Peter & Burg Invests $130M in Edible Oil Factory in Tanzania

As part of its policy to reduce reliance on imports for its #FoodSecurity, Tanzania is announcing the implementation of a new edible oil factory by Hungarian firm Peter & Burg Company Limited. The company plans to invest USD 130 million to process mainly sunflower into cooking oil.

To that effect, an agreement has been reached on 2 December 2024 between the Tanganyika Farmers Association (TFA) et the Mkulima Coops, a subsidiary of Peter & Burg. With the offtake money, TFA plans to build a seed production facility and an organic fertilizer plant to support the sunflower industry and the sustainable Local Value Addition (#LVA) of sunflower.

Sunflower is one of the main crops grown in Tanzania. During financial year 2022-2023, Tanzania produced 480,000 tonnes of sunflower seeds. Construction of the oil plant is scheduled to start in January 2025.

It is worth recalling that in June 2024, Chinese company Mainland Group also announced an #FDI of USD 28 million to build a similar edible oil factory in Dodoma, which is expected to enter into production soon.