Museveni backs Dangote’s East Africa oil refinery plan

President Museveni on Sunday, May 17, 2026, met Nigerian billionaire industrialist Aliko Dangote in Kampala as Uganda renewed support for a proposed regional oil refinery project that could reshape East Africa’s energy sector and reduce dependence on imported fuel.

The meeting at State House, Nakasero, comes weeks after Dangote signalled fresh interest in building a major refinery in East Africa during the Africa We Build Summit held in Nairobi in April. At the summit, Dangote said he was ready to replicate his 650,000-barrel-per-day refinery in Nigeria if regional governments backed the initiative.

In a statement released after the meeting, President Museveni reiterated Uganda’s long-standing opposition to exporting raw materials without value addition, saying this was the reason Uganda delayed commercial oil production while insisting on establishing a refinery.

“Without refining our oil, it would not make economic or strategic sense to simply export crude oil while others benefit from the finished products,” Mr Museveni said.

He added that Uganda supports the idea of a larger regional refinery because it aligns with the broader objective of African integration and regional economic cooperation.

“We cannot continue operating as fragmented and weak markets. If East Africa works together, such projects become more viable and beneficial to our people,” the President said.

The discussions signal growing momentum behind plans for a regional refinery that could serve Uganda, Kenya, Tanzania, South Sudan, eastern Democratic Republic of Congo, and other neighbouring markets. Regional leaders have increasingly argued that East Africa should process its crude oil locally instead of exporting it and importing expensive refined petroleum products from the Middle East and other global markets.

At the Nairobi summit, Dangote said the proposed refinery could be completed within four to five years if governments in the region agreed on the project structure and provided political support.

The businessman already has significant experience in refinery development through the Dangote Refinery in Lagos, Nigeria, currently Africa’s largest refinery with a capacity of 650,000 barrels per day. The refinery, which recently began operations, has helped Nigeria reduce fuel imports and expand exports of refined petroleum products, jet fuel, and fertiliser.

Regional leaders view the East African refinery proposal as a strategic project that could strengthen energy security and reduce the region’s vulnerability to global fuel supply disruptions and price shocks. Recent geopolitical tensions in the Middle East have exposed the risks associated with East Africa’s heavy dependence on imported refined fuel.

Analysts say a regional refinery could deliver multiple economic benefits for Uganda and neighbouring countries.

Uganda currently imports most of its refined petroleum products through Kenya’s transport network, exposing the country to supply bottlenecks and pricing disputes. A regional refinery could reduce import costs, stabilise fuel supply, and lower transport expenses for landlocked economies such as Uganda, Rwanda, Burundi, and South Sudan.

The project could also stimulate industrialisation by supporting petrochemical industries, fertiliser production, plastics manufacturing, and logistics businesses linked to the oil value chain.

Thousands of jobs are also expected to emerge during both the construction and operational phases of the refinery, while governments could earn additional revenue from taxes, exports, and downstream petroleum activities.

Energy experts further argue that refining crude oil locally would allow East African countries to retain more value from their natural resources instead of exporting crude and importing expensive finished products.

The refinery proposal also comes as Uganda continues pursuing its own domestic refinery project in Hoima. In 2024, Uganda signed an agreement with UAE-based Alpha MBM Investments to develop a 60,000-barrel-per-day refinery.

However, the emergence of Dangote’s larger regional proposal has triggered debate about whether East Africa should pursue one integrated refinery or maintain separate national projects.

Kenyan President William Ruto recently said regional governments were discussing a joint refinery strategy centred on either Tanzania’s port of Tanga or Kenya’s port city of Mombasa.

For Uganda, the latest engagement between Museveni and Dangote signals that Kampala is increasingly open to balancing its national refinery ambitions with broader regional energy integration plans.