Africa (Jan – May) 2022

Malaysian Palm Oil Exports Performance to Sub-Saharan Africa Region
(January – May 2022)
A Review on MPO Export Performance

Table 1: Top Importers of Malaysian Palm Oil from Sub-Saharan Africa

CountryJan – May 2022Jan – May
2021
Difference (Volume)Difference
(%)
Jan-Dec 2021
Kenya317,589203,653113,93755.95672,715
Tanzania107,34057,69049,65086.06204,085
Mozambique82,542100,982(18,440)(18.26)282,477
South Africa60,51952,3058,21415.70129,677
Togo44,33226,50617,82667.25136,536
Madagascar42,84131,02111,82038.1095,505
Angola42,65041,1311,5203.6995,612
Senegal29,85314,43615,418106.8046,730
Benin28,93513,65815,277111.8644,956
Nigeria20,69683,876(63,180)(75.33)309,911
Guinea13,8071,29212,516969.0818,439
Congo Dem. Rep.12,75113,073(322)(2.46)25,997
Mauritania12,26911,8354333.6642,930
Cameroon4,3825,343(961)(17.99)16,923
Ghana4,05874,657(70,598)(94.56)216,808
Cote D’Ivoire3,6494,792(1,144)(23.87)39,215
Gambia3,5744,403(829)(18.83)12,322
Others5,2823,3711,91156.6815,106
Total837,070 744,023 93,047 12.51 2,405,943

Source : MPOB

Imports of Malaysian palm oil by countries in Sub-Saharan Africa increased by 12.51 per cent during Jan-May 2022 period compared to the same period last year. Despite high prices of palm oil, few countries in the region notably Kenya, Tanzania, Togo, Senegal, and Benin have increased their intakes of MPO in Jan-Apr 2022 compared to the year before.

Kenya continues to be the leading importer of MPO from the region with 317,589 MT of imports volume as the demand for CPO from local refineries in Kenya continues to increase in the past few years. In addition, the role of Kenya as a hub for the East Africa region cannot be overstated. Palm oil that is exported by Kenya is also re-routed to the bordering land-locked countries like Rwanda, Burundi, Uganda, and the Democratic Republic of Congo. While most of the palm oil processed in Kenya’s refinery is consumed by the local populations, some of its bottled cooking oil is also re-exported to neighbouring countries like Tanzania and Mozambique.

For countries that rely on cross-frontier trade, such as Togo and Benin, a large improvement in MPO imports by these two countries in Jan-May 2022 is quite an interesting development. In 2021, Benin and Togo imported much less MPO compared to the previous years, as those countries’ borders were closed, and trade was restricted with several of their neighbours in the region including Nigeria, Ghana, Mali, Burkina Faso, and Niger. However, since the beginning of 2022, there is some improvement in cross-border trade between Togo and Benin with the neighbouring states in the West Africa region

Malaysian palm oil imports by other traditional major buyers from the region such as Mozambique, Nigeria, and Ghana have reduced quite considerably compared to the same period in 2021. Minimal import volume by Nigeria and Ghana suggests that local palm oil production in these two countries is improving in the past few months and also the possibility of cross-border trade between Ivory Coast, Benin, and Togo with Ghana and Nigeria. Industry sources in Nigeria attributed the drop in the import volume of palm oil is due to the ongoing massive expansions by existing plantations and the entry of new players, which have helped in raising domestic production. However, there are no reliable figures for the increase in Nigeria’s and Ghana’s palm oil production and the actual volume of cross-border trade with their neighbouring West African countries. Moreover, high palm oil prices and high inflation rates since the beginning of this year have dampened the demand from some countries in the region as it erodes consumers’ purchasing power and less oils and fats consumption.

Figure 1: Monthly Exports of MPO to Sub-Saharan Africa (MT)

Next Few Month’s Outlook

Palm oil prices have now peaked, as Indonesia lifted its export ban on 21st May 2022. Palm oil prices had already risen to an all-time high in March 2022 following a drop in edible oil stocks including the impact of Russia’s invasion of Ukraine. The price is expected to go down to a more stable level in the second half of this year as the supply of edible oil is recovering.

In the next few months, countries like Mozambique, Nigeria, Ghana, and South Africa are expected to import more MPO as palm oil prices become more affordable. The import performance of these countries will be based on indicators such as economic recovery, dollar availability, spending power, vaccination rate and others. Emerging countries such as Madagascar, Angola, and the Congo Democratic Republic have the potential to import more Malaysian palm oil as better economic conditions and lower palm oil prices will propel growing domestic demand and growth in the food processing industry. However, a drastic shortage of US Dollars especially in Kenya and Nigeria could hamper the facilitation of essential foreign transactions to import palm oil from Malaysia or Indonesia.

Figure 2: Breakdown of MPO Exports (%) Jan-May 2022

Source : MPOB

Crude palm oil/olein (CPO/CPL), RBD Palm Olein, and cooking oil are the two main MPO palm oil products that are imported into the region. Each product constitutes about 44.9%, 19.71% and 19.02% respectively of the total imports. CPO/CPL imports have decreased by 23.11% to 376,415 MT as compared to 489,555 MT during the same period last year due to less imports by Nigeria and Ghana. The top importers of Malaysian CPO/CPL are Kenya (193,313 MT), Mozambique (59,737 MT), and Madagascar (42,304 MT). On the other hand, cooking oil imports have increased by 237.64% to reach 159,189 MT from 47,147 MT registered in Jan-May 2021. The major importers of cooking oil from the region include Tanzania (38,964 MT), Angola (39,582 MT), and Benin, (19,758 MT).

Table 2: Breakdown of MPO Exports Products to Sub-Saharan Africa (MT)

PRODUCTJan-May 2022Jan-May 2021Diff (MT)Diff (%)Jan-Dec 2021
CPO/CPL/CPS376,415489,555(113,140)(23.11)1,557,317
Cooking Oil159,18947,147112,042237.64187,570
RBD PL164,975143,51321,46214.95463,482
RBD PO29,15211,41617,736155.3629,084
RBD PS47,15122,52224,629109.3667,911
PFAD53,92822,51431,414139.5380,328
Others6,2607,356(1,096)(14.90)20,251
Total837,070744,02393,04712.51 2,405,943

For more info please contact Mr Iskahar
Email : iskahar@mpoc.org.my

*Disclaimer: This document has been prepared based on information from sources believed to be reliable but we do not make any representations as to its accuracy. This document is for information only and opinion expressed may be subject to change without notice and we will not accept any responsibility and shall not be held responsible for any loss or damage arising from or in respect of any use or misuse or reliance on the contents. We reserve our right to delete or edit any information on this site at any time at our absolute discretion without giving any prior notice.

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