New optimism will buoy Uganda-Tanzania energy sectors

Significance

With a budget of USD3.5bn, the 1,400-kilometre pipeline project linking the western city of Hoima in Uganda to Tanzania’s Tanga port should bring significant economic benefits to both countries. However, questions remain over how the project will be funded, amid intense pressure on banks from activist groups over environmental concerns.

Impacts

• The process of compensating landowners along the pipeline route is ongoing and is expected to proceed smoothly.
• The construction process will create employment opportunities for skilled, semi-skilled and unskilled labourers.
• The construction phase will also see an influx of expatriates into both countries.