Tanzania is a strategic partner of Uganda in many areas, particularly trade, security, education, agriculture and energy.
Tanzania and Uganda are both founding members of the East African Community (EAC) and maintain well diplomatic relations. Tanzania has an embassy in Kampala and Uganda also has an embassy in Dar es Salaam.
In 2013, Tanzania exports to Uganda reached USD62.2m worth of goods (mainly machinery, agriculture products and medicines), while imports reached USD62.6m worth of goods from Uganda (mainly corn and telecommunication equipment).
Uganda-Tanzania Crude Oil Pipeline
The Uganda–Tanzania Crude Oil Pipeline (UTCOP)/East African Crude Oil Pipeline (EACOP) is a proposed pipeline to transport crude oil from Uganda’s oil fields to Tanga, Tanzania, a port on the Indian Ocean.
The pipeline will be 1,443km long with the capacity of carrying 200,000 barrels per day and has a total cost of USD3.55b.
Currently (2016), Uganda is planning the construction of an oil refinery as part of the UTCOP project.
The Uganda refinery will be built to process the oil needed locally and regionally, while the rest will be exported via EACOP to the Indian Ocean.
Tanzania has committed to pay USD150.4m for 8% ownership in the refinery. The Government will be involved in its construction through Public Private Partnerships (PPPs) with the private sector.
The project is worth USD2.5b. A private consortium will own 60% of the refinery.
Uganda has allocated the remaining 40% of the shares to the EAC member states of Burundi, Kenya, Rwanda, Tanzania, and Uganda itself.