By Radegunda Kessy, Atupokile Mwakatwila, Justus Ochieng, Martin Majambele, Anthony Bujiku & Jean Claude Rubyogo
Background Information
Tanzania faces a 320,000-ton gap in edible oil production, with demand set to rise from 570,000 tons annually to 700,000 tons by 2030. Currently, the country produces only 180,000 tons from crops like sunflower, oil palm, and soybeans, relying on imports to meet the shortfall. Challenges such as low yields, outdated varieties, climate variability, and poor practices hinder local production. However, investment in improved seed varieties, climate-resilient farming, modern technologies, and processing infrastructure, as seen with Ntemisambo Company Limited, a small local enterprise in Katavi Region’s Mpanda District, offers opportunities to reduce imports and meet growing demand.
Founded in 2019, Ntemisambo specializes in trading and processing cereals like rice, sunflower, and groundnuts. Led by the company’s Director Sambo Luhende, Ntemisambo focuses on purchasing, processing, and selling these products, serving local markets in Mpanda and surrounding areas like Tabora and Rukwa. By sourcing grains from local farmers, Ntemisambo supports regional agriculture, contributes to economic growth, and is well-positioned to address Tanzania’s edible oil production challenges while improving farmers’ livelihoods.
Challenges and strategies in sunflower oil production
Ntemisambo Company Limited sees sunflower oil processing as key but struggles with securing a consistent supply of raw sunflower seeds, limiting its ability to meet growing demand in Katavi and neighboring regions. To address this, the company sources processed sunflower oil from other areas and has diversified into groundnut oil production, taking advantage of the abundant groundnut supply in Mpanda and surrounding districts in Katavi. In the 2023/2024 and 2024/2025 farming seasons, Ntemisambo sourced 15 tons and 113.5 tons of groundnuts, producing oil sold at the same price as sunflower oil in local markets. Consumer acceptance of groundnut oil was strong, but Sambo faced challenges with grain quality, as many farmers lacked knowledge of improved seed varieties and practices. The use of low-quality seeds led to poor productivity and susceptibility to disease, affecting grain quality.
Exposure to new groundnuts varieties through ACCELERATE Project
To address the low seed quality challenge, the ACCELERATE Project, led by The Alliance of Bioversity and CIAT through PABRA, partnered with the Tanzania Agriculture Research Institute (TARI), Tanzania Official Seed Certification Institute (TOSCI), and International Maize and Wheat Improvement Center (CIMMYT) to promote the adoption of high-performing seed varieties using Demand-Led Seed Systems (DLSS). Earlier this year, the project team visited Ntemisambo to introduce improved groundnut varieties for oil processing. The company recognized the need to invest in seed multiplication to ensure better access for farmers, leading to higher-quality raw materials, improved oil production, and better market prices.
In August 2024, the ACCELERATE Project held a “Pause and Reflect Meeting” with project co-implementers and DLSS champions. Ntemisambo’s Director attended and learned how to incorporate DLSS into their business to ensure a steady supply of high-quality grain. Following the meeting, Ntemisambo recognized the need to invest in quality seed provision for farmers and requested support to build the capacity of Quality Declared Seed (QDS) farmers.

Sambo Luhende, sharing his experience with participants during a meeting in August 2024 – Photo by Martin Majambele
Enhanced support to build strong seed systems
Developing strong seed systems is crucial for ensuring access to high-quality seeds. Through its collaboration with Ntemisambo, 20 farmers, including five women and two extension officers, received training in producing Quality Declared Seeds (QDS) for groundnuts. The training covered agronomic practices, seed policy, and certification procedures. Farmers were excited to learn about improved seed varieties that could address challenges like climate change and low productivity. “We didn’t know improved groundnut seeds existed. I’m happy to be part of this training,” said Luhende.
Through Ntemisambo, farmers have also been connected to key seed sources, including TARI Naliendele, ALSEM Seed Company, and DASPA. For the current season, 510 kg of groundnut seeds (varieties: Naliendele 2016, Tanzanut 2016, Nachi 2015, and Narinut 2015) have been secured for demonstration plots and seed multiplication. Ntemisambo has contracted 14 qualified seed growers and is prepared to provide necessary inputs on credit. About 25.5 acres are dedicated to seed production, and after harvest, the seeds will be purchased and distributed to farmers for grain production, increasing yields and oil content. Strengthening these seed systems will boost farmers’ livelihoods and ensure a more reliable supply chain for Ntemisambo’s processing operations.
Investing in modern machinery for groundnut oil processing
Ntemisambo plans to invest in modern oil processing machinery to enhance efficiency and oil quality. By utilizing high-oil-content groundnut varieties from the ACCELERATE project, the company aims to optimize production. Ntemisambo will upgrade its current 2-ton/day capacity machines to advanced 5-ton/day equipment, increasing oil extraction rates and meeting growing demand in local and international markets. This investment in state-of-the-art technology will help scale operations, satisfy demand, and access more profitable markets with superior-quality products.
Strengthening Multi-Stakeholder Partnerships (MSP)
Moving forward, Ntemisambo Company plans to expand groundnut production from 113.5 tons to 5,000 tons in the next five years, requiring strong collaboration across the value chain. The company’s strategy involves leading a Multi-Stakeholder Platform (MSP), working with research institutions to distribute disease-resistant, high-yielding varieties, and partnering with input providers to ensure farmers have access to quality seeds, fertilizers, and pesticides. Leveraging existing partnerships, such as with the Agriculture Council of Tanzania (ACT), Ntemisambo will train farmers in modern practices, disease management, and post-harvest handling. Additionally, demonstration plots and a WhatsApp group will facilitate practical learning and real-time communication. Through this cohesive MSP approach, Ntemisambo aims to lead the groundnut value chain, ensuring long-term success and contributing to farmers’ livelihoods in Mpanda and beyond.

Farmers under Ntemisambo Company network in Mpanda receiving the first batch of improved seed for groundnuts from TARI Naliendele in Mtwara – Photo by Sambo Luhende
Conclusion
While sunflower oil currently dominates the Tanzanian market, there is growing potential for groundnut oil as consumer preferences evolve. The success of pilot sales indicates a positive market reception. By positioning itself as a key player in this emerging segment, Ntemisambo Company can capture market share and diversify its product offerings. Marketing campaigns highlighting the unique flavor and health benefits of groundnut oil could further boost consumer interest. These opportunities will enable Ntemisambo to capitalize on the rising demand for edible oil in Tanzania, support local farmers, and strengthen the agricultural sector in the Katavi region.
Reference
HAPA.2022. Fiscal Reform Options and their Effects on the Edible Oil Sector in Tanzania: A Cost Benefit Analysis. The Hub for Agricultural Policy Action (HAPA), AGRA, Nairobi, Kenya.
Reuben, F.M. and Meliyo, J. L, (2022). Unlocking Opportunities in Edible Oil Crop Production and Market Dynamics to Accelerate Agricultural Investment in Kagera Region. International Journal of Environment Agriculture and Biotechnology. Vol-7, Issue-3; May-June 2022.