Uganda’s President Yoweri Museveni has confirmed ongoing discussions with Nigerian industrialist Aliko Dangote over plans to develop a large scale oil refinery project in East Africa, a move that could reshape the region’s energy infrastructure and reduce reliance on imported refined petroleum products.
Museveni revealed through a post on his official X account that he recently met with Dangote to explore the possibility of establishing a regional mega refinery. The talks are part of broader efforts to strengthen industrial capacity and energy independence across East African economies that continue to face high fuel import costs and supply chain vulnerabilities.
The proposed refinery project, if realised, would represent one of the most ambitious energy infrastructure developments on the African continent. East African countries such as Uganda, Kenya, Tanzania and Rwanda currently rely heavily on imported refined petroleum, despite having growing domestic crude oil potential in some areas, particularly Uganda’s oil reserves in the Albertine Graben region.
Aliko Dangote, founder of the Dangote Group, is already known for building Africa’s largest oil refinery in Nigeria, a project designed to significantly reduce the continent’s dependence on imported fuel. His involvement in potential East African expansion signals a continuation of his broader industrial strategy focused on large scale, integrated energy and manufacturing infrastructure across Africa.
President Museveni has consistently advocated for value addition to Africa’s natural resources, arguing that exporting raw materials while importing finished goods limits economic growth and job creation. A regional refinery aligns with this philosophy by enabling African countries to process their own crude oil and retain more value within the continent’s economy.
Energy analysts suggest that a mega refinery in East Africa could significantly reduce fuel import bills, stabilise regional fuel prices, and improve energy security. It could also enhance industrial growth by providing more reliable and affordable access to petroleum products used in transportation, manufacturing, and power generation.
However, the project would also face substantial challenges, including financing, infrastructure coordination across multiple countries, regulatory alignment, and securing long term crude supply agreements. Large scale refinery projects typically require billions of dollars in investment and long development timelines, as well as strong political cooperation between participating nations.
Dangote’s refinery experience in Nigeria provides both a blueprint and a cautionary example. While the Nigerian project demonstrates the feasibility of large scale private sector led refining capacity in Africa, it has also faced delays, cost escalations, and operational complexities that highlight the difficulty of executing such mega infrastructure initiatives.
The East African proposal would likely require a consortium approach, involving governments, private investors, and potentially international development partners. Regional integration through frameworks such as the East African Community could play a key role in harmonising policies and facilitating cross border infrastructure development.
Museveni’s announcement reflects growing momentum around African led industrialisation strategies, where leaders are increasingly seeking to attract major private sector players to build foundational infrastructure rather than relying heavily on imported energy systems. This approach is seen as critical for long term economic resilience and reduced exposure to global oil market shocks.
If the discussions progress into a formal agreement, the refinery could become a transformational project for East Africa, potentially creating thousands of jobs, boosting local refining capacity, and strengthening the region’s position in global energy markets.
For now, the talks remain in an exploratory phase, but the involvement of both Museveni and Dangote signals serious interest at the highest levels. The outcome will depend on feasibility studies, financing structures, and the ability of stakeholders to align on a shared regional energy strategy.
