Why Uganda’s oil export process delayed

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OPINION

By Carolyne Muyama

Last week, President Yoweri Kaguta Museveni met with President Samia Suluhu Hassan of Tanzania in Dar es Salaam. The main topic of their talks was the East African Crude Oil Pipeline, a project that will transport Uganda’s crude oil to the Indian Ocean. That meeting was more than just diplomacy; it served as a reminder of why Uganda chose patience, planning, and partnership over rushing into exports. At this meeting, President Samia Suluhu Hassan announced that the first shipment of crude oil from Hoima in western Uganda to the Port of Tanga in Tanzania would depart in July 2026.

Uganda is a landlocked country. Our oil lies deep in the Albertine Graben near Lake Albert, far from the sea and distant from global markets. For Uganda to sell oil worldwide, it needed a safe and reliable route to the ocean. Tanzania provided exactly that through the Port of Tanga. This was not an accident; it was a deliberate choice. Uganda needed a neighbour it could trust, and Tanzania stepped forward as a partner.

The crude oil pipeline runs approximately 1,443 kilometers from Hoima to Tanga, mostly passing through Tanzania. The Tanzanian government provided land, security, legal assistance, and infrastructure support to enable the project. Through its national oil company, Tanzania also took ownership of the pipeline, which helped attract financing and reassured investors that the route would stay stable for decades. Communities along the pipeline are already experiencing new roads, jobs, and business opportunities. What started as an oil project is quickly transforming into a regional development corridor.

The export process will be managed by the East African Crude Oil Pipeline Company, also known as EACOP Ltd. This company was created specifically to design, build, and operate the pipeline. It includes experienced international and national partners. TotalEnergies is the primary investor and technical operator. China National Offshore Oil Company is another important partner. Uganda takes part through the Uganda National Oil Company, while Tanzania is represented by its petroleum corporation. This setup allows Uganda to collaborate with companies that have the technology, capital, and global experience needed to transport oil safely, while still protecting national interests.

It is crucial for Ugandans to understand that these companies do not own Uganda’s oil. The oil belongs to the people of Uganda, as outlined in the Constitution. The companies are contractors and investors who assist in producing and transporting it. Under production-sharing agreements, the government receives revenue through royalties, taxes, and a direct share of the oil produced. Uganda also benefits from UNOC’s ownership stake in the projects. This means the country earns revenue from multiple sources. The better the project performs, the more Uganda profits.

When exports start, Uganda’s crude will mainly aim for fast-growing markets in Asia, especially China and India. These countries have large refineries that are well-suited to process Uganda’s waxy crude and maintain strong, steady demand. Shipping through Tanga gives Uganda direct access to the Indian Ocean, making the route shorter, safer, and more cost-effective. This boosts competitiveness and helps secure better prices for our oil.

Some Ugandans have questioned why it has taken so long. But oil is not like selling coffee or fish. Oil projects require significant investment, strict environmental safeguards, and long-term agreements that can impact the country for generations. Rushing could have cost Uganda billions.

The government chose instead to first establish strong laws, build capable institutions such as the Petroleum Authority of Uganda, strengthen the national oil company, and ensure Ugandans would benefit from local jobs and services. These steps took time, but they minimised risks and protected the national interest. This demonstrates the importance of having a visionary leader like President Yoweri Kaguta Museveni, who resisted pressure from Ugandans and other stakeholders not to rush the process.

At the same time, Uganda decided not to export only raw crude. The refinery in Hoima is designed to process some of the oil locally. Refining it at home will lower fuel imports, generate jobs, and support industries that rely on petroleum products. It is a strategy aimed at adding value, not quick profits.

Ultimately, what some considered a delay was actually preparation. Today, Uganda has a secure export route, trusted partners, transparent profit-sharing systems, and strong regional collaboration. The foundation is solid. That is what instills confidence in investors and hope in citizens.

Oil alone cannot solve every problem. However, when managed carefully, it can fund roads, hospitals, schools, and factories. It can strengthen the economy and create opportunities for young people. That's why patience was important. President Museveni’s steady and cautious leadership made sure Uganda didn't rush blindly. Instead, the country prepared properly.

Uganda’s oil story is not about delays but about discipline. That discipline will help transform our natural resources into lasting national wealth for future generations.

The writer works with the Uganda Media Centre