Uganda is accelerating efforts to end its dependence on imported petroleum products, following the signing of new commercial agreements tied to its long-awaited US$4 billion refinery project.

Uganda’s long-delayed $4 billion oil refinery project is finally gaining momentum following the signing of new contracts backed by investors from the United Arab Emirates, a development seen as a major step toward the country’s goal of becoming a regional energy hub.

The landmark agreement between the Ugandan government and UAE-based Alpha MBM Investments LLC marks a major step toward the Final Investment Decision (FID) scheduled for July 2026, with construction expected to commence shortly thereafter.

Led by His Highness Sheikh Mohammed bin Maktoum bin Juma Al Maktoum, a member of Dubai’s royal family, Alpha MBM will partner with the Uganda National Oil Company (UNOC) to develop the refinery.

The 60,000-barrel-per-day (bpd) facility, to be built in Kabaale, Hoima District, will be one of East Africa’s largest downstream energy investments once operational.

Uganda’s decision to proceed with the refinery stems from its rising annual petroleum import bill, which exceeds US$2 billion.

President Yoweri Museveni has repeatedly explained the strategic importance of refining domestically, saying the project is designed to “enable Uganda to produce and export refined products instead of importing them.”

According to the Uganda Investment Authority, Alpha MBM will hold a 60 percent equity stake in the refinery, while the Uganda National Oil Company (UNOC) will retain 40 percent.

The refinery’s development plan includes a 212-kilometre multi-product pipeline, a 320-million-litre storage terminal, and a water-abstraction facility.

Energy Minister Ruth Nankabirwa said the project would “create thousands of jobs, develop local expertise, and serve as a springboard for industries such as petrochemicals and fertiliser production.”

The facility, she added, will anchor an industrial hub in the Albertine Graben, positioning Uganda as a regional supplier of refined fuels.

According to project officials, the refinery’s completion will transform Uganda from a net importer into a fuel-exporting nation, strengthening the country’s energy security and industrial competitiveness. The project also reflects a broader continental push toward energy self-sufficiency.

Africa eyes fuel independence

Africa is stepping up efforts to end its long-standing dependence on imported fuel, with several countries investing heavily in domestic refinery projects to strengthen energy security and cut import bills.

From Nigeria’s $20 billion Dangote Refinery to Uganda’s upcoming $4 billion facility backed by the United Arab Emirates, the continent is witnessing a strategic shift toward refining crude oil locally rather than exporting it unprocessed.

Dangote Refinery, currently operating at around 650,000 barrels per day with plans to expand to 1.4 million, stands as a leading example of the country’s industrial transformation. Similarly, Angola, Chad, and Niger are advancing refinery expansions to meet local demand and boost value addition.

For Uganda, the success of the $4 billion refinery will depend on maintaining investment momentum, securing reliable crude supply, and aligning with global energy standards.

Still, the deal with Alpha MBM marks a decisive step in East Africa’s journey toward greater energy independence and a future where the continent refines more of its own oil.

This growing momentum reflects Africa’s broader push to capture more value from its natural resources, reduce foreign exchange pressure, and shield local economies from global oil market shocks. (Business Insider Africa)