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Tanzania Targets Used Oil Recycling Investment Boom

The biggest challenge is not processing technology but access to sufficient quantities of used oil. There is still a large amount that is discarded instead of entering the recycling chain," Mwakimenya said.
July 10, 2026

 Tanzania is stepping up efforts to build a modern recycling industry by encouraging investment in the processing of used lubricating oil, a move the government says could reduce costly imports, strengthen local manufacturing, create jobs and improve environmental protection.

The initiative forms part of the country’s broader industrialisation agenda, which seeks to increase domestic production while reducing dependence on imported industrial products.

Minister for Industry and Trade Judith Kapinga made the call during a visit to Kamal Refinery in Bagamoyo, Coast Region, where she urged investors, businesses and environmental stakeholders to take advantage of opportunities in the growing used-oil recycling sector.

She said Tanzania generates significant volumes of used engine and industrial oil every year from vehicles, factories, mining operations and heavy machinery, but much of it is either disposed of improperly or remains uncollected, creating both environmental and economic losses.

According to the minister, recycling the oil locally would allow Tanzania to recover valuable industrial lubricants, reduce imports of refined industrial oils and support the country’s expanding manufacturing sector.

“The government will continue creating a favourable investment environment to encourage more investors to establish industries that process used oil. This is important not only for industrial development but also for environmental conservation,” Kapinga said.

Environmental experts warn that a single litre of improperly disposed engine oil can contaminate large volumes of water and damage agricultural land, rivers and groundwater. Recycling used oil helps prevent pollution while reducing demand for newly refined petroleum products.

The government says developing a strong recycling industry also supports Tanzania’s transition toward a circular economy, where waste materials are recovered, processed and returned to productive use instead of being discarded.

Officials believe the approach could help industries lower production costs while reducing pressure on foreign exchange reserves used to import industrial lubricants.

Also Read, Tanzania Praises Citizens For Choosing Peace Over Protests

During the visit, Kamal Refinery Production Manager Prince Mwakimenya said the company requires more than one million litres of used oil every month to operate at full capacity.

However, he revealed that the refinery currently receives enough raw material to utilise only about 40 percent of its production capacity because of inadequate collection systems.

“The biggest challenge is not processing technology but access to sufficient quantities of used oil. There is still a large amount that is discarded instead of entering the recycling chain,” Mwakimenya said.

The refinery converts used lubricating oil into reusable industrial products through specialised purification and refining processes, extending the useful life of petroleum products while reducing waste.

Managing Director Sameer Santosh said the company plans to strengthen cooperation with government institutions, local authorities, transport companies, garages, mining firms and other stakeholders to improve nationwide collection of used oil.

He noted that expanding collection networks would increase production, create employment opportunities and stimulate growth across the recycling value chain.

Industry analysts say Tanzania’s rapidly expanding vehicle fleet, mining sector and manufacturing industries present substantial opportunities for investment in waste oil collection, transportation and reprocessing.

They add that stronger public awareness, improved regulation and investment in collection infrastructure will be essential if the country is to maximise the economic and environmental benefits of the industry.

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