Tanzania and Uganda are working to strengthen economic cooperation through trade, investment, energy and infrastructure initiatives, with bilateral trade between the two countries reaching 406.8 million US dollars in the 2024/25 financial year. The deepening relationship was highlighted during celebrations marking Uganda's 64th Independence Anniversary in Dar es Salaam, where Tanzania's Minister of State in the Prime Minister's Office (Policy, Parliament, Coordination and Persons with Disabilities), Prof Palamagamba Kabudi, represented the Minister for Foreign Affairs and East African Cooperation.
Two flagship projects underscore the strategic importance of the partnership. The East African Crude Oil Pipeline (EACOP) is 92 per cent complete, while both countries have agreed to develop Tanga as a regional energy hub. Prof Kabudi said these initiatives demonstrate the growing strategic importance of cooperation between the neighbouring countries and reflect the two nations' longstanding ties rooted in good neighbourliness, brotherhood and economic cooperation.
The Fifth Session of the Joint Permanent Commission (JPC), held in March 2026, has provided fresh momentum for translating bilateral agreements into tangible benefits for citizens in both nations. Ugandan High Commissioner to Tanzania, retired Colonel Fred Mwesigye, acknowledged Tanzania's historical contribution to strengthening economic, social and regional cooperation, dating back to liberation struggles in Africa. He reaffirmed Uganda's commitment to working with Tanzania to expand trade and investment and implement strategic projects for the benefit of citizens in both countries and the wider East African Community.
For savers, borrowers, business owners and investors in Tanzania, the expanded trade relationship and infrastructure projects offer opportunities for economic growth and cross-border business expansion, though benefits will depend on successful project implementation and trade facilitation.