Tanzania and Uganda have come to an agreement to export oil. A US firm known as Gulf Interstate Engineering has involvement in the project. The oil pipeline will run through both African countries and could generate higher revenue for both states. Kenya also is becoming a major area for investors. The pipeline deal was a total of 3.55 billion dollars between Uganda and Tanzania. Kenya initially wanted to collaborate with Uganda, but there are security challenges involving Somalia as well as the problem of distance and location. Uganda wants to get its crude oil exported more efficiently to international markets. Most of the crude reserves are in the Western region and were discovered in 2006. There is an issue that this new found project will not translate to increase employment opportunities or socioeconomic advancement of the people living in these countries. French, British, and American firms are seeking contracts, but there is the possible threat of economic imperialism. If this project goes on schedule, crude production should begin as soon as 2020. It is important that African nations develop firms of their own and use revenue to reduce national debt. Projects that involve economic collaboration between African states are necessary for the continent's stability and welfare.
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