Tanzania and Uganda have signed an MoU expected to attract more than Ksh2.58 trillion ($20 billion) in energy investments, including a major refinery in Tanzania’s Tanga region.
The agreement was signed by Tanzania Petroleum Development Corporation, Uganda National Oil Company and Vitol Bahrain during Ugandan President Yoweri Museveni’s State visit to Tanzania.
The development comes months after Aliko Dangote indicated he preferred building a large refinery in Kenya rather than Tanga.
The project aims to transform Tanga into a regional energy hub through four components: a crude oil refinery, storage terminal, jetty and a pipeline transporting refined products between Tanga and Uganda.
Tanzania’s Energy Minister Deogratius Ndejembi said the initiative would create jobs, industries, exports and technology transfer across East Africa.
Officials said the Tanga project will complement Uganda’s planned refinery and strengthen regional energy security and trade. Already, Tanzania and Uganda are jointly implementing the East African Crude Oil Pipeline (EACOP), a Ksh774 billion ($6 billion) project that is about 91% complete and stretches 1,443 kilometres from Hoima in Uganda to Chongoleani in Tanga, Tanzania
