- The Uganda oil refinery project aims to strengthen the country’s energy security and reduce dependence on fuel imports.
- Investors believe the Uganda oil refinery project will drive industrial expansion and position the nation as a regional fuel supplier.
Uganda’s long-delayed $4 billion oil refinery project has entered a new phase. The government has signed fresh contracts with major investors from the United Arab Emirates. This milestone marks a significant step in Uganda’s plan to become a key energy hub in East Africa. It also shows growing investor confidence in the country’s long-term oil and gas strategy.
The new agreement between the government and UAE-based Alpha MBM Investments LLC lays the foundation for the Final Investment Decision (FID) expected in July 2026. Construction will begin soon after the decision is approved. Officials also see the partnership as a turning point for a project that has suffered long delays.
Alpha MBM Investments, led by His Highness Sheikh Mohammed bin Maktoum bin Juma Al Maktoum, will work with the Uganda National Oil Company (UNOC) to develop the refinery. The facility will process 60,000 barrels of oil per day. It will sit in Kabaale, Hoima District, and will become one of East Africa’s largest downstream developments.
Uganda wants this refinery because its fuel import bill continues to rise. The country now spends more than $2 billion each year on imported petroleum products. President Yoweri Museveni has emphasised the importance of local refining. He argues that Uganda must produce and export refined products rather than depend on foreign suppliers. This move will ease pressure on foreign exchange reserves and help stabilise fuel prices.
The Uganda Investment Authority confirms that Alpha MBM will hold a 60% equity stake, while UNOC will retain a 40% stake. The wider project includes a 212-kilometre multi-product pipeline, a 320-million-litre storage terminal, and a water abstraction facility.
Energy Minister Ruth Nankabirwa stated that the project will create thousands of jobs and boost local technical capacity. She added that the refinery will support industries such as petrochemicals and fertiliser production. This development will also position Uganda as a reliable supplier of refined fuel in the region.
Once completed, the refinery will enable Uganda to transition from a fuel importer to a fuel exporter. This shift will improve energy security and strengthen industrial competitiveness. It also supports Africa’s broader effort to reduce reliance on imported fuel.
Across the continent, several countries are pursuing similar goals. Nigeria’s Dangote Refinery, which now produces 650,000 barrels per day, is a leading example. Angola, Chad, and Niger are also upgrading and expanding their facilities to meet local demand.
Uganda’s success will depend on maintaining strong investment momentum, ensuring a stable crude supply, and adhering to global environmental standards. Even so, the agreement with Alpha MBM marks a decisive step in East Africa’s journey toward energy independence.
Ultimately, the refinery project highlights Africa’s commitment to enhancing the value of its natural resources and protecting local economies from the effects of global oil market fluctuations.