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Uganda’s long-delayed US$4 billion oil refinery project has gained fresh momentum after the government signed new agreements with UAE-based Alpha MBM Investments, marking a decisive push toward the long-awaited Final Investment Decision (FID) in July 2026.
The partnership, led by Sheikh Mohammed bin Maktoum bin Juma Al Maktoum, will see Alpha MBM take a 60% stake in the refinery, with the Uganda National Oil Company (UNOC) retaining the remaining 40%. Construction is expected to begin soon after FID. Planned for Kabaale in the Hoima District, the 60,000-barrel-per-day refinery will rank among East Africa’s largest downstream energy investments. The project includes a 212 km multi-product pipeline, a 320 million-litre storage terminal and a dedicated water-abstraction facility.
Uganda’s push to refine crude domestically is driven by its rising petroleum import bill, which now exceeds US$2 billion annually. President Yoweri Museveni has consistently underscored the refinery’s strategic importance, arguing it will enable the country to “produce and export refined products instead of importing them.”
Minister of Energy Ruth Nankabirwa said the project is expected to generate thousands of jobs, attract secondary industries such as petrochemicals and fertiliser production and cement the Albertine Graben as an industrial hub. Once operational, officials say the refinery will transform Uganda from a net importer of petroleum products into a regional exporter, strengthening energy security and industrial competitiveness.
