Faith Nyasuguta
Uganda has taken a major step toward energy independence with the awarding of a contract to build its first crude oil refinery. A UAE-backed company, Alpha MBM Investments, has secured a 60% stake in the 60,000-barrel-per-day (BPD) facility, while Uganda’s state-run National Oil Company will retain the remaining 40%.
The refinery, located in Kabaale, Hoima District, is expected to refine locally extracted crude oil, reducing Uganda’s dependence on fuel imports and strengthening its energy security. The project is a key component of Uganda’s strategy to utilize its oil reserves in the Albertine Graben region, which holds significant untapped potential.
Uganda has been working toward developing its oil sector for years. The decision to establish its own refinery aligns with the country’s goal of maximizing local resources, reducing reliance on imported petroleum, and supporting economic growth. Once operational, the refinery will create jobs, enhance industrialization, and improve fuel supply for Uganda and the wider region.
The project is expected to take three years to complete, with construction commencing immediately. Once finished, it will contribute significantly to Africa’s refining capacity, ensuring a more stable energy supply for Uganda and neighboring countries.
The deal with Alpha MBM Investments follows Uganda’s decision to end negotiations with a previous consortium, which included a unit of U.S. firm Baker Hughes. That consortium had failed to secure financing on time, prompting Uganda to seek new partners. In January, the government selected Alpha MBM Investments to help develop the $4 billion refinery project.
Alpha MBM Investments is led by His Highness Sheikh Mohammed bin Maktoum bin Juma Al Maktoum, a member of the Dubai Royal Family. The company brings both financial strength and technical expertise to the project, ensuring its viability. “We are pleased to have a partner with financial strength and a solid reputation. Work on the refinery will commence immediately,” said Uganda’s Minister of Energy and Mineral Development, Ruth Nankabirwa.
President Yoweri Museveni’s office also issued a statement emphasizing the importance of the project in securing Uganda’s energy future and positioning the country as a key player in Africa’s oil and gas sector.
Uganda’s refinery will play a critical role in boosting regional energy security. By refining crude oil extracted from the Albertine Graben, the facility will increase Africa’s domestic fuel production and reduce dependence on imported petroleum products.
With growing energy demands across the continent, the refinery will support industrialization and economic development while attracting foreign investment to Uganda’s oil sector. This marks a major step in Uganda’s long-term vision to harness its natural resources for sustainable economic growth.
As construction begins, Uganda’s journey toward self-sufficiency in fuel production takes a significant leap forward, solidifying its place in Africa’s evolving energy climate.
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