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Presidents Museveni, Suluhu launch new phase of Uganda-Tanzania energy partnership
President Museveni, who arrived in Dar es Salaam on Wednesday (August 5) for a two-day working visit, was Thursday (August 6) received by President Suluhu at State House in Dar es Salaam, where the two Heads of State held a tête-à-tête to discuss matters of mutual interest and ways of strengthening bilateral cooperation.
Presidents Museveni, Suluhu launch new phase of Uganda-Tanzania energy partnership
By: Vision Reporter, Journalist @New Vision
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President Yoweri Museveni and his Tanzanian counterpart Dr Samia Hassan Suluhu have launched a new chapter in the Uganda–Tanzania energy cooperation following the signing of a landmark Memorandum of Understanding (MoU) aimed at accelerating regional petroleum infrastructure, industrialisation and cross-border trade.
President Museveni, who arrived in Dar es Salaam on Wednesday (August 5) for a two-day working visit, was Thursday (August 6) received by President Suluhu at State House in Dar es Salaam, where the two Heads of State held a tête-à-tête to discuss matters of mutual interest and ways of strengthening bilateral cooperation.
The two leaders later witnessed the signing of an MoU between the Uganda National Oil Company (UNOC), the Tanzania Petroleum Development Corporation (TPDC) and Vitol Bahrain E.C to jointly develop the Tanga Regional Energy Hub.
The partnership builds on the East African Crude Oil Pipeline (EACOP) and is expected to transform Tanga into a regional hub for petroleum storage, refining, logistics, trading and distribution. It will also complement Uganda's oil and gas projects, including the Hoima refinery, while enhancing energy security, expanding export opportunities and strengthening trade across East and Central Africa.
Speaking during the signing ceremony, Uganda's Minister of Energy and Mineral Development, Dr Monica Musenero, described the agreement as a powerful demonstration of regional cooperation and a reflection of the long-held vision of the two Presidents to build a united and prosperous Africa.
“For a long time, Your Excellencies have advocated for a united Africa driven by common interests and shared trade. While we often speak about these aspirations, action speaks louder than words, and today we are privileged to witness a giant step towards joint development with our sister nation,” Musenero said.
She welcomed Vitol Bahrain into the partnership, saying collaboration between the two governments and the private sector would accelerate regional economic transformation.
According to Musenero, the projects under the partnership go beyond infrastructure development and are strategic instruments for industrialisation.
“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.
Musenero stressed that Uganda remains committed to maximising value from its petroleum resources through downstream industries rather than exporting raw commodities.
“We must ensure that we are not simply trading these resources as commodities. We need to extract greater value by developing secondary and tertiary industries, building the knowledge economy and creating high-skilled jobs in engineering, operations, maintenance, laboratory analysis and management,” she added.
Musenero 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.
She also disclosed that feasibility studies for the proposed natural gas pipeline linking Uganda and Tanzania are at an advanced stage and are expected to be concluded by October 2026.
Beyond petroleum, she highlighted progress on the planned Uganda–Tanzania 400KV electricity inter-connector, noting that Uganda concluded negotiations with the World Bank in March before securing $250m (Ush929.5b) in financing in June for its section of the project.
According to Musenero, the transmission line will increase electricity exchange between the two countries, strengthen the Eastern Africa Power Pool and create new opportunities for electricity trade with Southern Africa.
She reaffirmed that Uganda's planned 60,000-barrel-per-day Hoima refinery remains central to the country's industrialisation agenda, emphasising that it complements rather than competes with the Tanga Regional Energy Hub.
“The hub is complementary. Together, these projects will strengthen regional energy security while enabling East Africa to retain more value from its petroleum resources,” she said.
Musenero added that the successful implementation of EACOP has demonstrated Uganda's and Tanzania's ability to deliver complex cross-border projects, boosting investor confidence and paving way for future regional investments.
Musenero stressed that Uganda remains committed to maximising value from its petroleum resources through downstream industries rather than exporting raw commodities.
“We must ensure that we are not simply trading these resources as commodities. We need to extract greater value by developing secondary and tertiary industries, building the knowledge economy and creating high-skilled jobs in engineering, operations, maintenance, laboratory analysis and management,” she added.
Musenero 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.
She also disclosed that feasibility studies for the proposed natural gas pipeline linking Uganda and Tanzania are at an advanced stage and are expected to be concluded by October 2026.
Beyond petroleum, she highlighted progress on the planned Uganda–Tanzania 400KV electricity inter-connector, noting that Uganda concluded negotiations with the World Bank in March before securing $250m (Ush929.5b) in financing in June for its section of the project.
According to Musenero, the transmission line will increase electricity exchange between the two countries, strengthen the Eastern Africa Power Pool and create new opportunities for electricity trade with Southern Africa.
She reaffirmed that Uganda's planned 60,000-barrel-per-day Hoima refinery remains central to the country's industrialisation agenda, emphasising that it complements rather than competes with the Tanga Regional Energy Hub.
“The hub is complementary. Together, these projects will strengthen regional energy security while enabling East Africa to retain more value from its petroleum resources,” she said.
Musenero added that the successful implementation of EACOP has demonstrated Uganda's and Tanzania's ability to deliver complex cross-border projects, boosting investor confidence and paving way for future regional investments.
Tanzania's Minister of Energy, Deo Ndejembi, described the agreement as another historic milestone in the growing energy partnership between the two countries, saying it marks the beginning of a new era of regional energy integration.
“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,” Ndejembi said.
He noted that while EACOP laid the foundation for regional collaboration, the Tanga Regional Energy Hub represents the next phase by creating value through refining, petroleum storage, logistics, trading and industrialisation.
“As EACOP approaches completion, Tanzania and Uganda are not asking what comes next. Instead, we are answering that question together,” Ndejembi said, adding, “EACOP transports molecules. The Tanga Regional Energy Hub transforms those molecules into prosperity.”
He said the proposed hub has the potential to attract investments exceeding $20b, making it one of the largest integrated energy infrastructure developments ever undertaken in Sub-Saharan Africa.
Addressing concerns over Uganda's planned Hoima refinery, Ndejembi stressed that the two projects are strategically complementary.
“Uganda's decision to develop the Hoima refinery reflects its sovereign objective of maximising value from its petroleum resources through domestic refining and industrial development. Tanzania fully supports that ambition,” he said.
He added that the proposed bi-directional multi-product pipeline linking Uganda and Tanzania will allow refined petroleum products to move efficiently in either direction according to market demand, opening wider export opportunities for Uganda while strengthening energy security across East Africa.
Ndejembi said the agreement marks the beginning of a broader journey towards building a competitive regional energy market capable of creating jobs, attracting investment and positioning East Africa as a global energy player.
Suluhu later hosted Museveni at a state luncheon in honour of his visit.