain, and support smallholder farmers by providing a consistent market for their produce.
According to the Ministry of Agriculture, Tanzania produced over 480,000 tonnes of sunflower seeds during the 2022/2023 season, making it the country’s leading oilseed crop.
The TFA emphasized that this investment aligns with ongoing efforts to reduce Tanzania’s edible oil imports.
In July 2024, the Chinese agribusiness group Mainland announced plans to complete the construction of a new sunflower oil manufacturing plant in Dodoma.
Xie Weijiang, China’s Yueyang City Mayor, and 18 other delegates toured the construction site and confirmed that the factory is expected to start operations in December.
Mobilizing a total investment of US$28 million, the unit will be able to process between 30,000 and 35,000 tons of sunflower seeds per year, depending on the availability of local supply.
“The factory is very modern and will produce high-quality oil from sunflower seeds,” said the mayor.
According to information relayed by local news, the project also includes the installation of four silos with a combined storage capacity of 30,000 tons of oilseeds.
The plant plans to house a production line for animal feed derived from sunflower oilcake.
In Tanzania, Oilseed cultivation occupies an area of more than 520,000 hectares, mainly in Singida, Rukwa, Iringa, Dodoma, and Njombe, with sunflower seed production estimated at 500,000 tonnes per year.
However, official data indicates that Tanzania relies on imports for 64% of its edible oil needs, estimated at 500,000 tonnes annually.
Last year, the Tanzania National Service (JKT) embarked on a robust project to reduce imports and boost the production of sunflower and palm oil to support the government in addressing the country’s edible oil shortage, which costs the country TSH 470bn (US$201M) annually.
In addition, the Tanzanian government has introduced measures to support the sunflower oil industry, including VAT exemptions on processing equipment and incentives for large-scale farming.
According to county data, Tanzania’s edible oil demand is projected to reach 700,000 tonnes annually by 2030, with sunflower oil identified as a critical contributor to meeting this demand.
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