Uganda has taken a significant step toward energy self-sufficiency with the signing of a landmark oil refinery implementation agreement between the Ugandan government and Alpha MBM Investments LLC, a company based in the United Arab Emirates (UAE).
The agreement, witnessed by President Yoweri Museveni, marks a major milestone in Uganda’s efforts to develop its oil and gas sector.
The planned refinery, to be constructed in Hoima District, will have a processing capacity of 60,000 barrels of crude oil per day.
This initiative aligns with Uganda’s broader vision of industrialization and economic transformation, reducing reliance on imported petroleum products and boosting value addition to locally extracted resources.
“I want to thank His Highness Sheikh Mohammed Bin Maktoum and our friends from the UAE for their commitment to investing in Uganda,” President Museveni stated. “The oil refinery is not just about fuel but also about Uganda producing and exporting refined products instead of importing them. We must stop exporting raw materials and instead add value to everything we produce.”
The investment from Alpha MBM Investments LLC is expected to enhance Uganda’s energy security, create employment opportunities, and spur economic growth in the region. The refinery will process crude oil from Uganda’s fields in the Albertine Graben, which has estimated reserves of 6.5 billion barrels.
Industry analysts highlight that the project will significantly reduce Uganda’s fuel import bill and position the country as a key player in the regional petroleum market. Additionally, by refining crude locally, Uganda can develop downstream industries such as petrochemicals and plastics manufacturing, further strengthening its industrial base.
Five other agreements with UAE investors have also been signed across various sectors, including aviation, tree planting, a digital land management system, logistics cargo hubs, storage chain facilities, and a comprehensive digital payment system for government transactions.