Uganda has officially signed an agreement with UAE-based Alpha MBM Investments LLC to develop a crude oil refinery in Kabaale, Hoima District. The deal grants Alpha MBM Investments a 60% ownership stake, while the Uganda National Oil Company (UNOC) retains the remaining 40%.
This project, valued at approximately US $4bn, is a crucial component of Uganda’s broader energy strategy aimed at enhancing the country’s oil production and refining capacity. The refinery project includes several key infrastructure developments, such as a 60,000-barrel-per-day processing plant, a modern storage terminal in Namwabula, Mpigi District, and a 212-kilometer multi-product pipeline to transport refined products.
Additionally, a water abstraction facility will be constructed to ensure a steady water supply for refinery operations. These components are expected to contribute significantly to Uganda’s industrialization efforts and energy security.
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Economic growth
President Yoweri Museveni welcomed the agreement, describing it as a major step toward adding value to Uganda’s natural resources. He expressed appreciation for the UAE’s commitment to investing in Uganda and urged government officials to minimize bureaucratic delays that could slow down implementation. Museveni emphasized that refining crude oil domestically would reduce reliance on imported petroleum products and stimulate economic growth by creating jobs and fostering industrial development.
Energy Minister Ruth Nankabirwa noted that the refinery aligns with Uganda’s National Oil and Gas Policy and the East African Refineries Development Strategy. The project is expected to attract further investment in related industries, such as petrochemicals and fertilizers, while also boosting local employment and expertise. She highlighted that Uganda’s oil industry is entering a transformative phase, with multiple infrastructure projects in progress to support long-term energy production.
Beyond the refinery, Uganda and UAE investors signed agreements in other sectors, including aviation, logistics, digital land management, afforestation, and financial technology for government transactions. These partnerships aim to improve service delivery and economic efficiency in Uganda. The collaboration between Uganda and Alpha MBM Investments signifies a strategic move toward self-sufficiency in energy production while fostering broader economic development.
