East African oil reserves
HABARI DAILY I Kampala, Uganda I East African countries are being urged to urgently develop strategic reserves of crude oil, natural gas, and refined petroleum products as the region seeks to transition from heavy reliance on imports to becoming energy-independent, producing economies.
Energy experts and policymakers say the region’s vast untapped resources—combined with growing demand for fuel—present a unique opportunity to strengthen economic resilience, stabilize prices, and power industrial growth.
According to the Energy Regulators Association of East Africa, East Africa holds significant energy potential, including over 4.7 billion barrels of oil reserves concentrated in Uganda’s Lake Albert basin and Kenya’s northern fields. In addition, the region boasts more than 70 trillion cubic feet of natural gas, with major discoveries in Tanzania and Mozambique.
Despite this wealth, the region remains heavily dependent on imported refined petroleum products such as diesel and petrol.
Resource rich region
“The paradox of East Africa is that while we are resource-rich, we remain import-dependent for refined fuels,” the Energy Regulators Association of East Africa noted. “Developing strategic reserves of ultra-low sulfur diesel and petrol is critical to cushioning our economies from global shocks and ensuring consistent supply.”
The association emphasized that investments in domestic refining capacity are essential to meet modern environmental standards, particularly the production of low-sulfur fuels, while reducing reliance on costly imports.
Equally critical is the development of infrastructure to support production and transportation. Projects such as the East African Crude Oil Pipeline (EACOP), a 1,443-kilometre pipeline designed to transport Uganda’s crude oil to international markets via Tanzania, are seen as key to unlocking the region’s export potential.
Regional cooperation is also central to the strategy, with Kenya and Tanzania serving as major logistical hubs while Uganda emerges as a future oil exporter.
Experts additionally recommend that East African Community member states build fuel reserves capable of sustaining national demand for at least two to three months. Diversifying supply routes through both Mombasa and Dar es Salaam ports is also seen as vital in mitigating supply disruptions.
Kenya’s Energy Cabinet Secretary Opiyo Wandayi announced active plans for a strategic petroleum reserve, addressing a current lack of a national fuel buffer.
“These reserves aim to ensure energy security, stabilize supply during crises, and mitigate the impact of international oil market fluctuations,He said in a recent media interview.
Price instability
Speaking from the point of view of the ongoing Middle East conflict which has resulted into a rise in global oil prices, Simon Mulongo, a governance and security consultant, warned that global geopolitical tensions underscore the urgency of such preparations.
“In a fragmented world, resilience will not come from reacting after the price has already risen at the pump. It will come from preparation,” Mulongo said.
He pointed to Uganda’s widening trade deficit as a reflection of the country’s vulnerability to fuel import costs. In 2024, Uganda exported goods worth $8.89 billion but imported $11.78 billion, leaving a deficit of nearly $2.9 billion.
“A large portion of these imports is fuel. Uganda alone spends roughly $2.11 billion each year on refined petroleum, which translates to about $176 million every month,” Mulongo explained.
Uganda’s vulnerability
He warned that any disruption in global oil supply routes could have immediate and severe consequences. “If fuel prices rise even briefly, Uganda would need an extra $176 million in foreign exchange within a single month,” he said.
Mulongo further highlighted the logistical challenges of a landlocked economy, noting that over 90 percent of Uganda’s imports pass through Mombasa before traveling approximately 1,200 kilometres by road to Kampala.
“Higher fuel costs quickly push up transport and food prices, affecting households and businesses alike,” he added.
Analysts say that by investing in strategic reserves, refining capacity, and infrastructure, East Africa can reduce exposure to global shocks and harness its natural resources to fuel sustainable economic growth.
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