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The refinery will also serve regional markets, exporting refined products to Tanzania and the Democratic Republic of the Congo
Kampala, Uganda | THE INDEPENDENT | Uganda’s long-awaited oil refinery is expected to begin operations in late 2029 or early 2030, marking a major milestone in the country’s ambitions to develop its petroleum industry and downstream capacity, according to Uganda Refinery Holding Company General Manager, Michael Nkambo Mugerwa.
Speaking at the Invest in Uganda panel during African Energy Week (AEW): Invest in African Energies 2025 in Cape Town, Mugerwa confirmed that the refinery — to be built in Kabaale, Hoima District — will proceed under a $4 billion partnership between the Uganda National Oil Company (UNOC) and UAE-based Alpha MBM Investments. UNOC will hold a 40% stake, while Alpha MBM will finance 60%.
“This project goes beyond fuel production — we are looking at petrochemicals, kerosene, fertilizers and gas processing,” Mugerwa said. “The refinery is designed to capture the full value chain.”
The 60,000-barrel-per-day facility will form the centerpiece of a broader industrial park already attracting investor attention. Mugerwa said $3–4 billion has been committed to the park’s development, with an additional $1–2 billion in potential investments anticipated. Infrastructure development is advancing, including new roads, water facilities, and a 200 MW high-voltage power supply.
“About 15 investors have already committed to the park,” Mugerwa noted. “It will create an ecosystem around the refinery and stimulate wider industrial growth.”
Exports to regional markets
The refinery will also serve regional markets, exporting refined products to Tanzania and the Democratic Republic of the Congo, further positioning Uganda as an emerging energy hub in East Africa.
Uganda Chamber of Energy and Minerals CEO, Humphrey Asiimwe, told the panel that the country’s investment environment remains competitive.
“There is peace, security, a young population and a stable currency,” he said. “If you invest here, import tax on equipment is zero. Plus, you gain a springboard to markets in Tanzania, Kenya and the DRC. If it’s not Uganda, where else would you invest?”
Irene Bateebe, Permanent Secretary in the Ministry of Energy and Mineral Development, said government investments in transport and energy infrastructure are supporting the oil sector’s growth.
“We are developing railways and expanding our diversified energy portfolio to 10,000 MW, including hydro, solar and nuclear,” she said. “We have committed $5 billion for power infrastructure.”
UNOC’s General Manager for Upstream, Philips Obita, said the company is strengthening its role in exploration, production, and midstream operations.
“We hold commercial interests of up to 150,000 barrels and are participating in the EACOP pipeline,” he said. “Oil and gas are finite resources, so we are investing in local content, technology transfer, and building capacity to manage exploration and infrastructure ourselves.”
Obita added that UNOC is advancing five exploration projects and geophysical services, with seismic studies expected to conclude by November 2025.
Once operational, the refinery and its associated industrial park are expected to anchor Uganda’s transition from crude exporter to value-added producer — a key goal under the government’s broader industrialisation strategy.
Uganda’s refinery joins a growing list of new African projects aimed at ending the continent’s fuel import dependence.
Nigeria’s $20 billion Dangote Refinery, which came online earlier in 2025, has already cut Nigeria’s fuel imports by more than half while exporting refined products to the U.S., Europe, and across West Africa.
The success of Dangote’s model which is privately financed but nationally strategic, is now serving as a blueprint for emerging refineries in Uganda, Angola, and Senegal.
