Intergrated Oil Palm and Edible Oil Production Project

The Corporation intends to establish large scale commercial farming of Oil Palm and refinery plant in Kigoma Region in partnership with strategic private investment partner. This follows a feasibility study conducted for establishment of the project in the Coast Region. The conducted study entails establishment of oil palm farming and production of palm oil on a 10,000 hectares farmland. The planned production capacity is 58,000,000 litres of palm oil per annum at a productivity of 7,250 litres of Oil palm/hectare/ annum including production of 10 MW of electricity\ from biomass Estimated investment cost for the project was USD 111 million. Expected project benefits once the project is implemented are technology transfer for cultivation of oil palm, generation of power 10 Megawatts and income revenue estimated at US $51.7 million per annum.


Kalunga and Kihuhwi rubber plantations in Kilombero and Muheza were established by the Government in 1978 and 1981 respectively as raw materials for General Tyre (EA) Limited located in Arusha. The sizes of the farms are Kalunga 754.4 hectares and Kihuhwi 789 hectares. During handover to NDC in May 2009, the area planted with rubber was 30% to 35% after the Government decision not to privatize the farm.

Areas with productive trees are Kihuhwi – 318 ha and Kalunga – 192 ha. The farms were transferred to NDC in 2009 to develop them in partnership with investors. NDC has been working with private investors to manage and develop the rubber plantations. A total of 133 ha of vacant land at Kalunga have been planted with rubber. Efforts to identify better rubber seedlings for planting the remaining vacant land at Kihuhwi (471ha) and Kalunga (429ha) plantations is in progress.