By Caroline Nakire
President Yoweri Kaguta Museveni and Tanzanian President Dr Samia Suluhu Hassan during bilateral talks at State House in Dar es Salaam ahead of the signing of a landmark Uganda–Tanzania energy cooperation agreement.
President Yoweri Kaguta Museveni and Tanzanian President Dr Samia Suluhu Hassan have launched a new chapter in Uganda–Tanzania energy cooperation following the signing of a landmark Memorandum of Understanding (MoU) aimed at accelerating petroleum infrastructure, industrialisation and regional trade.
The agreement, signed during President Museveni’s two-day working visit to Tanzania, paves the way for the development of the Tanga Regional Energy Hub, a flagship project expected to attract investments of more than US$20 billion and strengthen East Africa’s position as a regional energy and logistics centre.
The MoU was signed by the Uganda National Oil Company (UNOC), the Tanzania Petroleum Development Corporation (TPDC) and Vitol Bahrain E.C., a subsidiary of one of the world’s leading independent energy and commodities trading companies. President Museveni and President Samia witnessed the signing after holding bilateral talks at State House in Dar es Salaam.
The proposed Tanga Regional Energy Hub builds on the success of the East African Crude Oil Pipeline (EACOP) and is expected to transform Tanzania’s port city of Tanga into a regional centre for petroleum storage, refining, logistics, trading and distribution. The project will also complement Uganda’s planned Hoima refinery, strengthen energy security and facilitate trade across East and Central Africa.
Uganda’s Minister of Energy and Mineral Development, Dr Monica Musenero, described the agreement as a major milestone in advancing regional integration and Africa’s industrialisation agenda.
“For a long time, Your Excellencies have championed a united Africa driven by shared interests and trade. Today, we are witnessing that vision becoming reality through this partnership,” Dr Musenero said.
She welcomed Vitol Bahrain into the partnership, noting that collaboration between governments and the private sector would accelerate investment and economic transformation across the region.
“These are not merely infrastructure projects. They are strategic investments that will create jobs for our young people, deepen regional trade and strengthen the logistics systems that support our economies,” she said.
Dr Musenero reaffirmed Uganda’s commitment to adding value to its petroleum resources through downstream industries instead of exporting crude oil alone.
She revealed that feasibility and front-end engineering design studies for the proposed refined petroleum products pipeline and storage terminal are progressing well and are expected to be completed later this year.
Studies for the proposed Uganda–Tanzania natural gas pipeline are also at an advanced stage and are anticipated to conclude by October 2026.
The minister further highlighted progress on the planned Uganda–Tanzania 400kV electricity interconnector, revealing that Uganda secured US$250 million in financing from the World Bank in June following successful negotiations.
According to Dr Musenero, the transmission line will expand electricity trade between Uganda and Tanzania, strengthen the Eastern Africa Power Pool and create additional opportunities for power exports across the region.
She added that Uganda’s planned 60,000-barrel-per-day Hoima refinery will work in tandem with the Tanga Regional Energy Hub to ensure that East Africa derives greater value from its petroleum resources through refining and downstream industrial development.
Tanzania’s Minister of Energy, Hon. Deo Ndejembi, described the agreement as another milestone in the long-standing partnership between Uganda and Tanzania.
“The story we celebrate today did not begin in 2026. It began several years ago when Tanzania and Uganda made the courageous decision to deepen cooperation in the petroleum sector,” he said.
He noted that while EACOP laid the foundation for regional collaboration, the Tanga Regional Energy Hub represents the next phase by promoting refining, petroleum storage, logistics and industrialisation.
“As EACOP approaches completion, Tanzania and Uganda are not asking what comes next. Instead, we are answering that question together,” he said.
Hon. Ndejembi said the integrated energy hub could attract investments exceeding US$20 billion, making it one of the largest energy infrastructure developments in Sub-Saharan Africa.
He added that the planned bidirectional multi-product pipeline will enable refined petroleum products to move efficiently between Uganda and Tanzania in response to market demand, strengthening energy security and creating new opportunities for regional and international trade.
Following the signing ceremony, President Samia hosted President Museveni at a State luncheon, underscoring the close diplomatic and economic ties between the two neighbouring countries.
The agreements signal a significant step towards deeper regional integration, with Uganda and Tanzania positioning themselves as strategic partners in developing a competitive energy industry capable of driving industrialisation, creating employment and enhancing economic growth across East Africa.
Uganda’s Minister of Energy and Mineral Development, Dr Monica Musenero, addresses delegates during the Uganda–Tanzania energy partnership signing ceremony in Dar es Salaam.