News / Economy

    Uganda Agrees to Plan for Oil Pipeline to New Kenya Port

    Three East African presidents, (from R) Uhuru Kenyatta of Kenya, Yoweri Museveni of Uganda and Paul Kagame of Rwanda, hold a joint news conference soon after their meeting in Entebbe, 36km (22 miles) southwest of the capital Kampala, June 25, 2013.
    Three East African presidents, (from R) Uhuru Kenyatta of Kenya, Yoweri Museveni of Uganda and Paul Kagame of Rwanda, hold a joint news conference soon after their meeting in Entebbe, 36km (22 miles) southwest of the capital Kampala, June 25, 2013.
    Reuters
    Uganda has agreed to a plan to build a pipeline from its oilfields to a new port being developed on Kenya's northern coast, Uganda's foreign minister said on Tuesday, enabling crude exports and boosting its oil industry.
     
    The pipeline to Kenya's Lamu port, where work on berths is starting, would also provide a route to export crude oil from South Sudan, which now relies on a pipeline through its northern neighbor Sudan. Rows between the two have disrupted flows.
     
    Uganda, Kenya and other East African states want to capitalize on a string of oil and gas finds across the region that could make the area a major energy exporter. But production has been delayed, partly due to questions of export routes.
     
    Another project agreed by the presidents of Uganda, Kenya and Rwanda, who all met in the Ugandan capital, will involve extending to Uganda and Rwanda an existing pipeline running from Kenya's Mombasa port that now stops inside Kenya.
     
    “It was agreed that we develop two oil pipelines - one pipeline that currently exists and brings products from Mombasa to Eldoret [in Kenya] should be extended to Kampala and Rwanda,” Ugandan Foreign Minister Sam Kutesa told a news conference after the summit between Uganda's Yoweri Museveni, Kenya's Uhuru Kenyatta and Rwanda's Paul Kagame.
     
    He did not provide figures for the date or the cost of completing the projects.
     
    South Sudan previously put the price of a pipeline to Lamu at $3 billion.
     
    Extending the Mombasa-to-Eldoret produce pipeline to Uganda was previously estimated to cost $300 million.
     
    The product pipeline will be upgraded to allow the flow both ways, the minister said. For now, oil products only flow from Mombasa. Uganda, which plans to start crude output by 2016, aims to build a 30,000 barrel per day refinery by 2016/17.
     
    “Another pipeline will be constructed and will be for evacuation of crude oil when it starts flowing, and this again will be done between Uganda, South Sudan and Kenya, ending up at the port of Lamu,” the minister said.
     
    That project could boost plans for Lamu, which Kenya wants to act as an oil terminal and a port with transport links to landlocked South Sudan and Ethiopia. It would also relieve pressure on Mombasa port, the main regional gateway.
     
    South Sudan, which now exports crude through Sudan to the Red Sea, previously discussed a pipeline through Kenya as well as a route through Ethiopia to Djibouti.
     
    Kenya has already awarded a contract to a Chinese firm to build the first three berths at Lamu.
     
    Uganda, Kenya and Rwanda also agreed to revamp an existing railway network and extend it to Rwanda and discussed power cooperation, the minister said, adding the three states would meet every two months to review progress on all joint projects.

    You May Like

    Hope Remains for Rio Olympic Games, Despite Woes

    Facing a host of problems, Rio prepares for holding the games but experts say some risks, like Zika, may not be as grave as initially thought

    IS Use of Social Media to Recruit, Radicalize Still a Top Threat to US

    Despite military gains against IS in Iraq and Syria, their internet propaganda still commands an audience; US officials see 'the most complex challenge that the federal government and industry face'

    ‘Time Is Now’ to Save Africa’s Animals From Poachers, Activist Says

    During Zimbabwe visit, African Wildlife Foundation President Kaddu Sebunya says poaching hurts Africa as slave trade once did

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    Ivorian Chocolate Makers Promote Locally-made Chocolatei
    X
    July 29, 2016 4:02 PM
    Ivory Coast is the world's top producer of cocoa but hardly any of it is processed into chocolate there. Instead, the cocoa is sent abroad to chocolate makers in Europe and elsewhere. This is a general problem throughout Africa – massive exports of raw materials but few finished goods. As Emilie Iob reports from Abidjan, several Ivorian entrepreneurs are working to change that formula - 100 percent Ivorian chocolate bar at a time.
    Video

