Talk about the adage that local problems need local solutions, a Zambian entreprenuer has raised to the challenge of escalating imported cooking oil prices on the market by locally manufacturing the commodity with locally grown oil seeds.
The local oil processor based in Lumezi district of Eastern Province has defied the odds and is manufacturing and retailing a 2.5Ltrs cold pressed cooking oil container for K88 when compared to the imported industrial processed ones that are now fetching between K150 to K200 for a 2.5ltrs container. The cold pressed cooking oil is organic and is about 80% de-ordourised.
Mangaliso Chihana, the entreprenuer behind the locally manufactured cooking oil that cuts the price by over 50% said he started processing sunflower into cooking oil in 2017 after identifying an opportunity to close the gap in terms of local cooking oil production as well as a means to build a business.
Chihana said he is currently producing about 1,000 litres of cooking oil per day, which he is selling at K40 per litre, adding that prices may fluctuate due to the price of sunflower and soyabeans, which has continued to increase.
He told ZBT that lack of financial institutions that places on premium on local innovation and entrepreneurship is the major financial constraint that his company is facing to scale up and increase production. We need to increase the crushing capacity which requires acquisition of additional machinery and more raw materials.
Speaking in an exclusive interview with the Zambian Business Times-ZBT, Chihana said he use the by-products or remains from the crushing or pressed oil seeds to makes animal feed, that is out of the soyabeans and sunflower by-products, which is also being sold separately.
He told ZBT that he buys the sunflower and soya beans from farmers around Lumezi district (which lies between Chipata and Lundazi) as well as from other villages and farms nearby. He sourcing is local and therefore not directly subjected to abrupt exchange rate movements.
He said people from around Lumezi district as well as Malawi are his key customers who mainly buy the cooking oil in bulk and resell in small quantities and he is now working on expanding the reach in order to be able to supply to other parts of Zambia.
He noted that the cooking oil his company is producing is organic, has known health benefits as there are no chemicals added to it and the recommended time of use is within four months from the time the cooking oil is purchased to about 2 years.
People in Zambia just for psychological reasons or sometimes wanting to buy from shopping malls prefer imported cooking oil when our locally produced cooking oil is even much better and more healthy for consumption. Our cooking oil is competitively priced, stated Chihana.
Chihana said his business is currently not able to meet the high and expanding demand and told ZBT that he is hopeful that they will be able to acquire more machinery as he has plans of increasing production to about 10,000 litres a day.
To contact the company or get connected to locally produced cooking oil, kindly email to info@zambianbusinesstimes.com or editor@zambianbusinesstimes.com
