Uganda’s long-delayed US$4 billion oil refinery project is finally moving forward after the government signed fresh commercial agreements with UAE-based Alpha MBM Investments LLC.
The new contracts signal major progress toward the country’s goal of reducing its heavy dependence on imported petroleum products.
The refinery, which will be located in Kabaale, Hoima District, is designed to process 60,000 barrels of crude oil per day and will be developed in partnership between Alpha MBM—led by Dubai royal family member Sheikh Mohammed bin Maktoum bin Juma Al Maktoum—and the Uganda National Oil Company.
Under the agreement, Alpha MBM will hold a 60% stake in the project, while UNOC will retain 40%.
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Uganda aims to reach a Final Investment Decision by July 2026, with construction expected to begin soon after. The project includes several supporting facilities such as a 212-kilometre multi-product pipeline, a 320-million-litre storage terminal, and a water abstraction system.
Government officials say the refinery is crucial to curbing Uganda’s annual petroleum import bill, which exceeds US$2 billion.
President Yoweri Museveni has repeatedly emphasised the importance of refining crude domestically to allow the country to “produce and export refined products instead of importing them.”
Energy Minister Ruth Nankabirwa noted that the project is expected to create thousands of jobs, build local technical capacity, and stimulate related industries such as petrochemicals and fertilizer production.
Once completed, the refinery will position Uganda as a regional supplier of refined fuels and strengthen energy security.
The development comes amid a wider continental shift toward energy independence. Across Africa, countries such as Nigeria, Angola, Chad, and Niger are investing heavily in new or expanded refineries to reduce reliance on imported fuel.
Nigeria’s 650,000-barrel-per-day Dangote Refinery—set to expand to 1.4 million bpd—remains the most significant example of the trend.
For Uganda, sustaining investment momentum and ensuring a reliable crude supply will be key to the success of its US$4 billion project.
Still, the UAE-backed deal marks an important step toward transforming the country from a petroleum importer to an exporter and aligns with Africa’s broader push to refine more of its natural resources domestically.
