Museveni Bets on Samia to Save Oil Plan
As Uganda faces political and legal challenges in utilizing Kenya’s Mombasa Port for its petroleum imports, President Yoweri Museveni turns his focus towards Tanzania, aiming to secure the port of Dar es Salaam as a viable alternative. With the Uganda National Oil Company’s (Unoc) multimillion-dollar fuel importation deal with Swiss commodity giant Vitol hanging in the balance, technical teams from Uganda have been dispatched to Tanzania to hash out the details of the proposed arrangement.
The urgency of the situation led Ugandan envoys to meet with Tanzanian President Samia Suluhu Hassan, discussing tax waivers, shipping volumes, and transport modes. Tanzanian offers seem promising, boasting advantages like a 30-day free storage period for Ugandan imports—a significant improvement over Mombasa’s 15-day offer.
According to Energy Minister Ruth Nankabirwa, negotiations are still underway, with Uganda pursuing a substantial shift to import approximately two billion litres of petroleum products through Tanzania, seeking to bypass the infrastructural and efficiency issues previously associated with Dar es Salaam.
Despite the transition facing hurdles, including ongoing court cases and unresolved disputes with Kenya, Uganda remains committed to the Dar es Salaam route. This decision underscores the broader strategic shift in regional logistics, as Kampala seeks more favorable terms and reliable supply lines for its energy needs. President Museveni’s move underscores the complex interplay of regional politics, economic interests, and the quest for energy security in East Africa.
