Uganda and Tanzania will seek to finalize matters concerning energy sector as they sign the Memorandum of Understanding (MoU) in the ongoing Uganda-Tanzania Joint Permanent Commission (JPC) Ministerial meeting in Uganda's capital, Kampala. Recently, the two countries agreed to work closely to support the energy sector, with Tanzania ready to supply natural gas to Uganda.
The East African countries held talks over building a pipeline to pump its liquefied petroleum gas to facilitate the export of the energy source. The gas reserves in Tanzania have caught the eye of investors and should see the sector bloom and blossom the country's economy. The pipeline should cement the healthy bilateral relations the two nations have had and expand their energy cooperation.
They intend to discuss ways to strengthen the transport sector for effective transportation of goods and people. The topic is vital to sustain trading activities betwixt them and open more business opportunities to expand their business environments. On-time delivery of commodities needs reduced traffic snarly up and policies that could hinder the flow of goods on road. Better security measures on the borders as well should stellar their trade relationship.
The energy sector in East Africa has been termed as the most exciting prospect in the economy and a lucrative business opportunity to invest in. Oil exploration has borne fruits with the discovery of new reserves. Their presence has a great ability to transform a country's status.
Uganda on the other end has iron ore which the Government looks to utilize for the steel and iron industry. It is the backbone of the industrialization in the country with its contribution to the economy regarded as important. In order to develop the sector more and make it attractive, natural gas from Tanzania would be beneficial. Improvement on the same could see the Government rake in a substantial amount of revenue.