UNOC opens Kabalega Industrial Park to investors

KAMPALA — The Uganda National Oil Company (UNOC) has opened the Kabalega Industrial Park (KIP) to local and foreign investors, seeking to attract manufacturers, logistics firms, agro-processors and petrochemical industries ahead of the country’s planned oil refinery.

During a virtual investment launch on Tuesday, UNOC said the 29.57-square-kilometre industrial park in Hoima District is expected to become Uganda’s main oil and gas industrial hub, supporting the refinery while driving broader industrial development.

UNOC Managing Director Proscovia Nabbanja said the industrial park forms part of the company’s strategy to maximise value from Uganda’s petroleum resources by promoting investment across the oil and gas value chain and related industries.

“Our mandate is to maximise value from Uganda’s petroleum resources while contributing to the country’s socio-economic transformation,” Ms Nabbanja said.

She said the park, located about 50 kilometres west of Hoima City near Lake Albert, was transferred to UNOC by the Ministry of Energy in 2018 and is managed through the Uganda Refinery Holding Company.

The development has been planned around six zones that will accommodate heavy industries, light manufacturing, agro-processing, logistics facilities, commercial centres, residential estates and government offices.

According to UNOC, the heavy industrial zone will host the proposed oil refinery, a petrochemical complex, fertiliser and polymer manufacturing plants, bonded warehouses and a free trade zone. Other sections of the park are earmarked for investments in textiles, automotive components, biofuels, food processing, hospitality and warehousing.

Ms Nabbanja said the government has already approved financing for the first phase of infrastructure development, estimated at about $120 million. The works include internal roads, electricity distribution, water and sewerage systems, ICT infrastructure, security installations and a business facilitation centre.

Construction has already begun on UNOC’s site offices, while an 86-kilometre internal road network is expected to be completed by August 2027. A 240-megawatt electricity substation serving the park is about 85 per cent complete, she added.

Overall infrastructure development for the industrial park is projected to cost about $814 million and will be implemented in three phases.

Once fully developed, the industrial park is expected to host more than 31 investors, create over 35,000 jobs and contribute an estimated $4.9 billion annually to Uganda’s Gross Domestic Product, according to UNOC.

Petroleum Authority of Uganda Director for Legal and Corporate Affairs Ali Ssekatawa said the project marks a shift from crude oil production to value addition and industrialisation.

“The Kabalega Industrial Park represents the next phase of Uganda’s oil and gas journey, where petroleum investments become a foundation for industrial growth, value addition and private sector development,” Mr Ssekatawa said.

He said the park had been designed as a dedicated oil and gas industrial hub, drawing lessons from similar developments in countries such as Norway, South Africa and Vietnam.

Mr Ssekatawa added that government investments in roads, electricity, water supply, internet connectivity and Kabalega International Airport have improved the area’s attractiveness to investors.

Beyond the petroleum industry, he said the industrial park is expected to spur investment in agriculture, logistics, hospitality and other support services, positioning Hoima as a key industrial centre as Uganda prepares for commercial oil production.