Uganda is in discussions with Tanzania to alter its oil import route, potentially shifting away from Kenya’s Mombasa port, Uganda’s Energy minister revealed in a statement to Reuters on Thursday. The negotiations signify a significant development in Uganda’s efforts to secure a more reliable and efficient supply chain for its petroleum products.
In November, Uganda announced plans to grant exclusive rights for the supply of all petroleum products to a unit of global energy trader Vitol, aiming to enhance supply security and mitigate price volatility. However, attempts to continue imports via Kenya were met with resistance, as the Kenyan government declined to grant the required license.
As a result, Uganda is now engaging in negotiations with the Tanzanian government to explore the possibility of importing all its oil products through Dar es Salaam. Energy Minister Ruth Nankabirwa confirmed the ongoing discussions, highlighting the importance of finding a route that ensures the country’s energy security.
Also, read; Egypt Officially Abandons US Dollar in Trade Amid BRICS Expansion
“We want to find a route that will keep us safe in terms of petroleum supplies,” stated Minister Nankabirwa, underscoring Uganda’s commitment to securing a reliable and sustainable energy infrastructure.
While Kenya’s Energy and Petroleum Regulatory Authority (Epra) and Tanzanian officials have yet to comment on the negotiations, the potential shift in oil import routes underscores the evolving dynamics of regional trade relations and the growing importance of strategic partnerships in the energy sector.
As Uganda navigates through this transition, stakeholders will closely monitor developments to assess the impact on supply chain logistics, pricing dynamics, and regional economic cooperation. With energy security emerging as a key priority for nations across East Africa, the outcome of these negotiations could have far-reaching implications for the region’s energy landscape.
