Uganda Nears Completion of $5 Bln East Africa Crude-Oil Pipeline — Export Vision Moves Forward
Three-quarters of the pipeline built; oil exports expected to begin next year
KAMPALA,UGANDA.
Uganda has announced that about three-quarters of the planned US$5 billion crude-oil pipeline — designed to carry oil from the western Albertine fields to export terminals via Tanzania — is now complete, according to the national regulator. The project, long delayed by funding, logistics and environmental scrutiny, is now advancing rapidly. Officials say they expect to complete construction and begin export operations by the second half of next year.
The pipeline has been touted as a potential game changer for Uganda’s economy. Once operational, it could unlock revenue from oil exports, provide foreign exchange, facilitate infrastructure reinvestment, and create jobs. Government planners insist that oil earnings will support national development projects and help diversify the economy beyond agriculture.
Yet critics and civil-society organisations continue to raise environmental, social and governance concerns. They warn of risks to communities along the pipeline route, notably land acquisition disputes, ecosystem damage, and long-term dependency on fossil-fuel revenues in a world shifting toward greener energy.
International oil-market volatility adds another layer of uncertainty: a sudden drop in global crude prices could undermine revenue projections, while regional security, regulatory compliance, and export-infrastructure readiness remain critical.
Why it matters
This pipeline represents perhaps Uganda’s largest single-infrastructure leap toward transforming natural-resource wealth into national development. If managed well, oil exports could fund roads, energy, education and public services. Poor governance or price shocks, however, could saddle the country with debt and environmental costs — shaping Uganda’s economic trajectory for decades.
What to watch for
Closely follow final-phase construction updates, land-compensation disputes, release of environmental-impact compliance reports, and terms under which oil revenue will be distributed. Also monitor global oil-price trends and regional export logistics — both will influence how much benefit Uganda actually gains.
