Uganda and Tanzania have signed a Memorandum of Understanding, which is expected to attract investments exceeding $20bn in the energy sector, including a refinery in the Tanga region.
Speaking after witnessing the signing at State House in Dar es Salaam, Tanzanian President Samia Suluhu Hassan said the initiative forms part of her government’s strategy to add value to the region’s energy resources while deepening economic cooperation between the two neighbouring countries.
“Accompanied by my brother, the President of the Republic of Uganda, H.E. Yoweri Museveni, we witnessed our countries—in collaboration with the Vitol company from the Kingdom of Bahrain—sign a Memorandum of Understanding regarding proposals to develop Tanga City into a regional energy hub,” President Samia said.
She thanked President Museveni for what she described as continued cooperation that has strengthened bilateral relations and delivered benefits to the citizens of both countries.
According to President Samia, the proposed energy hub is expected to expand employment and investment opportunities, enable citizens to benefit more from the energy sector value chain, and accelerate economic growth in both Tanzania and Uganda.
“This project is part of our commitment to adding value to our resources and enhancing economic cooperation,” she said.
The agreement marks a new phase in Uganda-Tanzania energy cooperation, with both governments seeking to leverage their strategic partnership to boost regional energy trade and industrial development.
President Museveni has since returned to Uganda following the two-day working visit to Tanzania, where he held bilateral talks with President Samia focused on strengthening cooperation between the neighbouring states.
He arrived at Entebbe International Airport on Friday evening and was received by Vice President Jessica Alupo, Head of Public Service and Secretary to the Cabinet Lucy Nakyobe, and other senior government officials.
During the visit, the two leaders witnessed the signing of the MoU, which is expected to deepen collaboration in the energy sector and support sustainable economic development.
The visit also reaffirmed the longstanding ties between Uganda and Tanzania, underscoring the two countries’ commitment to advancing regional integration through strategic economic partnerships.