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The two countries have also qualified for the U-17 African Cup of Nations tournament.
Uganda U17 has qualified for the Central and East African Council of Football Associations (Cecafa) U17 championship after beating Djibouti by a solitary goal in the semi-final on Sunday.
Oscar Mawa scored the Cubs’ only goal to break the hearts of his opponents.
Uganda entered the match as favorites due to their hot streak in the annual competition.
Djibouti was the surprising semi-finalist given that they had qualified out of the favorite teams that were poised to progress in the youth tournament.
A 1-1 draw against Tanzania, which is their second such result in Group B, was enough to seal their place. In their first match, they had held Rwanda, a team that the Serengeti Boys defeated 3-1, to a goalless draw.
It looked like they would beat the Cubs until Mawa scored the winning goal in the 89th minute. It was his sixth goal in the competition.
In the second semi-final, Tanzania needed post-match penalties to reach the final after settling for a 1-1 draw in regulation time.
Omari Sultan Omari opened the scoring in the 38th minute for the Tanzanians. However, the Ethiopians fought back and managed to equalize in the 71st minute.
In the penalty shootout, Tanzania converted four penalties, while Ethiopia managed to convert three of them.
By reaching the final, the two nations have qualified for the U-17 Africa Cup of Nations.
The two countries will now meet in the final with Tanzania, hoping to avenge the defeat suffered by their U-20 team against the Hippos.
The Ngorongoro Heroes suffered a 4-1 loss to their neighbors to be crowned.
The Hippos got goals from Richard Basangwa, Steven Sserwada, Ivan Bogere and Kenneth Semakule, while the immediate former champions scored their only goal through Abdul Suleiman.
Djibouti and Ethiopia will face off to determine who will finish third in the competition.
Kenya, who was among the favorites, fell in the group stage. They played to a 2-2 draw with Ethiopia before falling 5-0 to Uganda. The Rwandan hosts were also sent home early. They tied with Djibouti and fell 3-1 to Tanzania.