Zambia losing $16m annually from illegal edible oil imports

ZAMBIA is losing over of US$16 million every year from illegal importation of edible oils and if this is not stopped, the local industry risks folding up, the Zambia National Farmers Union (ZNFU) has warned.

ZNFU president Jervis Zimba said yesterday stakeholders who met at ZNFU offices in Lusaka on Friday demanded that the scourge must be stopped because it was hurting the local oilseed sector.

Mr. Zimba said stakeholders disclosed that over 50, 000 metric tonnes of edible oils were smuggled into Zambia every year while little had been done to rectify the situation.

He added that this development has had a telling effect on the farmers as they were losing a market for their produce. He said the stakeholders attributed rampant smuggling to the reckless issuance of import permits for edible oils without regard to the effect of making such un-researched and wholesale decisions on the local industry.

“The Zambian Government is losing in excess of US$16 million every year through the illegal importation of edible oils and this has to be stopped.

Oilseed stakeholders are also concerned that issuance of import permits for edible oils are being issued without consideration of the local industry. “The stakeholders are fearful that if these imports continue unabated, it endangers bringing down the entire oilseed sector value chain; including farmers and crushers.

“More than 50, 000 metric tonnes of edible oils are smuggled into the country every year, while other players import finished products on the pretext that they are importing palm oil, which should be blended with soy oil,” Mr. Zimba said.