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Installed Capacity for Edible Oil Production Already Covers Domestic Consumption

Installed Capacity for Edible Oil Production Already Covers Domestic Consumption

If all edible oil factories in the country were operating near their installed capacity, there would be no need to import this product. However, the reality is different. Angola still relies on the import of crude oil for refining and finished products for packaging. This week, the Rafinole factory was inaugurated.

The inauguration of Rafinole – Comércio e Serviços, Lda’s vegetable oil production plant this Monday in Luanda adds further industrial capacity to a sector that has grown rapidly in recent years, but which continues to face a structural contradiction: Angola already has the capacity to produce more edible oil than it consumes, yet it remains dependent on raw material imports and operates far below installed potential.

The new industrial unit, an investment valued at around USD 90 million, was inaugurated by the Minister of State for Economic Coordination, José de Lima Massano, in a ceremony also attended by the Minister of Industry and Commerce, Rui Miguêns. The factory has the capacity to produce around 400 tons of vegetable oil per day, equivalent to approximately 453,000 liters, representing an estimated annual production of 110 million liters assuming operation without weekends or holidays. The unit features four continuous production lines dedicated to refining and packaging edible oil.

Additionally, it includes industrial capacity to produce 18,000 tons per year of margarine and vegetable fats, as well as lines for mayonnaise and other condiments, with a projected capacity of 6,000 tons annually, and around 7,000 tons of vinegar per year. The industrial complex also includes a bottling system with an annual capacity of approximately 480,000 tons, although part of this capacity is not yet fully operational.

From a social and economic perspective, the company currently employs 130 Angolan workers, a number expected to grow to 300 direct jobs by the end of the year. Rafinole produces brands such as Primavera, Massima, Biba, and Santa Clara, and also offers production services for private labels.

More Capacity in an Expanding Sector

During the inauguration, the Minister of Industry and Commerce highlighted that the growth in edible oil production results from the government’s import substitution and industrial strengthening policies adopted in recent years. According to Rui Miguêns, Angola’s installed industrial capacity for vegetable oil processing currently exceeds 1,300 tons per day, reflecting the operation of several industrial units, including the recently opened Rafitec in the Boavista area of Luanda.

With Rafinole’s entry, the sector gains another significant operator, joining companies such as Grupo Carrinho, Sovena, Induve, Grupo Naval, and Angoalissar, which in recent years have invested in refining and packaging vegetable oils in the country.

Industrial expansion has made it possible to reach a production capacity that already approaches—or even exceeds—national consumption levels. Market estimates indicate that Angola consumes around 380,000 to 400,000 tons of edible oil per year, equivalent to roughly 420–435 million liters, or an average of 1,100–1,200 tons per day.

Comparing these numbers with the currently installed industrial capacity—over 1,300 tons per day—shows that the country already has sufficient capacity to meet much of domestic demand, at least in terms of refining and packaging.

Factories Operating Below Potential

Despite this, most industrial units in the sector do not operate at full capacity. Industry sources indicate that many factories currently operate at 50–70% of installed capacity, mainly due to difficulties in securing regular access to raw materials. Most refined oil produced in Angola comes from imported crude oil, primarily palm, soy, and sunflower oil, sourced mainly from markets such as Indonesia, Malaysia, Brazil, and Argentina, which dominate global vegetable oil trade.

Thus, while industrialization has advanced significantly, the agricultural base of the production chain remains weak, limiting effective import substitution. Even with increased national production, Angola continues to import significant quantities of vegetable oils and associated raw materials.

In recent years, import patterns have shifted: instead of fully packaged edible oil, the import of crude oil for local refining has increased. This model allows greater value-added creation through industrial processing, packaging, and distribution, but it maintains external dependency on raw materials, exposing the sector to international price fluctuations and foreign currency availability.

Prices Fall, But Challenges Remain

See Also

According to the Minister of Industry and Commerce, increased domestic production capacity has already contributed to an average reduction of around 25% in edible oil prices in the national market, benefiting consumers. However, sector operators acknowledge that the real challenge lies in developing an agricultural chain capable of producing the necessary oilseeds locally, such as palm, soy, and sunflower. Without this step, the industry will continue to primarily act as a refiner of imported raw materials, limiting the structural impact of the government’s import substitution policy.

Source: Expansão

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