Ugandan President Yoweri Museveni ended a two-day visit to Tanzania on Saturday, September 7, to strengthen economic relations between the two countries, as French oil company Total announced that the pipeline project between the two countries was suspended due to a fiscal dispute between its partner Tullow and Uganda's tax administration.

The two heads of state participated in a meeting with business leaders and both called for the continuation of this pipeline project which should cost around 3.5 billion dollars and allow Ugandan oil to be exported via Tanzania.

Facing the press, President Magufuli expressed anger at Uganda's tax administration. For the Tanzanian head of state, this pipeline project, nearly 1,500 meters long, is crucial for his country's economy.

"We are supposed to move forward on this matter. In the business world, you cannot win everything. You must learn to sacrifice short-term gains to obtain long-term gains. I decided to speak about it because what is happening hurts me. It is possible to change the finance law or even the tax regime in Parliament in order to allow this pipeline to be installed. People have been deployed to determine its route. Eight Tanzanian villages could benefit directly from this drilling."

Ugandan President Yoweri Museveni sought to reassure his Tanzanian counterpart. "This pipeline will be built. The situation is under control of the Ugandan government. We have reached an agreement with the Tanzanian government. I wanted to thank President Magufuli for the concessions he made to oil companies so that this project could happen. Rest assured that the Ugandan government will not fail in the implementation of this project."

This project dates back to 2006. According to the Tanzanian press, President Magufuli joked by explaining that he would like, when he takes office, to call this pipeline "the Kaguta pipeline," named after Yoweri Kaguta Museveni.