Uganda Signs Deal with Alpha MBM to Construct Multi-Product Oil Refinery in Hoima District
Uganda has signed a major agreement with Alpha MBM Investments to develop a crude oil refinery in Kabaale, Hoima District, marking a significant step toward energy self-sufficiency.
President Yoweri Museveni emphasized that the project goes beyond fuel production, highlighting Uganda’s goal to refine and export its own petroleum products rather than relying on imports.
He stressed the importance of adding value to local resources instead of exporting crude oil raw.
The Uganda National Oil Corporation (UNOC) entered into a partnership with Alpha MBM earlier this year, formalizing the commercial agreements in mid-August after a previous consortium withdrew from negotiations.
Alpha MBM, led by Sheikh Mohammed bin Maktoum of Dubai’s royal family, will hold the majority stake, while UNOC retains the remaining shares.
The refinery will be financed through a combination of debt and equity, with construction expected to start soon and operations projected to follow within a few years.
Plans for the Greenfield Oil Refinery include a multi-product pipeline connecting Uganda’s second-largest city to a distribution terminal in Namwabula, Mpigi District, along with a raw water pipeline from Lake Albert to support operations.
Uganda views the refinery as a cornerstone for energy security, aiming to reduce reliance on imported refined fuel, which currently costs billions annually.
Once operational, the facility is expected to meet domestic demand and generate surplus for export across African markets, where most refined products are still imported despite local crude production.
In parallel, Uganda is progressing with the East African Crude Oil Pipeline project, which has entered its final phase.
Construction is underway on a key section linking the Waiga River to the Kabalega Industrial Park in Hoima, supporting the country’s broader energy infrastructure strategy.
