- Uganda’s $4 billion oil refinery will strengthen Africa’s refining capacity while creating a regional energy hub.
- The Uganda oil refinery project aims to boost Africa’s refining capacity and reduce reliance on imported fuels.
Uganda is moving closer to realising its long-awaited oil refinery project. The government expects operations to start between the fourth quarter of 2029 and the first quarter of 2030. This development represents a significant leap in Africa’s refining capacity. It also reduces reliance on imported fuels, improves domestic energy security, and positions Uganda as a key player in the continent’s downstream oil sector.
Michael Nkambo Mugerwa, General Manager of the Uganda Refinery Holding Company, stated that the $4 billion facility will anchor Uganda’s transition from a crude exporter to a hub for refined petroleum products. Consequently, the project supports Africa’s broader goal of expanding local refining capacity and boosting economic sovereignty.
At the Invest in Uganda panel during African Energy Week in Cape Town, Mugerwa highlighted the refinery’s strategic importance. The facility, located in Kabaale, Hoima District, is jointly managed by the developers, Uganda National Oil Company (UNOC), and UAE-based Alpha MBM Investments. The partners signed a 60,000-barrel-per-day capacity agreement in March 2025. UNOC holds 40%, while Alpha MBM contributes 60%.
Mugerwa explained that the refinery goes beyond crude processing. “We are developing petrochemicals, kerosene, fertilisers, and gas processing — the refinery captures the full value chain,” he said. Additionally, the project forms part of the Hoima industrial park, which has attracted $3–4 billion in initial investment and could draw an extra $1 billion from incoming stakeholders.
The Ugandan government funds its 40% stake, while Alpha MBM contributes 60%. This follows challenges in securing international debt financing, as European and American banks increasingly avoid fossil fuel projects. Nevertheless, Mugerwa confirmed that 15 investors have committed to the project. Developers also build critical infrastructure, including new roads, water systems, and a 200 MW high-voltage power supply.
Furthermore, the refinery will supply Uganda and neighbouring countries such as Tanzania and the Democratic Republic of Congo, creating a cross-border corridor for refined fuels and petrochemicals. Irene Bateebe, Permanent Secretary at the Ministry of Energy and Mineral Development, stated that Uganda is expanding its energy portfolio to 10,000 MW through hydro, solar, and nuclear sources.
As global energy dynamics shift, Africa’s refining ambitions increasingly support economic independence rather than simple fuel security. For Uganda, this refinery represents both a national milestone and a vital step towards a self-sufficient African energy landscape.