
Tanzania and Uganda have signed an agreement with global oil trader Vitol to transform Tanga Port into a regional energy hub, a move that could reshape East Africa’s fuel supply network. The move comes as Uganda prepares to launch commercial oil production, with crude expected to flow through the East African Crude Oil Pipeline, which is currently under construction, to Tanga for export to international markets. Tanzania’s government has indicated that potential infrastructure investments, including storage facilities, could exceed $20 billion. Uganda currently relies heavily on petroleum imports arriving through Kenya’s Port of Mombasa, making Tanga an alternative route with strategic significance. The agreement comes as disruptions linked to the Iran war highlight East Africa’s vulnerability to imported fuel.
