EACOP Pipeline Positions Tanzania as a Regional Energy Hub

TANGA, Tanzania – Tanzania is rapidly emerging as a strategic energy corridor in East Africa as the East African Crude Oil Pipeline (EACOP) moves forward under construction. Stretching 1,443 kilometers from Uganda’s Lake Albert oilfields to the port of Tanga, the $5–6 billion project is transforming local economies, creating jobs, and reinforcing Tanzania’s role as a regional gateway for energy exports.

The pipeline establishes Tanzania as a vital transit hub, connecting Uganda’s oil production to global markets while driving investment, infrastructure development, and regional economic integration.

Driving Growth and Investment

EACOP is already generating substantial economic activity. With the pipeline valued at nearly 7% of Tanzania’s annual GDP, construction stimulates the economy through thousands of direct jobs and a wider network of indirect employment in logistics, hospitality, and service sectors. Local suppliers and small businesses are benefiting from increased demand for materials, transport, and accommodation.

Fiscal gains are also significant. Tanzania receives $12–15 per barrel in transit fees, translating into hundreds of millions of dollars annually. These revenues are strengthening government budgets, boosting foreign reserves, and creating financial space for public investment in infrastructure, health, and education.

The project is also accelerating strategic infrastructure development. Roads, bridges, storage facilities, and Tanga port upgrades are being implemented in tandem with the pipeline, creating long-term assets that will support trade, industry, and tourism beyond the energy sector.

Regional Leadership in Energy

EACOP is a transformative project for East Africa. It unlocks Uganda’s 1.4 billion barrels of oil, enabling the country to enter global markets while positioning Tanzania as a central transit and logistics hub.

The pipeline enhances Tanzania’s regional influence and attracts foreign direct investment. International energy firms and service providers are investing alongside the pipeline, bringing advanced technologies, skills, and expertise that support broader economic development.

Communities along the route are already experiencing positive impacts. Local employment, small-business opportunities, and infrastructure improvements are strengthening regional economies, demonstrating how large-scale energy projects can create broad-based benefits.

A Strategic Economic Opportunity

EACOP provides a platform for Tanzania to reinforce its economic growth, competitiveness, and industrial development. Key opportunities include:

• Local content development: Expanding employment, supplier networks, and skills training for Tanzanians.
• Industrial growth: Leveraging infrastructure improvements to support manufacturing, logistics, and trade.
• Regional trade integration: Strengthening Tanzania’s role as a gateway for energy and trade flows in East Africa.
• Sustainable fiscal gains: Using transit revenues strategically to invest in development and attract further investment.

Positive Outlook

As construction progresses, EACOP is already generating momentum that extends far beyond the energy sector. It strengthens public finances, accelerates infrastructure development, and creates a platform for private-sector growth.

The pipeline also signals Tanzania’s commitment to being a reliable partner for international investors. Its strategic position, stable regulatory environment, and integration into regional trade networks make it an attractive destination for foreign direct investment, particularly in energy, logistics, and industrial development.

With EACOP, Tanzania is not only facilitating East Africa’s energy ambitions but is also charting a path for sustainable economic growth, job creation, and regional leadership. For investors, the message is clear: Tanzania’s economy is opening doors to new opportunities, and the pipeline is just the beginning.