Local Cooking Oil Industry Under Threat from Smuggled Products
Dar es Salaam – Local cooking oil manufacturers have issued a stark warning that smuggled oil flooding the Tanzanian market is severely undermining domestic production, eroding market share for locally produced brands, and threatening thousands of jobs across the sector.
Industry stakeholders report that illegally imported cooking oil, which circumvents taxes, quality inspections, and regulatory oversight, is being sold at significantly lower prices. This has created an unfair competitive environment, making it increasingly challenging for compliant manufacturers to sustain viable operations.
These concerns emerged during a visit by Tanzania Revenue Authority (TRA) Commissioner General Yusuph Juma Mwenda to several cooking oil manufacturing facilities in Dar es Salaam, part of intensified government efforts to combat smuggling.
During the inspection, Azania Company’s Director of Administration, Salehe Afif, explained that smuggled oil has drastically reduced demand for locally manufactured brands, directly impacting sales volumes and production capacity.
"Smuggled cooking oil is crippling local industries because we cannot compete with cheap products that do not pay taxes," Afif stated, calling on TRA to maintain and strengthen enforcement measures.
He emphasized that manufacturing facilities employ substantial workforces and require stable production and sales to cover operational expenses, including wages—capabilities increasingly compromised by illicit market competition.
Afif further noted that factories bear numerous costs including salaries, utilities, environmental and safety compliance, transportation, and equipment maintenance, all contributing to higher production expenses.
"These costs must be recognized when evaluating factories’ economic contributions. We generate substantial tax revenues and support thousands of households through employment," he said.
Gerald Lyimo, Head of Human Resources and Administration at Wilmar Factory, echoed similar concerns, stating that the prevalence of smuggled oil has weakened demand for locally manufactured products, creating operational and employment pressures.
Prominent businessman and East Coast Oils and Fats factory owner Gulam Dewji warned that smuggling destroys businesses and hampers industrial development, while commending TRA’s ongoing enforcement initiatives.
He emphasized the need for collective action, stating that combating smuggling requires close coordination between government authorities, manufacturers, and the general public.
In response, Commissioner General Mwenda confirmed that TRA is collaborating with security and defense agencies to curb smuggling activities and protect both local industries and consumers.
He announced plans to establish a joint task force comprising cooking oil manufacturers, importers, and distributors to develop sustainable solutions to the smuggling crisis.
"Every product imported into the country must undergo quality supervision with relevant institutions. Oil entering illegally bypasses these controls and poses serious health risks to consumers—this is food," Mwenda emphasized.
The Commissioner General stated that TRA will continue conducting regular patrols and inspections at customs points to prevent smuggled goods from entering the market, noting that legitimate oil imports are regulated through proper channels to meet national demand.
Mwenda reiterated that smuggling deprives the government of essential revenue, undermines fair market competition, and exposes consumers to health hazards. He urged citizens to report suspected illicit goods as enforcement operations intensify nationwide.
