Uganda Secures Historic Oil Refinery Deal with UAE Investors

Kabaale, Hoima District, Uganda – On Saturday, March 29, 2025, Uganda took a significant step toward energy independence and industrialization by signing a landmark oil refinery agreement with Alpha MBM Investments LLC, a firm based in the UAE. The agreement was finalized during a high-level ceremony at State House in Entebbe, attended by President Yoweri Kaguta Museveni. This deal establishes the foundation for a state-of-the-art crude oil refinery in Kabaale, Hoima District, with a capacity of 60,000 barrels per day.

Under the terms of the agreement, Alpha MBM Investments LLC will hold a 60% stake in the refinery, while the Uganda National Oil Company (UNOC) will retain a 40% share. The project is expected to revolutionize Uganda’s economy by improving energy security, creating thousands of jobs, and supporting industrial growth.

President Museveni described the deal as a pivotal moment for Uganda, highlighting its potential to transition the country from a consumer-based economy to a production powerhouse. “This oil refinery is not just about fuel; it is about Uganda producing and exporting refined products instead of importing,” he stated. “We must stop exporting raw materials and instead add value to everything we produce.”

The President expressed gratitude to His Highness Sheikh Mohammed Bin Maktoum and the UAE delegation for their investment, drawing a contrast between their success and Uganda’s untapped potential. “People in the desert, where there is no rain, have built an economic empire, while some Ugandans, blessed with fertile land and natural resources, remain poor. We must change this mindset,” he urged.

Museveni also reflected on Dubai’s transformation, recalling his initial impressions of its rapid development. “When we returned from fighting Amin, I had never heard of Dubai. It was only a few years ago that I visited and saw very active people. Work with them—they are not bringing loans but investments,” he said.

The refinery project includes several key components:

• A 60,000-barrel-per-day refinery complex in Kabaale, Hoima, designed to process Uganda’s crude oil reserves.
• A modern storage terminal in Namwabula, Mpigi District, ensuring a steady fuel supply for national consumption.
• A 212 km multi-product pipeline connecting the refinery to the storage terminal, facilitating efficient distribution of refined products across Uganda and beyond.
• The Mbegu Water Abstraction Facility, featuring an advanced pipeline system to support refinery operations sustainably.

President Museveni reaffirmed his administration’s commitment to creating a business-friendly environment and cautioned government officials against bureaucratic delays. “Those who stand in the way of progress will be swept aside,” he declared. “We are here to work with serious investors who bring capital, knowledge, and long-term benefits to Uganda.”

Minister of Energy and Mineral Development, Hon. Ruth Nankabirwa, echoed this sentiment by stating that the refinery aligns with Uganda’s National Oil and Gas Policy (2008) and the East African Refineries Development Strategy. “The refinery will create thousands of jobs, develop local expertise, and serve as a springboard for industries such as petrochemicals and fertilizer production,” she noted. The project will also comply with international environmental, health, and safety standards while incorporating cutting-edge technologies to minimize its ecological footprint.

In addition to the refinery deal, Uganda and the UAE investors signed five other agreements in various sectors, including:

• Aviation development
• Tree planting initiatives
• A digital land management system
• Logistics cargo hubs and storage chain facilities
• A comprehensive digital payment system for government transactions aimed at streamlining tax collection and financial services

His Highness Sheikh Mohammed Bin Maktoum, leading the UAE delegation, expressed his personal commitment to Uganda’s growth. “As long as I am in Uganda, I consider myself Ugandan. My team and I are here to support the nation and its people because our greatest happiness comes from seeing communities thrive,” he said.

Reflecting on his nearly two-year collaboration with President Museveni, Sheikh Maktoum praised Uganda’s investment-friendly climate. “I have never given up on this vision. I deeply appreciate Your Excellency’s support, and this is just the beginning of our journey together. What lies ahead is even greater, and the possibilities are limitless,” he added.

The signing ceremony gathered key figures, including Hon. Matia Kasaija (Minister of Finance, Planning & Economic Development), Hon. Jackson Kafuuzi (Deputy Attorney General), Mr. Ramathan Ggoobi (Permanent Secretary and Secretary to the Treasury), and Ms. Proscovia Nabbanja (CEO of UNOC).

As Uganda embarks on this ambitious project, the oil refinery deal stands as a testament to the nation’s determination to harness its natural resources, drive economic transformation, and establish itself as a regional leader in energy production and industrialization.