Uganda expects to receive its first crude oil export revenues in February or March 2027, as the country moves closer to commercial petroleum production and prepares to connect its oilfields to international markets through Tanzania.
Bank of Uganda Governor Michael Atingi-Ego said commercial crude production could begin during the 2026/2027 financial year. However, export earnings are expected to follow later because transporting crude through the cross-border pipeline network to Tanzania’s coastal port of Tanga will take approximately three months.
The anticipated revenues could provide additional foreign exchange and help ease pressure on Uganda’s external accounts as the country continues to finance imports and manage a widening current account deficit.
Pipeline progress supports export timeline
The East African Crude Oil Pipeline (EACOP) is a central part of Uganda’s export strategy. The pipeline is designed to transport crude from Uganda’s oilfields to Tanga, where the oil can be shipped to international buyers.
According to project figures cited in the report, EACOP was 93% complete as of 1 October 2026. The project is progressing towards receiving its first crude oil in early 2027, supporting the anticipated start of export shipments.
The pipeline will provide landlocked Uganda with a direct route to the Indian Ocean, allowing the country to export petroleum without relying on conventional road transport for long-distance crude movements.
External deficit increases pressure on foreign exchange
Uganda’s current account deficit widened by 43.8%, reaching US$4.6 billion, an increase of approximately US$1.4 billion, according to the report.
Central bank analysts attributed the deterioration to weaker agricultural export volumes, higher international oil import costs and rising global freight charges.
The start of crude exports could help improve foreign exchange inflows, although the extent of the benefit will depend on production levels, international oil prices, export volumes and the timing of payments.
Oil revenues mark a new phase for Uganda
The expected export income represents a significant milestone in Uganda’s efforts to develop its petroleum industry and diversify its sources of export earnings.
However, the anticipated February–March 2027 revenue timeline remains dependent on the commencement of commercial production, pipeline readiness and the movement of crude to the export terminal.
For Uganda, converting its oil resources into sustained economic benefits will depend not only on successful exports but also on effective revenue management and the development of other productive sectors, including agriculture and manufacturing.