Tanzania and Uganda have signed a new energy cooperation agreement aimed at improving regional energy links, attracting investment and supporting long-term energy security across East Africa.

The Memorandum of Understanding (MoU), signed at State House in Dar es Salaam on Aug. 6, 2026, brings the two countries closer in their efforts to develop energy infrastructure, improve distribution systems and expand cross-border energy trade.

The agreement comes as East African economies look for new ways to meet growing electricity demand, support industrial development and improve access to reliable energy.

Tanzania’s Tanga Region is expected to play a key role in the project, with officials describing it as a potential centre for energy-related activities serving both local and regional markets.

The signing ceremony was witnessed by Tanzanian President Samia Suluhu Hassan and Ugandan President Yoweri Museveni.

Tanzania was represented by Energy Minister Deogratius Ndejembi, while Uganda was represented by Energy and Mineral Development Minister Dr. Monica Musanza.

Energy infrastructure and regional trade

The partnership is expected to focus on expanding energy storage capacity, strengthening distribution infrastructure and creating opportunities for greater cooperation between Tanzania and Uganda.

The project could also support increased movement of energy products and services across East Africa.

Officials said the agreement would help deepen economic ties between the two countries while supporting regional efforts to build a more connected energy market.

Improved infrastructure could provide new opportunities for businesses and investors looking to participate in East Africa’s growing energy sector.

Tanga’s role in East Africa’s energy plans

Tanga is expected to become an important location for energy activities because of its coastal position and links to regional trade routes.

The development could help strengthen Tanzania’s role in supplying energy-related services to neighbouring countries, including Uganda.

Bahrain-based Vitol Bahrain E.C., the project investor, participated in the signing ceremony, highlighting private sector interest in supporting energy infrastructure development in the region.

Vitol Bahrain E.C. is part of Vitol Group, one of the world’s largest independent energy trading companies.

The group operates across global energy markets, providing trading, logistics and investment services in areas including oil, gas and energy infrastructure.

The Tanzania-Uganda agreement reflects a wider push by East African governments to attract investment and build stronger energy networks that can support economic growth and regional cooperation.