KEY POINTS
- Tanzania PM warns foreign-owned firms posing as local companies in EACOP project.
- EACOP construction reaches 81 percent completion.
- First crude shipment from Tanga expected in July.
Tanzania’s Prime Minister Mwigulu Nchemba has warned that the government will take firm action against companies falsely registered as local entities to exploit opportunities linked to the East African Crude Oil Pipeline project.
Speaking on February 16, 2026, after inspecting works at the Port of Tanga, Nchemba said authorities had identified cases where foreign investors registered firms in the names of Tanzanians to gain access to incentives reserved for local businesses.
The 1,444 kilometre pipeline runs from Hoima in western Uganda to Chongoleani in Tanzania’s Tanga Region, where crude oil will be loaded for export to global markets. The project is valued at about 5.65 billion dollars and is one of the largest infrastructure investments in East Africa.
Government vows to protect local content
Nchemba said the objective of the local content policy was to ensure Tanzanians benefit directly from economic opportunities created by the pipeline.
He said the government would not hesitate to ban companies found violating the rules.
“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.
The prime minister expressed satisfaction with the pace of construction, noting that implementation had reached 81 percent. He said the progress reflected strong commitment by both Tanzania and Uganda despite disruptions caused by the Covid 19 pandemic and wider global economic turbulence.
Pipeline nears operational phase
Nchemba said the steady progress signaled that both countries were on track to deliver a project expected to boost revenues and support broader economic growth.
President Samia Suluhu Hassan earlier said the first shipment of crude transported through the pipeline from Hoima to Tanga is expected to depart in July, marking the start of operations.
She made the remarks on February 7, 2026, during a one day working visit by Uganda’s President Yoweri Museveni. The two leaders held private talks before meeting with ministerial delegations and later addressing the media.
Hassan said the launch of oil exports would represent more than a commercial milestone. She described it as part of a wider framework of cooperation between the two countries.
Broader regional cooperation in focus
Talks between the two sides also covered additional energy and transport links. Among the proposals discussed were a natural gas pipeline from Tanzania to Uganda and a refined petroleum products pipeline from Uganda to Tanga.
Port development featured prominently as well, with Tanzania positioning Dar es Salaam, Tanga and Mtwara as key gateways for regional trade and energy exports.
Museveni’s trip marked his first foreign visit since his re election in January 2026 for a seventh term. It was also the first visit by a foreign head of state since Hassan’s re election in October 2025.
