Tanzania and Uganda have signed an agreement to build a 16 MW hydropower plant on the Kagera River on the border between the two east African countries.

The joint venture project between the member states of regional trade bloc the East African Community (EAC) is expected to start early next year, according to Reuters.

“The power house will be located on the Ugandan side while the reservoir will cover both partner states,” EAC said in a statement.

A drought in east Africa has hit hydroelectric production and aggravated blackouts in Tanzania that have hit its economic growth.

For more Africa news click here