The Pan-African multilateral development financial institution, the Africa Finance Corporation (AFC), will invest $95.25 million in Uganda’s petroleum logistics infrastructure.
The investment will be directed towards the oil and gas company Mahathi Infra Uganda. The funds will be used to finance the construction of two self-propelled barges for operation on Lake Victoria.
The financing will also support the development of 14 petroleum storage tanks, 20 truck loading bays, a jetty, and a parking lot with a capacity of 50 trucks.
The investment is in alignment with international environmental and safety standards. The self-propelled barges will serve as a less carbon-intensive alternative to conventional trucking, reducing costs and transport time.
Samaila Zukairu, President, and CEO of the AFC, stated, “Through this investment, we are contributing to the transformation of petroleum transportation in Uganda with a lower-emissions alternative that cuts costs significantly, reduces road congestion, and improves mobility and accessibility for people, leading to sustainable economic growth and productivity.”
More efficient petroleum transportation and a reduction in road congestion and transport time are expected to alleviate capital burdens for small- and medium-sized distributors. The use of self-propelled barges will reduce greenhouse gas emissions in the country’s logistics sector by over 95%, from 172,103 tons to approximately 7,692 tons of CO2.
Mahathi Infra Uganda’s workforce is expected to grow from 22 to 100 employees, with women comprising 30% of the workforce. Additionally, the project is anticipated to serve as the foundation for future expansions into other landlocked countries near Lake Victoria, thus bringing socioeconomic benefits to other countries in the East African region.
