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Uganda Signs Deal for New Oil Refinery
Uganda has signed an implementation agreement with Alpha MBM Investments LLC, a UAE-based company, for the construction of a 60,000-barrels-per-day crude oil refinery in Hoima District. President Museveni hailed the project as a crucial step in Uganda’s industrial transformation.
Energy Minister Ruth Nankabirwa signed the agreement, formalizing the partnership. President Museveni emphasized the refinery’s role in producing and exporting refined products, moving away from raw material exports. He praised the involvement of UAE investors, particularly Sheikh Mohammed Bin Maktoum.
The refinery project, part of Uganda’s plan to maximize its 2006 oil discoveries, had previously faced delays with the Albertine Graben Refinery Consortium (AGRC) due to financing issues. The new deal with Alpha MBM Investments LLC aims to process crude from the Albertine region.
Minister Nankabirwa described the project as “transformative for our economy, our people, and our future.” The refinery will produce essential petroleum products, reducing Uganda’s reliance on imports via Mombasa, Kenya, which are vulnerable to external price shocks.
The project aligns with Uganda’s strategy to integrate oil refining with industrialization, creating a value-added petroleum sector. The refinery is expected to enhance energy security, stabilize fuel prices, and create jobs.
Alongside the refinery agreement, Uganda signed five additional deals with UAE investors in aviation, logistics, digital land management, cargo storage, and a government digital payment system, reflecting growing economic ties. The focus now shifts to securing financing and finalizing construction timelines for the refinery, which is projected to significantly alter Uganda’s energy landscape.
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