Tanzania sees the signed energy MoU as strategic milestone to rake in 20bn US dollars investment

DAR ES SALAAM: THE Minister for Energy, Deogratius Ndejembi, has said the signing of a Memorandum of Understanding (MoU) between Tanzania and Uganda on the development of the Tanga Regional Energy Hub marks a strategic milestone that will transform the economy and energy sector in East Africa by attracting investments estimated at more than 20bn US dollars.

Speaking at the State House in Dar es Salaam yesterday during the signing ceremony witnessed by President Samia Suluhu Hassan and Ugandan President Yoweri Kaguta Museveni, Mr Ndejembi said the agreement demonstrates Africa’s capacity to work as strategic partners in planning, financing and implementing major development projects for mutual benefit.

He said the partnership builds on the success of the East African Crude Oil Pipeline (EACOP) project, valued at approximately six billion US dollars, which was launched in 2017 by Tanzania, Uganda and their partners.

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According to the minister, Tanga was selected as the regional energy hub because of its technical, economic and environmental advantages, as well as its strategic location on the East African coast.

Mr Ndejembi said the next phase of cooperation extends beyond crude oil transportation to building a value-added energy economy through oil refining, storage, trading, transportation, industrial development, job creation and expanded regional commerce.

He noted that the initiative is in line with President Samia Suluhu Hassan’s vision of positioning Tanga as the leading oil and energy hub for East Africa, strengthening regional energy security while stimulating industrialisation and economic growth across the region.