Tanga. Prime Minister Dr Mwigulu Nchemba has issued a stern warning to individuals registering companies in the names of Tanzanians while they are in fact foreign-owned, intending to unlawfully benefit from opportunities arising from the East African Crude Oil Pipeline (EACOP).
The 1,444-kilometre pipeline runs from Hoima in Uganda to Chongoleani in Tanga Region, where crude oil will be received and transported to international markets.
The project is regarded as one of the largest strategic undertakings in East Africa.
The Premier issued the warning on Monday, February 16, 2026, after inspecting the EACOP project at the Port of Tanga, noting that overall implementation had reached 81 percent.
Speaking after the inspection, Dr Nchemba said the government would not hesitate to take firm action against foreigners registering companies under local names to benefit from government incentives, including banning them from operating in the country.
“The objective of local content is to ensure Tanzanians directly benefit from economic opportunities generated by the project, not to allow fraud that deprives citizens of their rightful gains,” he said.
Expressing satisfaction with the pace of implementation, Dr Nchemba said the progress signalled that Tanzania and Uganda were on track in delivering one of Africa’s largest energy projects, expected to boost economic performance and increase revenue for both countries once completed.
He said reaching 81 percent implementation of the $5.65 billion project demonstrated the strong commitment of both governments despite challenges, including the outbreak of Covid-19 and global economic turbulence.
Dr Nchemba added that despite shifts in global economic policies and financial pressures, decisive measures had enabled work to continue while adhering to required quality standards and maintaining original targets.
“The project has made significant progress even during periods when the world faced economic turbulence. This pace continues to earn our country respect and strengthen our brotherhood with Uganda,” he said at the project site in Chongoleani.
Beyond stimulating economic growth, the project is expected to create employment opportunities for Tanzanians and enhance local participation through the Local Content Policy.
Speaking during the visit of Uganda’s President Yoweri Museveni on Saturday, February 7, 2026, President Samia Suluhu Hassan said the first shipment of crude oil transported from Hoima in western Uganda through EACOP to the Port of Tanga was expected to depart in July, marking the operational phase of one of East Africa’s most ambitious cross-border investments.
Prime Minister Mwigulu Nchemba listens attentively to a briefing on the progress of the crude oil pipeline project from Hoima, Uganda, to Chongoleani in Tanga. PHOTO | COURTESY
She said the commencement of oil exports was not an isolated milestone but part of a broader framework of cooperation being built by the two countries to deepen long-term bilateral ties.
She made the remarks after holding talks with her Ugandan counterpart, President Yoweri Museveni, who had arrived earlier that day for a one-day working visit.
The two leaders first held a private meeting before convening bilateral discussions with their respective ministerial delegations and later addressing the media.
The visit marked President Museveni’s first foreign trip since his re-election in Uganda’s January 15, 2026, General Election, securing him a seventh term in office since taking power in 1986.
It was also the first visit by a foreign head of state to Tanzania since the October 29, 2025, General Election that returned President Hassan to office.
President Hassan said discussions between the two sides focused largely on energy and transport infrastructure, reflecting a shared ambition to accelerate economic growth through improved connectivity.
In addition to the crude oil pipeline, the two countries discussed construction of a natural gas pipeline from Tanzania to Uganda, as well as a refined petroleum products pipeline from Uganda to Tanga.
She said progress on EACOP had reached an advanced stage, boosting confidence that the first tanker would leave Tanga in July.
“We thank God for the progress we have made. The first ship is likely to depart from Tanga carrying crude oil to the market. There are other issues we are still working on,” said President Hassan.
Cooperation in ports and logistics also featured prominently in the talks, underscoring Tanzania’s role as a key maritime gateway for landlocked countries in the region.
President Hassan said the two countries discussed expanded use of the ports of Dar es Salaam, Tanga and Mtwara to support trade flows and energy exports, particularly as oil shipments begin.
She noted that investments in port infrastructure were intended to match growing regional demand and ease logistical bottlenecks.
