Uganda’s long-delayed US$4 billion oil refinery project is finally moving forward after government officials signed new commercial agreements with Alpha MBM Investments, a UAE-based firm led by Sheikh Mohammed bin Maktoum bin Juma Al Maktoum of Dubai’s royal family. The deal is a major step toward securing the Final Investment Decision in July 2026, paving the way for construction to begin soon after.
The project, to be developed jointly by Alpha MBM and the Uganda National Oil Company, will deliver a 60,000-barrel-per-day refinery in Kabaale, Hoima District. Once completed, it will rank among East Africa’s largest downstream developments and anchor a new industrial zone in the Albertine Graben. Uganda’s investment authority says Alpha MBM will hold a 60 percent stake, with UNOC retaining 40 percent.
Government officials say Uganda’s reliance on imported petroleum products, a bill that exceeds US$2 billion annually, makes the refinery critical to the country’s economic and strategic future. President Yoweri Museveni has repeatedly argued that refining domestically will allow Uganda to export finished products instead of crude, strengthening energy security and reducing the cost of fuel.
The project includes a 212-kilometre multi-product pipeline, a 320-million-litre storage terminal and a water-abstraction facility. Energy minister Ruth Nankabirwa said the refinery would generate thousands of jobs, develop technical expertise and support downstream industries such as petrochemicals and fertiliser production. She said the facility would help position Uganda as a reliable supplier of refined oil to the region.
Officials close to the project say Uganda will shift from being a net importer of fuel to exporting refined products once the refinery is operational, reinforcing both revenue generation and industrial competitiveness. The development comes at a time when several African countries are pursuing energy self-sufficiency through large-scale refinery investments.
Nigeria’s Dangote Refinery, operating at about 650,000 barrels per day with plans to expand to 1.4 million, remains the continent’s largest example of this shift. Angola, Chad and Niger are also advancing refinery upgrades to meet rising demand and retain more value from their crude resources.
For Uganda, momentum will depend on keeping investor commitments firm, securing long-term crude supply and meeting global environmental and operational standards. Still, the agreement with Alpha MBM signals renewed confidence in a project that has faced years of delay. It also aligns with Africa’s broader strategy to refine more of its own crude, reduce foreign exchange pressure and shield economies from global fuel price shocks.
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