Palm oil and fractions market in Sub-Saharan Africa

Earlier Report Observations

The palm oil market in Sub-Saharan Africa saw significant volume fluctuations from 2018 to 2023. Initial market size was supported by government-backed expansion of oil palm plantations and steady industrial use in applications like lubricants, favored for their lower carbon dioxide emissions. However, the emergence of sustainability concerns began influencing market dynamics, contributing to a contraction in 2019.

Market recovery in 2020 was driven by growing health awareness increasing demand for derivatives and the expanding use of palm oil in renewable fuels for transport and power. Subsequent declines in 2021 and 2022 coincided with the impending EU Deforestation Regulation, which raised compliance costs and affected import flows. A strong rebound in 2023 was fueled by rising demand for refined palm oil products and strategic targeting of industrial applications by major producers like Malaysia.

In 2024, sustainability and traceability remained central, with increased adoption of RSPO certification and policy shifts in producing countries affecting costs. Major companies such as Cargill and Wilmar International influenced trends through investments, while diversified demand from food preservation to biofuels continued to shape the market.

Production palm oil and fractions in Sub-Saharan Africa

In kind, 2017-2020, K t

Top producers of palm oil and fractions, 2017-2020

World map of production of palm oil and fractions, 2017-2020

In Sub-Saharan Africa, palm oil and fractions production reached 3 229 thousand tonnes in 2020, marking a 3.1% increase from 2019. However, looking at the broader period from 2017 to 2020, production actually declined by 3.6%, averaging an annual decrease of 1.2%. The lowest production level was recorded in 2019 at 3 132 thousand tonnes, while the peak occurred in 2018 with 3 452 thousand tonnes. The most significant drop happened in 2019, when production fell by 9.3%, whereas the largest gain was in 2018 with a 3.1% rise.

Annual dynamics of production in Sub-Saharan Africa in kind, 2017-2020, K t

In value, 2017-2020, M $ US

Following two years of decline, palm oil and fractions production in Sub-Saharan Africa rebounded in value terms. In 2020, the output was valued at 4 721 million US dollars, up 4.9% from the previous year. Despite this recent uptick, production value decreased by 24.3% over the 2017-2020 period, translating to an average annual decline of 8.9%. The lowest value was recorded in 2019 at 4 502 million US dollars, which also saw the steepest fall of 26.0%.

Annual dynamics of production in Sub-Saharan Africa in value, 2017-2020, M $ US

Exports palm oil and fractions from Sub-Saharan Africa

Exports in kind, K t

Sub-Saharan Africa's palm oil and fractions exports have grown for the third year in a row. In 2020, export volumes reached 488 thousand tonnes, a 7.7% increase from 2019. Over the four-year span from 2017 to 2020, exports surged by 94.3%, averaging an impressive annual growth rate of 24.8%.

Annual dynamics of product's exports from Sub-Saharan Africa in kind, 2017-2020, K t

From 2017 to 2020, the Netherlands and Spain each accounted for 1.5% of Sub-Saharan Africa's palm oil and fractions exports by volume, while Italy represented 0.8%. Together, these three countries made up 3.9% of the total export flows during this period.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Sub-Saharan Africa in kind, 2017-2020

Exports in value, M $ US

Cross-border shipments of palm oil and fractions from Sub-Saharan Africa have increased in value for the third consecutive year. In 2020, exports were valued at 714 million US dollars, rising 9.5% from the previous year. Between 2017 and 2020, export value grew by 52.5%, with an average annual increase of 15.1%.

Annual dynamics of product's exports from Sub-Saharan Africa in value, 2017-2020, M $ US

During the 2017-2020 period, the Netherlands, Spain, and Italy were the leading destinations for Sub-Saharan Africa's palm oil and fractions exports by value. The Netherlands held a 1.6% share, Spain 1.1%, and Italy 0.6%, collectively accounting for 3.3% of total export value.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Sub-Saharan Africa in value, 2017-2020

Imports palm oil and fractions to Sub-Saharan Africa

Imports in kind, K t

In 2020, Sub-Saharan Africa imported 5 647 thousand tonnes of palm oil and fractions, a substantial 16.0% increase from 2019. Over the 2017-2020 timeframe, imports grew by 21.4%, averaging an annual rise of 6.7%. The only decline in this period occurred in 2019, with a modest drop of 1.7%.

Annual dynamics of product's imports to Sub-Saharan Africa in kind, 2017-2020, K t

From 2017 to 2020, Indonesia and Malaysia dominated Sub-Saharan Africa's palm oil and fractions imports by volume, with other countries making up the remainder of the import structure.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Sub-Saharan Africa in kind, 2017-2020

Imports in value, M $ US

Sub-Saharan Africa's palm oil and fractions imports in value terms reached 4 113 million US dollars in 2020, a significant 29.5% jump from 2019. Over the 2017-2020 period, import value increased by 12.2%, with an average annual growth rate of 3.9%. The lowest value was recorded in 2019 at 3 177 million US dollars, which also saw the largest decline of 15.7%.

Annual dynamics of product's imports to Sub-Saharan Africa in value, 2017-2020, M $ US

Between 2017 and 2020, Malaysia and Indonesia were the primary suppliers of palm oil and fractions to Sub-Saharan Africa in value terms, together accounting for 84.3% of total imports. The remaining share was distributed among various other countries.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Sub-Saharan Africa in value, 2017-2020