Overview:
Alpha MBM and UNOC move forward with the $4 billion refinery, part of a strategy to capture the full energy value chain, including petrochemicals and fertilizer. See the timeline and scope of this key industrial project.
KAMPALA, Uganda — Uganda’s long-planned oil refinery is now expected to begin operations in late 2029 or early 2030, marking a key step in the nation’s efforts to develop its petroleum and downstream industry, an official announced.
The $4 billion project will be a partnership between the Uganda National Oil Company, which will hold a 40% stake, and UAE-based Alpha MBM Investments, which will finance the remaining 60%, according to Michael Nkambo Mugerwa, general manager of the Uganda Refinery Holding Company.
Mugerwa confirmed the timeline at the Invest in Uganda panel during African Energy Week 2025 in Cape Town. The facility, with a capacity of 60,000 barrels per day, will be built in Kabaale, Hoima District.
“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 refinery will be the centerpiece of a broader industrial park. Mugerwa noted that $3 to $4 billion has already been committed to the park’s development, with an additional $1 to $2 billion in potential investments anticipated. Infrastructure work, including new roads, water facilities and a 200-megawatt high-voltage power supply, is advancing.
“About 15 investors have already committed to the park,” Mugerwa said, adding that it will “create an ecosystem around the refinery and stimulate wider industrial growth.”
Regional Hub Ambitions
The new facility aims to position Uganda as an emerging energy hub in East Africa. It will serve regional markets by exporting refined products to Tanzania and the Democratic Republic of the Congo.
Humphrey Asiimwe, CEO of the Uganda Chamber of Energy and Minerals, told the panel that Uganda offers a competitive investment environment, citing “peace, security, a young population and a stable currency.” He also noted that the country offers zero import tax on equipment for investors.
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, adding that $5 billion has been committed for power infrastructure.
Philips Obita, UNOC’s general manager for upstream operations, said the company is strengthening its role across the energy value chain, including participating in the East African Crude Oil Pipeline. He said UNOC is advancing five exploration projects, with seismic studies expected to conclude by November 2025.
The refinery and associated industrial park are expected to anchor Uganda’s transition from a crude exporter to a producer of value-added products, a key goal in the government’s industrialization strategy.
Uganda’s project follows the model of other major African refineries, such as Nigeria’s $20 billion Dangote Refinery, which began operations earlier in 2025 and is now serving as a blueprint for emerging projects across the continent.