UGANDA, Kampala | Real Muloodi News | Uganda has acquired top-quality land in Tanga, Tanzania. Ugandan officials will be stationed in Tanga to help ease the oil business between the two countries. The advance focuses on strengthening Uganda’s infrastructure diplomacy in the East African region and Southern Africa.
The development is a huge leap forward for land-locked Uganda that will use Tanga, a seaport city, about 200km north of Dar es Salaam, to export its crude reserves to offshore markets.
The purchase of the land in Tanga comes when Tanzania and Uganda are expediting plans to construct the 1,443km, 24-inch diameter heated and buried crude oil pipeline from Kabaale, Hoima in western Uganda Chongoleani, Tanga in Tanzania. Once completed, the pipeline will be the longest heated crude oil pipeline in the world.
Uganda National Oil Company (UNOC) Corporate Affairs director, Peter Muliisa, says the country “will need a presence in Tanga because we will do a lot of work there concerning trading of crude and overseeing supervisory activities of pipeline.”
Melissa said UNOC plans to build an office in Tanga before oil production starts.
“Yes, it is true, our mission requested and acquired this strategic land at Tanga where the East African crude oil export pipeline will end,” said Uganda’s High Commissioner to Tanzania, Ambassador Richard Kabonero. “Currently, we are processing titles for this land at Amboni Mwanyungu,” he said.
The ambassador said Uganda could use the land acquired in Tanga, valued at US$ 1million, to construct warehouses and other structures.
The recent signing of key agreements to the oil pipeline and the resulting surge in oil explorers’ procurement budgets have also led to a real estate boon in Uganda, raising hopes of recovery in the country’s real estate industry, hard hit by the Coronavirus pandemic.
Since the pandemic broke out last year, the industry has struggled with low occupancy rates, widespread tenant defaults, and bank foreclosures.
Latest Petroleum Authority of Uganda (PAU) data reveals the number of local housing units taken up by oil and gas industry players increased from 40 last year to 200 by the end of March 2021. This is a sign of renewed housing demand, business opportunities for property owners and better returns on investment.
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