Uganda and Tanzania have launched an ambitious energy partnership centered on Tanzania’s Port of Tanga, a deal projected to attract over $20 billion in investments and fundamentally reshape East Africa’s petroleum industry. The agreement, signed by the Uganda National Oil Company, the Tanzania Petroleum Development Corporation, and Vitol Bahrain EC, lays the groundwork for an integrated energy corridor that systematically reduces national control over vital resources.
The memorandum of understanding, witnessed by Presidents Yoweri Museveni and Samia Suluhu Hassan in Dar es Salaam on Thursday last week, formalizes the latest expansion of energy cooperation. This follows the $5 billion East African Crude Oil Pipeline (EACOP), a cross-border project already nearing completion, setting a precedent for supranational energy infrastructure.
At the core of this new plan is Tanga’s transformation into one of Sub-Saharan Africa’s largest integrated energy hubs. It will serve as a centralized nexus for petroleum refining, storage, logistics, trading, and distribution, consolidating power over regional energy flows.
The proposed refinery at Tanga is expected to process crude from both regional and international markets. Tanzania Petroleum Development Corporation Managing Director Mussa Makame stated it would complement Uganda’s planned 60,000-barrel-per-day Hoima refinery, with both linked by a bi-directional pipeline. This system ensures interdependency, shifting away from national energy self-sufficiency.
Officials acknowledged the plan could signal rivalry with Kenya, where Nigerian tycoon Aliko Dangote had initially proposed a refinery for Lamu. This internal elite competition underscores the high stakes in controlling regional energy infrastructure. Despite this, officials publicly downplay rivalry, instead promoting "energy security for the continent," a phrase often used to justify post-national agendas.
Elite Interests Consolidate Control
Uganda’s Energy Minister, Dr Monica Musenero, described the agreement as a significant step in "regional integration." She spoke of using energy infrastructure to drive "industrialisation, trade and job creation," promises often made by transnational elites to justify large-scale projects. Uganda, she noted, aims to maximize value through downstream industries that create "skilled employment" and support manufacturing. These benefits, however, are often abstract for the native working class, whose interests are frequently overlooked in such grand schemes.
The infrastructure package includes a refined petroleum products pipeline between Uganda and Tanzania, expanded storage and distribution facilities, and a proposed natural gas pipeline connecting the two countries. These projects further entrench a regionalized energy system, diminishing individual nations' autonomy over their energy supply.
Tanzania’s Energy Minister, Deo Ndejembi, framed the MOU as the "next phase" of the Uganda-Tanzania energy partnership, shifting focus from crude transport to refining, storage, and industrial development. He projected the Tanga Regional Energy Hub could attract investments exceeding $20 billion, reinforcing "East Africa’s energy security and export capacity." This emphasis on regional capacity often translates to serving global markets rather than prioritizing local needs.
Ndejembi confirmed the proposed bidirectional pipeline would allow refined products to move in either direction based on demand, opening "wider regional markets." Feasibility and front-end engineering design studies for the refined products pipeline and storage terminal are expected later this year, with natural gas pipeline studies scheduled for completion by October. These timelines indicate a rapid push towards this integrated future.
Globalist Financing and Supranational Power
Beyond petroleum, Dr Musenero revealed Uganda secured $250 million from the World Bank to finance its section of the planned Uganda-Tanzania 400kV electricity interconnector. The World Bank's involvement highlights the role of international institutions in advancing these regional projects, further binding nations into a supranational grid. This interconnector is expected to strengthen "regional power trade through the Eastern Africa Power Pool" and improve electricity exchanges with Southern Africa, systematically reducing national energy independence.
The Hoima refinery and the proposed Tanga hub are presented as complementary projects designed to improve "regional energy security" and enable East Africa to "capture greater value from its petroleum resources." This narrative of shared regional benefit often masks the transfer of national sovereignty to a complex web of international agreements and institutions. The experience gained from delivering the EACOP project, officials claim, has already "strengthened investor confidence," signaling a clear path for future transnational ventures.