Investors Target Tanzania’s Youth, Women

• In Tanzania’s edible oil sector, billions in untapped value await youth and women in the booming sunflower industry as the country pushes for self-sufficiency and exports.
• From $130M Hungarian plants to Chinese factories in the countryside, investors are betting big on Tanzania’s sunflower revolution, will locals reap the rewards?
• Tanzania imports $250M in oils yearly, but with new processing giants rising, could empowered young farmers turn deficit into dominance?

Tanzania’s sunflower industry is emerging as a beacon of opportunity in East Africa’s agribusiness landscape, with major investments poised to unlock billions in value while empowering the nation’s youth and women. As global demand for edible oils surges, the country—long a net importer—stands on the cusp of transformative growth, driven by strategic policy shifts and high-profile foreign partnerships.

Despite abundant arable land and favourable climates, Tanzania currently produces only about 396,000 metric tonnes of edible oils annually against a domestic demand exceeding 650,000 tonnes. This shortfall forces imports worth over $250 million each year, draining precious foreign exchange. Yet, the sunflower subsector holds immense promise: it already supplies around 30 per cent of national needs, and targeted expansion could reverse the import dependency.

The government’s national strategy for edible oil self-sufficiency places sunflower at its core, emphasising empowerment of youth and women farmers to ensure reliable raw material supply.

As Senior Trade Officer at the Ministry of Industry and Trade, Mr Richard Pweleza, stated at a recent stakeholders’ workshop organised by the Agriculture Markets Development Trust (AMDT) in Morogoro: “We can do it, we have the potential… greater emphasis will be placed on empowering youth and women farmers to boost sunflower production.”

Pweleza highlighted the ripple effects: consistent supply chains for domestic processors, reduced import bills, and enhanced value addition.

“By empowering youth and women we will ensure a consistent flow of raw materials to our domestic cooking oil factories all year long… increased production will also reduce reliance on imports which cost the country a huge sum of foreign exchange,” he explained. A forthcoming sunflower development policy, currently in formulation, underscores inter-ministerial collaboration to create an enabling environment.

Global investors step in Tanzania’s sunflower sector

Investor confidence is translating rhetoric into reality. In late 2024, the Tanganyika Farmers Association (TFA) signed a $130 million partnership with Hungary-based Peter & Burg Ltd’s subsidiary, Mkulima Coops Limited, to build a state-of-the-art sunflower processing plant in Arusha. Operations commenced in 2025, promising a substantial boost to local refining capacity, as noted by TFA Director Justin Shirima.

Hot on its heels, Chinese agribusiness giant Mainland announced a $28 million facility in Dodoma, with an annual processing capacity of 30,000–35,000 tonnes of sunflower seeds. The project includes four silos totalling 30,000 tonnes of storage, addressing bottlenecks in post-harvest handling. Mayor Xie Weijiang of Yueyang City, leading a delegation in late 2025, confirmed the mobilisation of funds, signalling strong bilateral commitment.

These ventures not only bridge production gaps but also create upstream opportunities for smallholders, particularly youth and women, through outgrower schemes, training, and market linkages. With sunflower yields responsive to improved seeds and agronomic practices, empowered farmers could capture a significant share of the expanding value chain, from seed supply to refined oil exports.

For business leaders and investors eyeing Africa’s growth markets, Tanzania’s sunflower sector offers compelling entry points: scalable processing, export potential to regional blocs such as EAC and SADC, and alignment with ESG priorities through inclusive empowerment. Policymakers, meanwhile, have a blueprint to foster sustainable trade balances.

As these investments mature, Tanzania could evolve from importer to regional supplier, turning sunlight into economic gold, and delivering billions in shared prosperity for its youthful demographic dividend.

Also Read: Why Global Capital Is Moving to Africa’s Urban Property Markets

Inside Tanzania’s national edible oil strategy

According to the World Bank, Tanzania ranks 16th in sunflower oil production across the world and is only second to South Africa on the continent.

Previously, Tanzania’s sunflower industry operated under the national edible oil strategy of 1996-2020, which the official said has since become outdated. The key objectives now include job creation, economic transformation, improving the balance of payments, promoting environmental conservation and enhancing the capacity of emerging industries, he detailed.

Notably, up to 2018, Tanzania ranked second across Africa in sunflower production falling behind South Africa. To increase production and develop the industry, the sunflower development strategy is now identified as a priority area in the just launched National Development Vision 2050.

The national sunflower industry development strategy will among other things promoted access to affordable financing for entrepreneurs looking to establish sunflower oil processing plants. It also prioritizes access to high-quality sunflower seeds, use of improved seed varieties that have higher oil yields, and enhancing both farm-level efficiency and developing the broader agribusiness value chain.

“This will not only support food security and income generation but also serve to strengthen Tanzania’s position in the regional edible oil markets,” commented the Head of Operations at AMDT, Mr. Godwin Mende.

With increased availability of quality inputs, farmers will be able to increase productivity, value addition players will strengthen business sustainability, all of which will help counter the current $250 million annual import bill of edible oils.

“Mobilising farmers, processors, and enforcing the strategic policy will help us achieve self-sufficiency and even become a net exporter,” Mende projected.

The edible oils national strategy looks to develop the Agricultural Growth Corridor of Tanzania (AGCOT), the successor to the Southern Agricultural Growth Corridor of Tanzania (SAGCOT). Under the National Sunflower Development Strategy (NSDS), AGCOT has mandate to develop sunflower production and value addition across several agricultural corridors.

“There is really no reason for Tanzania to import edible oil…we have the potential not only to produce for ourselves but also to export across SADC, East Africa, and Central Africa,” notes Prudence Lugengo of AGCOT.

The new strategy looks to subsidize distribution of some 2,150 tonnes of high-quality sunflower seeds, 10 million oil palm seedlings, and 40 tonnes of sesame seeds; “This coupled with strengthing research programs for all major oilseed crops and extensive training for farmers and extension officers nationwide, we can be sure we will meet our net export goals,” Legengo added.

He also cited that the strategy is backed by favourable policy like VAT exemption on agricultural processing equipment and a 25 per cent import tariff on refined palm oil. “These provisions will greatly improve the competitiveness of local producers…we are working with various stakeholders to advocate for enhanced legal and tax frameworks that will further protect and nurture the burgeoning domestic industry,” he said.

However, there are challenges, he admitted, these include a scarcity of raw materials for processors, stiff competition from cheaper imports, and the lack of advanced refining technologies. Then you also have the prevailing impacts of climate change and reluctance of farmers to adopt modern, high-yield seeds.

To overcome the challenges, the government is promoting Contract Farming as a key model to guarantee a consistent supply of raw materials for processors. The government is also investing in advanced processing technologies particularly the set up of solvent extraction plants.

Notably, the new strategy acknowledges that while sunflowers account for about 90 percent of local edible oil, there is need to complement it with high-potential crops like palm oil, groundnuts, and soy.

The strategy also promoted drought resistant seeds, conservation agriculture, and places emphasis on educating farmers on climate adaptation techniques as the basis to long-term sustainability.

“We are not just planting seeds in the ground but rather, we are cultivating a future of economic independence, food sovereignty, and regional leadership,” Legengo summed up.

Furthermore, he cited ongoing interventions like the Youth Entrepreneurship for the Future of Food and Agriculture(YEFFA) project, that is designed to empower youth participation in the edible oil sector, he concluded.