Kampala, March 29 (Reuters) – Uganda has signed a landmark agreement with UAE-based Alpha MBM Investments to develop a 60,000-barrel-per-day (bpd) oil refinery in Kabaale, Hoima District, the office of President Yoweri Museveni announced on Saturday.
Under the terms of the deal, Alpha MBM Investments will hold a 60% stake, while Uganda’s state-owned National Oil Company will retain the remaining 40% ownership.
A Key Milestone in Uganda’s Oil Industry
The $4 billion refinery project is a cornerstone of Uganda’s growing hydrocarbons sector and a crucial component of the government’s plan to develop domestic oil processing capabilities. For years, Uganda has sought to reduce dependence on imported petroleum products by leveraging its Albertine Graben crude reserves.
With an operational refinery, Uganda aims to enhance energy security, lower fuel costs, and promote economic growth. The project is also expected to create thousands of jobs, boost industrial development, and support regional energy trade by supplying refined products to neighboring countries such as Rwanda, Kenya, and South Sudan.
Strategic Partnerships and Negotiations
Uganda’s Minister of Energy and Mineral Development, Ruth Nankabirwa, revealed that negotiations with Alpha MBM Investments began on January 16 and were projected to conclude within three months.
Alpha MBM Investments is led by Sheikh Mohammed bin Maktoum, a member of Dubai’s royal family, and specializes in energy, infrastructure, and industrial investments. The company’s involvement underscores UAE’s growing role in East Africa’s oil and gas sector.
Boosting Regional Energy Infrastructure
The refinery will complement other major projects such as the East African Crude Oil Pipeline (EACOP), which will transport Uganda’s crude oil to international markets via Tanzania’s coast. The presence of a local refinery ensures that a significant portion of Uganda’s crude production is processed domestically before export.
The deal also marks a deepening of Uganda’s economic ties with the UAE, setting the stage for future collaborations in the energy and infrastructure sectors.
Looking Ahead
Once completed, the Kabaale oil refinery is expected to transform Uganda’s energy landscape, reduce reliance on fuel imports, and position the country as a key player in Africa’s oil and gas industry. With backing from a prominent UAE investment firm, the project signals Uganda’s commitment to long-term energy development and economic diversification.
