Insurers from Tanzania and Uganda have agreed to form a consortium that will ensure that five percent of premiums are retained locally under local content in the East Africa Crude Oil Pipeline (Eacop).
This comes as actual construction of the Eacop is slated to begin in July, this year and first oil output is anticipated in 2025.
Uganda Association of Insurers (UAI) and Association of Tanzania Insurers (ATI) said at the weekend that globally, oil firms would prefer to do everything offshore as many have their own insurance companies.
“The consortium will enable us to speak the same language. We insure oil and gas for the first time so we didn’t have enough necessary skills. The percentage agreed is five percent of retention and we will work closely together on this,” said the chairman for UAI, Mr Latimer Mukasa.
Mr Mukasa was speaking in Dar es Salaam at the weekend when the two associations met for the purpose of discussing ways of working together.
“We had a very good day. We met with Tanzania Insurance Regulatory (Tira), National Insurance Corporation (NIC) and Tanre because those are key players in this project,” he said.