By Mourice Muhoozi
The East African population, majority nationals from Uganda and Tanzania will reap big from the 1445 Km East African Crude Oil pipeline project, run by both nations.
The pipeline, which will take three years of construction, beginning from early 2018, will run from Hoima in Western Uganda to the Tanzanian Indian ocean port Tanga, transporting the former’s crude oil.
With the optimism of many, a great question of the day is, What are the key expected benefits that will be ushered in by the project?
Here is a quick primer.
It is a great project, bolstered by the goodwill, and unwavering support of the two countries’ leaders, that is to say; his Excellency John Pombe Mugufuli of Tanzania, and his Ugandan counterpart, General Yoweri Museveni. This has promoted the spirit of togetherness between them.
While addressing a rally at Kyotera village in Masaka district on November 6th, 2017, Mr.Magufuli urged Ugandan and Tanzanian nationals living across borders to profit from the increasing cooperation between the two countries. This was during the laying of the project’s first foundation stone.
This cooperation will cement smooth relations, among these nationals in the arena of trade and agriculture, fostering development.
On the same rally, he said that he had issued a directive for the removal of roadblocks from Mutukula to Dar Es Salaam. This will aid Ugandan traders to save the money that they would other ways be paying to the Tanzanian authorities in terms of taxes, leading to high savings, which will boost household incomes.
In addition, the Tanzanian government will access revenue inform of taxes, as a result of the crude oil which will pass through the pipeline, that is to say, Uganda will be paying 12.24 US dollars for every barrel.
It will also boost the swift movement of goods across Dar Es Salaam to other countries like southern Sudan, Burundi, among other East African countries. This is because trucks will no longer spend many days seeking for clearance from authorities.
It also implies that a Tanzanian can move freely into Uganda, seek partnership and vice-versa.
The project will also bolster the improvement of transport and communication infrastructure.
It is phenomenal to assert that the Ugandan government, according to the ministry of finance in figures is planning to spend about $900 million in the construction of infrastructure, which include roads and an international airport in the oil well areas in the western part of the country to aid oil trade.
This will not only bolster trade, but also the swift movement of people among the boarders of the country.
Speaking during the signing of a legal frame work agreement between the two countries on May 5th 2017 in Kampala, the Tanzania minister for legal and constitutional affairs Mr.Palamagamba Kabundi noted that the establishment of the project will open the region for other opportunities, which will in turn foster social- economic development.
Most importantly, the project will also lead to creation of jobs for nationals from both countries, which will boost house hold incomes, leading to high standards of living.
For instance, it is estimated that during the construction stage, the project will generate an approximate 1000 jobs for the young energetic people.