INVESTMENT GUIDE

Support
available
Challenges/
Risk and
Mitigation
• Existing support for improvement of education by the regional and district authorities;
• Support by development partners;
• Firms may support their workforce to upgrade their skills.
• Limited ability to pay for expensive courses;
• Curriculum development, registration, and accreditation processes take a long time;
• Sustaining standards and certifications.
7. Vegetable oil production factories and refineries
Overview of the Opportunity
Key features
• Establishing vegetable oil production mills and refineries in Bariadi Rural and Itilima
from sunflower and cotton oil seeds;
• Production of biodiesel from cotton seeds oil.
Key
investment
rationale
Support
available
Challenges/
Risk and
Mitigation
• Simiyu produces substantial volumes of groundnuts and sunflower seeds;
• Profitable business since Tanzania has a supply gap and imports more than 200,000
tons of vegetable oil annually from far east;
• Inefficient crushing and filtering processes used;
• Limited oil refining and refineries;
• Remaining cake is in high demand for animal feed (USD 0.3-0.4/kg).
• SIDO strongly involved in capacity building of producers and in construction of
equipment;
• There is a growing number of entrepreneurial processors who are investing in small oil
mills, that can crush more than 100 bags per day and others producing efficient mills
• TIRDO supporting research and development and development of technological
processes;
• There are several associations, NGOs and civil society organizations supporting
vegetable oil production. These include Tanzanian Edible Oilseed Association (TEOSA),
Agricultural Marketing Cooperative Organizations (AMCOs), UMAMBE, oil miller’s
association in the Central Corridor of Tanzania (CEZOSOPA), and Rural Livelihood
Development Company (RLDC).
• Consistent supply of quality oil seeds;
• Power outages;
• Efficient equipment and technological processes from imports are cheaper;
• Substances used in refining are from import only;
• Marketing infrastructure under developed.
20 | SIMIYU REGION INVESTMENT GUIDE