Palm oil and fractions market in Tanzania

Earlier Report Observations

Tanzania's palm oil market volume grew from 313.2 thousand tons in 2018 to 380.7 thousand tons in 2021, driven largely by rising imports which offset stable domestic production of around 5.5 thousand tons. Government commitment to the sector was underscored in 2019 by the Prime Minister's symbolic planting of an oil palm tree, while ongoing efforts to develop large-scale plantations and processing facilities aimed at long-term industry growth. Regulatory frameworks and quality productivity guidelines issued in 2021 further supported local production standards.

A sharp contraction occurred in 2022, with market volume falling to 228.6 thousand tons as imports dropped by over 150 thousand tons. This period saw the launch of the World Bank-funded PAMOJA project to economically empower rural women, potentially affecting labor availability in farming regions. Concurrently, state-owned companies and local authorities played active roles in supporting domestic production and distribution, which may have encouraged a shift toward local supply amid persistent economic factors like processing costs and credit access.

The market recovered to 268.3 thousand tons in 2023 as import volumes rose again, reaching 314.1 thousand tons in 2024. Entrepreneurial initiatives emerged, such as converting palm oil waste into biogas and alternative charcoal, indicating sector diversification. Ongoing state-led recommendations focused on improving access to processing technologies and financial literacy, while research highlighted palm oil's role in poverty reduction and new segments like biofuels gained attention.

Production palm oil and fractions in Tanzania

In kind, 2017-2020, t

Top producers of palm oil and fractions, 2017-2020

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

Tanzania's palm oil and fractions production saw a two-year increase before declining. In 2019, production reached its peak at 5,600 tonnes, marking a 3.7% increase. However, by 2020, output had fallen to 5,400 tonnes, representing a gradual 3.6% decrease from the previous year.

Annual dynamics of production in Tanzania in kind, 2017-2020, t

Exports palm oil and fractions from Tanzania

Exports in kind, K t

The export market for palm oil and fractions from Tanzania showed significant volatility during this period. In 2018, exports hit their lowest point at just 0.2 thousand tonnes, reflecting a sharp 91.9% decline. By 2020, exports had rebounded dramatically to 0.9 thousand tonnes, representing a substantial 147.1% increase compared to 2019. Overall, export levels fluctuated 12.3 times between the 2017 high and the 2018 low.

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

Between 2017 and 2020, Tanzania's palm oil and fractions exports were primarily directed to three key markets: Angola accounted for 26.8% of exports in kind, Malawi for 26.7%, and Uganda for 12.8%. Together, these three destinations represented 66.3% of Tanzania's total export flows during this period.

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

World map of product's exports from Tanzania in kind, 2017-2020

Exports in value, M $ US

Export values showed considerable fluctuations during the 2017-2020 period. In 2018, export revenue reached its minimum at approximately $0.0 million, marking a dramatic 99.6% decline. The following year saw an extraordinary recovery with an 8,905.6% increase. By 2020, export value stood at $0.9 million, showing a slight 1.6% decrease from 2019. Overall, export volumes varied 253 times between the 2017 high and 2018 low.

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

From 2017 to 2020, Tanzania's palm oil and fractions exports by value were concentrated in three main markets: Malawi accounted for 23.9% of export value, Angola for 21.7%, and the Netherlands for 19.9%. Combined, these three destinations represented 65.6% of Tanzania's total export value during this period.

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

World map of product's exports from Tanzania in value, 2017-2020

Imports palm oil and fractions to Tanzania

Imports in kind, K t

Tanzania's palm oil and fractions imports showed mixed trends between 2017 and 2020. In 2018, imports reached their lowest point at 307.9 thousand tonnes, reflecting an 8.9% decline. The following year saw a significant recovery with imports peaking at 382.0 thousand tonnes, representing a 24.1% increase. By 2020, imports had decreased slightly to 364.3 thousand tonnes, down 4.6% from 2019. Over the entire period, imports grew by 7.8%, equivalent to an average annual growth rate of 2.5%.

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

Between 2017 and 2020, Tanzania's palm oil and fractions imports were overwhelmingly sourced from two countries: Indonesia accounted for 50.7% of imports in kind, while Malaysia contributed 42.8%. Together, these two suppliers represented 93.5% of Tanzania's total import volume, with other partners accounting for the remaining share.

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

World map of product's imports to Tanzania in kind, 2017-2020

Imports in value, M $ US

Tanzania's palm oil and fractions import values declined for the third consecutive year in 2020, reaching $163.1 million. This represented a modest 2.7% decrease compared to 2019. Over the entire 2017-2020 period, import values fell by 35.5%, equivalent to an average annual decline of 13.6%.

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

During the 2017-2020 period, Indonesia and Malaysia dominated Tanzania's palm oil and fractions imports by value, jointly accounting for 96.9% of total import flows. The remaining share was distributed among other markets.

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

World map of product's imports to Tanzania in value, 2017-2020