Uganda is accelerating efforts to end its dependence on imported petroleum products following the signing of key commercial agreements that will propel its long-delayed $4 billion oil refinery project. The agreements, backed by UAE-based Alpha MBM Investments, are seen as a significant step toward the country’s goal of becoming a regional energy hub. Uganda $4bn refinery project
The project, set to process 60,000 barrels per day (bpd) of crude oil, aims to reduce Uganda’s rising petroleum import bill, which exceeds US$2 billion annually. The refinery will be built in Kabaale, Hoima District, and is expected to be one of East Africa’s largest downstream energy investments once completed.
The landmark agreement between the Ugandan government and Alpha MBM Investments LLC brings the project closer to its Final Investment Decision (FID) scheduled for July 2026, with construction set to begin shortly thereafter. Alpha MBM, led by His Highness Sheikh Mohammed bin Maktoum bin Juma Al Maktoum, a member of Dubai’s royal family, will partner with the Uganda National Oil Company (UNOC) to develop the refinery.
The project will also include essential infrastructure such as a 212-kilometre multi-product pipeline, a 320-million-litre storage terminal, and a water abstraction facility, all of which will contribute to enhancing Uganda’s energy security and industrial capacity. The development plan envisions creating thousands of jobs, boosting local industries, and positioning the country as a supplier of refined fuels across the region.
Uganda’s President Yoweri Museveni has repeatedly stressed the strategic importance of domestic refining, emphasizing that the project will allow the country to produce and export refined products rather than relying on costly imports. According to the Uganda Investment Authority, Alpha MBM will hold a 60% equity stake, while UNOC will retain 40%.
Once operational, the refinery is expected to transform Uganda from a net importer of petroleum into a fuel-exporting nation, improving the country’s energy security and industrial competitiveness. This shift mirrors a broader trend across Africa, where countries are investing in domestic refining to reduce dependency on imported fuels and keep more value from their natural resources.
This momentum in Uganda is part of a continent-wide push toward energy self-sufficiency. Alongside Uganda’s refinery, Nigeria’s $20 billion Dangote Refinery and several expansion projects in Angola, Chad, and Niger reflect Africa’s growing efforts to refine more of its crude oil locally. These projects aim to curb import bills, boost industrialization, and protect economies from global oil market fluctuations. Uganda $4bn refinery project
For Uganda, the success of the $4 billion refinery will depend on maintaining investment momentum, securing reliable crude oil supply, and meeting global energy standards. However, the deal with Alpha MBM marks a decisive step in East Africa’s pursuit of greater energy independence and highlights the growing importance of refining more of the continent’s oil locally.
As African nations increasingly shift toward domestic refining, the continent’s efforts to capture more value from its natural resources will help reduce foreign exchange pressure, enhance economic resilience, and mitigate the effects of global energy price volatility. The Uganda refinery project is thus a key milestone in East Africa’s energy transformation, and its completion will significantly alter the region’s energy landscape.
