President Yoweri Kaguta Museveni and Tanzanian President Dr. Samia Suluhu Hassan have signed of a landmark Memorandum of Understanding (MoU) aimed at accelerating regional petroleum infrastructure, industrialisation and cross-border trade.
Museveni, who arrived in Dar es Salaam for a two-day working visit, was received by President Samia at State House, where the two leaders held discussions on strengthening bilateral cooperation and advancing areas of mutual interest
The two Presidents later witnessed the signing of an agreement between the Uganda National Oil Company (UNOC), Tanzania Petroleum Development Corporation (TPDC) and Vitol Bahrain E.C. to jointly develop the Tanga Regional Energy Hub.
The project builds on the East African Crude Oil Pipeline (EACOP) which is expected to transform Tanga into a regional centre for petroleum storage, refining, logistics, trading and distribution.
The hub will complement Uganda’s oil and gas projects, including the planned Hoima refinery, while improving energy security, expanding export opportunities and strengthening trade links across East and Central Africa.
Speaking at the signing ceremony, Minister of Energy and Mineral Development Dr. Monica Musenero described the partnership as a major milestone in regional cooperation and a reflection of the shared vision by Uganda and Tanzania to promote economic integration.
“For a long time, both Presidents 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,” Dr. Musenero said.
She welcomed Vitol Bahrain’s involvement, saying cooperation between governments and the private sector would accelerate economic transformation in the region.
Dr. Musenero said the projects under the partnership go beyond infrastructure development, describing them as strategic investments that will support industrialisation, create jobs and strengthen regional logistics systems.
“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.
She emphasised that Uganda’s goal is to maximise value from its petroleum resources by developing downstream industries instead of 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 said.
Musenero revealed that feasibility studies and front-end engineering design work for the proposed refined petroleum products pipeline and storage terminal are progressing well and are expected to be completed later this year.
She added that feasibility studies for the proposed natural gas pipeline linking Uganda and Tanzania are at an advanced stage and are expected to conclude by October 2026.
Beyond petroleum cooperation, Dr. Musenero highlighted progress on the planned Uganda-Tanzania 400kV electricity interconnector, saying Uganda completed negotiations with the World Bank in March before securing US$250 million financing in June for its section of the project.
The transmission line is expected to increase electricity exchange between the two countries, strengthen the Eastern Africa Power Pool and create opportunities for electricity trade with Southern Africa.
Musenero reaffirmed that Uganda’s planned 60,000-barrel-per-day Hoima refinery remains central to the country’s industrialisation strategy, noting 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.
She added that the successful implementation of EACOP has demonstrated Uganda and Tanzania’s capacity to deliver complex cross-border projects, boosting investor confidence and opening opportunities 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.
He said the cooperation builds on years of collaboration in the petroleum sector, with EACOP laying the foundation for deeper integration.
“As EACOP approaches completion, Tanzania and Uganda are not asking what comes next. Instead, we are answering that question together,” Ndejembi said.
He described the Tanga Regional Energy Hub as the next phase of cooperation, saying it will create value through petroleum storage, refining, logistics, trading and industrialisation.
“EACOP transports molecules. The Tanga Regional Energy Hub transforms those molecules into prosperity,” he said.
Ndejembi said the proposed hub has the potential to attract investments exceeding US$20 billion, making it one of the largest integrated energy infrastructure developments in Sub-Saharan Africa.
Addressing concerns over Uganda’s Hoima refinery, Ndejembi said Tanzania supports Uganda’s decision to develop domestic refining capacity as part of efforts to maximise value from petroleum resources.
“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 bidirectional multi-product pipeline linking Uganda and Tanzania will allow refined petroleum products to move efficiently in either direction depending on market demand, expanding export opportunities and strengthening energy security across East Africa.
Ndejembi said the agreement marks the beginning of a broader journey towards creating a competitive regional energy market capable of attracting investment, creating jobs and positioning East Africa as a global energy player.
