Uganda, Tanzania to see 60% increase in FDI due to oil - PSFU
What you need to know:
- The East African Crude Oil Pipeline, which runs from Lake Albert to the Tanzanian port of Tanga, he said, will create more than 5,000 jobs, and could create a further indirect 20,000 jobs
Private Sector Foundation of Uganda (PSFU) has said Uganda and Tanzania will see an increase of more than 60 per cent in Foreign Direct Investment just within the construction phase of East African Crude Oil Pipeline project.
Speaking at the launch of the Tanzania-Uganda Oil and Gas symposium due in Dar-es-Salaam, Dr Elly Karuhanga, the PSFU chairman, said the symposium which will run under the enhancing private sector participation in the oil and gas sector, is an undertaking that is expected to see investment in the oil and gas projects total to $20b, with the pipeline alone, standing at more than $3.5b.
The East African Crude Oil Pipeline, which runs from Lake Albert to the Tanzanian port of Tanga, he said, will create more than 5,000 jobs, and could create a further indirect 20,000 jobs.
“Therefore, communication is vital to bring local companies up to speed with what is required of them to participate in this oil and gas sector,” he said.
The governments of Uganda through Ministry of Energy in April signed the pipeline project with Tanzania to export the country’s crude oil through port of Tanga.
Ms Betty Namubiru, the Petroleum Authority of Uganda manager national content, said, the first aspect is progression from exploration to development of discovered oil and gas fields which have already seen a foreign direct investment of $3.5b to date and planned total investment of $9b to support development of discovered oil fields.
“The second aspect is phased construction of a crude oil refinery at Kabaale, Hoima were currently front to end engineering design is being undertaken with an estimated cost of $ 4b,” she said, noting that government had started to acquire land for construction of 1,443 km long crude export pipeline from Hoima to Tanga.