Uganda and Tanzania Forge New Energy Partnership

Uganda and Tanzania are set to enhance their energy sector collaboration with the signing of a new Memorandum of Understanding (MoU) in Dar es Salaam. This agreement aims to accelerate the development of regional petroleum infrastructure, foster industrial growth, and increase cross-border trade between the two East African nations.

The pact signifies a concerted effort to build a more competitive regional energy market. This initiative is expected to generate employment opportunities, attract significant investments, and elevate East Africa’s standing as a global energy player.

Key to this partnership is the planned joint development of the Tanga Regional Energy Hub. This project involves the Uganda National Oil Company (UNOC), Tanzania Petroleum Development Corporation (TPDC), and Vitol Bahrain E.C. The hub is envisioned to become a central point for petroleum storage, refining, logistics, trading, and distribution, complementing Uganda’s own oil and gas projects, including the Hoima refinery.

Uganda’s Minister of Energy and Mineral Development, Dr. Monica Musenero, highlighted the MoU as a testament to regional cooperation and a step towards a united and prosperous Africa. She emphasized that these projects are strategic investments designed to create jobs, deepen regional trade, and strengthen economic logistics.

Beyond petroleum, the countries are also advancing on a planned 400kV electricity interconnector, which has secured significant financing. This infrastructure will boost electricity exchange between Uganda and Tanzania and enhance the Eastern African power pool, opening avenues for electricity trade with Southern Africa.

While Uganda’s Hoima refinery remains a cornerstone of its industrialization strategy, it is seen as complementary to the Tanga Hub. The successful implementation of the East African Crude Oil Pipeline (EACOP) has demonstrated the capability of both nations to execute complex cross-border projects, building confidence for future regional investments.

https://www.monitor.co.ug/uganda/news/national/museveni-suluhu-sign-new-energy-partnership-5549164