Tanzania and Uganda have signed a $20 billion deal with global energy trader Vitol Bahrain to build a refinery in port Tanga. Vitol is a $340 billion company that can execute a $20 billion project without asking for upfront as long as the deal is clean and straight.
This development by Tanzania and Uganda to the Tanzanian port city of Tanga into a regional energy hub will deepen a partnership that could reshape fuel trade, investment and energy security across East Africa.
Memorandum of Understanding (MOU) was signed in Dar es Salaam in the presence of Tanzanian President Samia Suluhu Hassan and Ugandan President Yoweri Museveni during the two-day working visit of the Ugandan leader.
President Samia described the project as part of a broader strategy to add value to the region’s natural resources while it will strengthen economic cooperation between the neighbouring countries. She stated that this project will create jobs, attract investment and allow citizens to benefit more from the energy value chain.
Museveni stated that the agreement between the Uganda National Oil Company (UNOC), the Tanzania Petroleum Development Corporation (TPDC) and Vitol Bahrain E.C. marked another milestone in the long-standing partnership between the two countries.
Tanzania and Uganda have signed a $20 billion deal with Vitol Bahrain to build a refinery in port Tanga.
Vitol is a $340 billion company that can execute a $20 billion project without asking for upfront as long as the deal is clean and straight. pic.twitter.com/p8wIiFsiQv
— Akech Andrew (@akech_andrew) August 7, 2026
The announcement came as East Africa prepares for one of the most significant changes in its energy landscape. Uganda is expected to begin commercial crude oil production this year.
Exports are set to flow through the 1,443-kilometre East African Crude Oil Pipeline (EACOP) to Tanzania’s Port of Tanga, positioning the coastal city as Uganda’s main gateway to international oil markets. Construction of the pipeline is nearing completion, as the two governments are targeting first exports later this year.
Rather than serving only as an export terminal, Tanga is increasingly being positioned as a broader regional energy centre. The proposed hub is expected to support petroleum storage, blending, logistics, marine services and fuel trading. It allows East African countries to retain more value from their oil resources instead of relying heavily on imported refined products and foreign trading centres. The initiative is built on a wider regional vision.
Earlier in 2026, Kenya, Tanzania, Uganda and other East African countries revealed plans to explore a regional oil refinery in Tanga modelled on Nigeria’s Dangote Refinery. Africa’s richest man, Aliko Dangote, also offered to lead the construction of the proposed refinery if governments agreed to move ahead with the project.
For Tanzania, the latest agreement strengthens its ambition to become East Africa’s energy and logistics gateway.