Uganda and Tanzania have taken another major step in strengthening their long-standing bilateral relations after President Yoweri Kaguta Museveni and Tanzanian President Dr. Samia Suluhu Hassan witnessed the signing of a landmark Memorandum of Understanding (MoU) to develop the Tanga Regional Energy Hub during Museveni’s two-day working visit to Tanzania.
The agreement, signed at State House in Dar es Salaam, brings together the Uganda National Oil Company (UNOC), the Tanzania Petroleum Development Corporation (TPDC), and Vitol Bahrain E.C. in a strategic partnership expected to transform the East African energy landscape.
President Museveni, who is in Tanzania at the invitation of President Suluhu, described the agreement as another milestone in the growing cooperation between the two neighbouring countries.
“Today in Dar es Salaam, together with H.E. Dr. Samia Suluhu Hassan, I witnessed the signing of an MoU between Uganda National Oil Company (UNOC), the Tanzania Petroleum Development Corporation (TPDC) and Vitol Bahrain E.C. to develop the Tanga Regional Energy Hub,” President Museveni said.
The project is expected to enhance regional fuel security, improve petroleum storage and distribution infrastructure, and position Tanzania’s port city of Tanga as a strategic energy gateway serving Uganda and other countries in the Great Lakes region.
Warm Reception at State House
President Museveni was accorded a warm welcome by President Suluhu at State House in Dar es Salaam before the two leaders held bilateral talks focusing on expanding cooperation in trade, energy, infrastructure, security, investment, and regional integration.
The visit reflects the enduring friendship between Uganda and Tanzania, two founding members of the East African Community (EAC), whose relationship dates back several decades and has continued to evolve into one of the strongest bilateral partnerships in the region.
Officials from both governments noted that discussions centred on enhancing economic cooperation, removing barriers to trade, improving transport corridors, and coordinating regional development initiatives.
President Suluhu welcomed President Museveni and reaffirmed Tanzania’s commitment to working closely with Uganda in pursuing shared prosperity.
“Uganda and Tanzania continue to deepen their longstanding partnership as President Yoweri Museveni is received at State House Dar es Salaam for an official visit. The talks will focus on strengthening bilateral cooperation, economic ties and shared development priorities for the two nations and the East African region,” President Suluhu said.
The Tanzanian leader emphasized that stronger collaboration between the two countries would contribute significantly to economic transformation within the East African Community.
Strategic Energy Partnership
The highlight of the visit was the signing of the Memorandum of Understanding on the proposed development of the Tanga Regional Energy Hub. The agreement brings together Uganda National Oil Company (UNOC), Tanzania Petroleum Development Corporation (TPDC), and global energy company Vitol Bahrain E.C. to jointly explore and develop modern petroleum storage and distribution infrastructure.
The initiative is expected to complement the ongoing East African Crude Oil Pipeline (EACOP), which will transport Uganda’s crude oil from Hoima to the Tanzanian port of Tanga for export to international markets.
Industry experts say the energy hub could become one of the largest petroleum logistics centres in East Africa, serving Uganda, Tanzania, Rwanda, Burundi, eastern Democratic Republic of Congo, South Sudan and other regional markets.
The project is also expected to reduce fuel supply disruptions, improve strategic petroleum reserves, and lower transportation costs through integrated infrastructure.
Officials believe the partnership will attract significant private investment while creating employment opportunities and stimulating industrial growth in both countries.
Expanding Economic Cooperation
Beyond the energy sector, Presidents Museveni and Suluhu explored ways of increasing bilateral trade and investment. Uganda and Tanzania have witnessed growing trade volumes over the past decade, supported by improved transport links, cross-border infrastructure, and regional integration initiatives under the East African Community.
The two leaders discussed opportunities for expanding commerce through improved road and railway connectivity, harmonized customs procedures, and increased cooperation in agriculture, manufacturing and tourism.
Both governments expressed optimism that stronger economic ties would benefit businesses and citizens on both sides of the border.
President Museveni has consistently advocated for regional markets as essential drivers of Africa’s industrialization, arguing that expanded intra-African trade provides larger markets for locally manufactured goods. Similarly, President Suluhu has prioritized economic diplomacy aimed at attracting investment while strengthening Tanzania’s position as a regional trade and logistics hub.
Regional Stability and Development
The bilateral talks also covered issues of regional peace, security and development. Uganda and Tanzania have historically collaborated on peacebuilding efforts within the East African Community and the wider African continent. The two presidents reaffirmed their commitment to working together in addressing regional challenges while promoting stability, economic integration and sustainable development.
Officials noted that cooperation between Kampala and Dar es Salaam remains vital in advancing shared regional priorities, including infrastructure development, energy security, environmental sustainability and cross-border trade. The leaders also underscored the importance of maintaining strong diplomatic engagement to address emerging regional opportunities and challenges.
Building on Historic Relations
Relations between Uganda and Tanzania have remained warm for decades, underpinned by shared historical experiences, economic cooperation and regional integration. The partnership has recently gained greater momentum through major infrastructure projects such as the East African Crude Oil Pipeline, which is expected to unlock Uganda’s commercial oil production while boosting Tanzania’s energy and logistics sectors.
The development of the proposed Tanga Regional Energy Hub represents another significant chapter in that partnership. Analysts believe the project could strengthen East Africa’s energy resilience while positioning the region as a competitive destination for investment in petroleum infrastructure. The collaboration also aligns with broader African efforts to enhance energy access, industrialization and regional value chains under the African Continental Free Trade Area (AfCFTA).
Going Forward
President Museveni’s two-day working visit is expected to include further engagements with Tanzanian officials and stakeholders aimed at advancing cooperation in key sectors.
The visit reinforces the commitment of both governments to translating political goodwill into practical economic partnerships capable of delivering tangible benefits to their citizens.
For Uganda, closer collaboration with Tanzania strengthens access to international markets through the Indian Ocean while supporting the country’s emerging petroleum industry.
For Tanzania, partnerships such as the Tanga Regional Energy Hub reinforce its ambition to become East Africa’s premier logistics and energy gateway.
As the two leaders concluded their meeting, the signing of the landmark energy agreement stood as a powerful symbol of the growing strategic partnership between Kampala and Dar es Salaam—one built on shared interests, mutual trust, and a common vision of regional prosperity.
With the Tanga Regional Energy Hub now moving from concept toward implementation, Uganda and Tanzania have signalled their determination to deepen economic integration and jointly shape the future of East Africa’s energy sector.
Author Profile
- Charles Gazza Kodili is a seasoned journalist with over 20 years of experience in the media industry. He holds a Bachelor of Arts degree in Mass Communication. He’s currently the Chief Editor at the Investigator.
Charles can also be reached via; Tel: +256 774 108978
Email: [email protected]
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