    Video Ivorian Chocolate Makers Promote Locally-made Chocolate

    Ivory Coast is the world's top producer of cocoa but hardly any of it is processed into chocolate there. Instead, the cocoa is sent abroad to chocolate makers in Europe and elsewhere. This is a general problem throughout Africa – massive exports of raw materials but few finished goods. As Emilie Iob reports from Abidjan, several Ivorian entrepreneurs are working to change that formula - 100 percent Ivorian chocolate bar at a time.
    Video

    Video Tesla Opens Battery-Producing Gigafactory

    Two years after starting to produce electric cars, U.S. car maker Tesla Motors has opened the first part of its huge battery manufacturing plant, which will eventually cover more than a square kilometer. Situated close to Reno, Nevada, the so-called Gigafactory will eventually produce more lithium-ion batteries than were made worldwide in 2013. VOA's George Putic reports.
    Video

    Video Polio-affected Afghan Student Fulfilling Her Dreams in America

    Afghanistan is one of only two countries in the world where children still get infected by polio. The other is Pakistan. Mahbooba Akhtarzada who is from Afghanistan, was disabled by polio, but has managed to overcome the obstacles caused by this crippling disease. VOA's Zheela Nasari caught up with Akhtarzada and brings us this report narrated by Bronwyn Benito.
    Video

    Video Hillary Clinton Promises to Build a 'Better Tomorrow'

    Democratic presidential candidate Hillary Clinton urged voters Thursday not to give in to the politics of fear. She vowed to unite the country and move it forward if elected in November. Clinton formally accepted the Democratic Party's nomination at its national convention in Philadelphia. VOA national correspondent Jim Malone has more.
    Video

    Video Trump Tones Down Praise for Russia

    Republican presidential candidate Donald Trump is toning down his compliments for Russia and Vladimir Putin as such rhetoric got him in trouble recently. After calling on Russia to find 30.000 missing emails from rival Hillary Clinton, Trump told reporters he doesn't know Putin and never called him a great leader, just one who's better than President Barack Obama. Putin has welcomed Trump's overtures, but, as Zlatica Hoke reports, ordinary Russians say they are not putting much faith in Trump.
    Video

    Video Uganda Unveils its First Solar-powered Bus

    A solar-powered bus described by its Ugandan makers as the first in Africa has made its public debut. Kiira Motors' electric bus, Kayoola, displayed recently at a stadium in Uganda's capital. From Kampala, Maurice Magorane filed this report narrated by Salem Solomon.
    Video

    Video Silicon Valley: More Than A Place, It's a Culture

    Silicon Valley is a technology powerhouse and a place that companies such as Google, Facebook and Apple call home. It is a region in northern California that stretches from San Francisco to San Jose. But, more than that, it's known for its startup culture. VOA's Elizabeth Lee went inside one company to find out what it's like to work in a startup.
    Video

    Video Immigrant Delegate Marvels at Democratic Process

    It’s been a bitter and divisive election season – but first time Indian-American delegate Dr. Shashi Gupta headed to the Democratic National Convention with a sense of hope. VOA’s Katherine Gypson followed this immigrant with the love of U.S. politics all the way to Philadelphia.
    Video

    Video Dutch Entrepreneurs Turn Rainwater Into Beer

    June has been recorded as one of the wettest months in more than a century in many parts of Europe. To a group of entrepreneurs in Amsterdam the rain came as a blessing, as they used the extra water to brew beer. Serginho Roosblad has more to the story.
    Video

    Video Commerce Thrives on US-Mexico Border

    At the Democratic Convention in Philadelphia this week, the party’s presumptive presidential nominee, Hillary Clinton, is expected to attack proposals made by her opponent, Republican presidential nominee Donald Trump, to build a wall along the U.S.-Mexico border. Last Friday, President Barack Obama hosted his Mexican counterpart, President Enrique Peña Nieto, to underscore the good relations between the two countries. VOA’s Greg Flakus reports from Tucson.
    Video

    Video Film Helps Save Ethiopian Children Thought to be Cursed

    'Omo Child' looks at effort of African man to stop killings of ‘mingi’ children
    Video

    Video London’s Financial Crown at Risk as Rivals Eye Brexit Opportunities

    By most measures, London rivals New York as the only true global financial center. But Britain’s vote to leave the European Union – so-called ‘Brexit’ – means the city could lose its right to sell services tariff-free across the bloc, risking its position as Europe’s financial headquarters. Already some banks have said they may shift operations to the mainland. Henry Ridgwell reports from London.

    Special Report

    Adrift The Invisible African Diaspora

    World Currencies

    EUR
    USD
    0.8998
    JPY
    USD
    103.32
    GBP
    USD
    0.7594
    CAD
    USD
    1.3176
    INR
    USD
    66.954

    Rates may not be current.