Uganda is advancing its long-awaited $4 billion oil refinery project, a major milestone that could reshape the continent’s refining landscape.
Set to begin operations between late 2029 and early 2030, the refinery in Hoima District marks a decisive step in Africa’s bid to reduce its dependence on imported fuel and strengthen regional energy security.
The project — a collaboration between the Uganda National Oil Company (UNOC) and UAE-based Alpha MBM Investments — is designed to process 60,000 barrels of crude oil per day.
Under the agreement signed in March 2025, UNOC holds a 40% stake while Alpha MBM finances the remaining 60%.
“This project goes beyond fuel production,” said Michael Nkambo Mugerwa, General Manager of the Uganda Refinery Holding Company, during the Invest in Uganda panel at African Energy Week in Cape Town.
“We are capturing the full value chain — from petrochemicals and fertilizers to kerosene and gas processing.”
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The refinery forms the centerpiece of a broader industrial ecosystem in the Hoima Industrial Park, expected to attract between $3 and $6 billion in additional investments.
Infrastructure developments — including new roads, water systems, and a 200 MW high-voltage power line — are already underway.
While Uganda faced challenges securing Western debt financing due to the global shift away from fossil fuel projects, equity-based funding and commitments from at least 15 investors have kept the refinery on track.
Beyond serving Uganda’s domestic market, the facility will supply refined products to neighboring Tanzania and the Democratic Republic of Congo, establishing a regional fuel corridor.
Irene Bateebe, Permanent Secretary at Uganda’s Ministry of Energy and Mineral Development, said the government’s broader goal is to expand national energy capacity to 10,000 MW through hydro, solar, and nuclear projects.
“We’ve committed $5 billion to power infrastructure,” Bateebe said. “This is about building a sustainable and diversified energy base for Uganda’s future.”
Uganda’s refinery joins a wave of major projects transforming Africa’s downstream sector. Nigeria’s $20 billion Dangote Refinery, commissioned earlier in 2025, has already cut fuel imports by more than half while exporting refined products across multiple continents.
That success, analysts say, has inspired a “refining renaissance” in countries like Uganda, Angola, and Senegal — a shift that’s as much about energy security as it is about economic sovereignty.
For Uganda, the Hoima refinery represents not just an industrial milestone, but a strategic declaration: that Africa’s future energy story will increasingly be written by Africans themselves.
