Uganda is set to significantly boost Africa’s refining capabilities with its $4 billion oil refinery, scheduled to begin operations by 2030.
- Uganda plans to operationalize a $4 billion oil refinery by 2030, enhancing Africa’s refining capacity.
- The project, situated in Hoima District, is a collaboration between Uganda National Oil Company and Alpha MBM Investments.
- Designed for a 60,000-barrel-per-day capacity, the refinery will diversify outputs including petrochemicals and kerosene.
- Uganda’s broader energy strategy includes expanding its capacity to 10,000 MW through renewable and non-renewable sources.
Uganda’s long-awaited oil refinery project is finally moving closer to reality, with operations expected to commence between the fourth quarter of 2029 and the first quarter of 2030.
The project, one of the largest of its kind on the continent, aims to reduce the region’s reliance on imported fuel, strengthen domestic energy security, and position Uganda as a key player in Africa’s downstream oil sector.
According to Michael Nkambo Mugerwa, General Manager of the Uganda Refinery Holding Company, the $4 billion facility will anchor the country’s transition from a crude exporter to a refined product hub, part of Africa’s wider push to strengthen local refining capacity and reduce reliance on imported fuels.
Speaking at the Invest in Uganda panel during the African Energy Week in Cape Town, Mugerwa outlined the refinery’s progress and significance for the region.
According to a release by the African Energy Chamber, the project, located in Kabaale, Hoima District, is being jointly developed by Uganda National Oil Company (UNOC) and UAE-based Alpha MBM Investments under a 60,000-barrel-per-day capacity agreement signed in March 2025.
UNOC will hold a 40% stake, while Alpha MBM provides the remaining 60%. “This project goes beyond fuel production,” Mugerwa said.
“We are looking at petrochemicals, kerosene, fertilizers and gas processing — the refinery is designed to capture the full value chain.”
Building Africa’s Next Refining Frontier
The refinery is part of a broader industrial ecosystem being developed in the Hoima industrial park, supported by $3 – 4 billion in initial investments, with the potential to attract an additional $1 – 2 billion.
Last year, the Ugandan government agreed to fund its $4 billion oil refinery entirely through equity, contributing 40%, with UAE-based partner Alpha MBM Investments LLC providing 60%.
The decision was taken after the government faced difficulties securing international debt financing, as European and American banks increasingly shy away from fossil fuel projects.
However, Mugerwa noted that 15 investors have already committed to the project, alongside significant infrastructure work, including new roads, water systems, and a 200 MW high-voltage power supply.
The complex will not only serve Uganda’s domestic market but also supply neighboring Tanzania and the Democratic Republic of Congo, creating a cross-border trade corridor for refined fuels and petrochemicals.
Uganda’s leaders believe the project represents more than an energy milestone. Irene Bateebe, Permanent Secretary at the Ministry of Energy and Mineral Development, said the government is expanding its energy portfolio to 10,000 MW, including hydro, solar, and nuclear sources.
“We have committed $5 billion for power infrastructure. This is about building a sustainable energy base for the future,” she said.
Africa’s Refining Renaissance
Uganda’s refinery joins a growing list of new African projects aimed at ending the continent’s fuel import dependence.
Nigeria’s $20 billion Dangote Refinery, which came online earlier in 2025, has already cut Nigeria’s fuel imports by more than half while exporting refined products to the U.S., Europe, and across West Africa.
The success of Dangote’s model which is privately financed but nationally strategic, is now serving as a blueprint for emerging refineries in Uganda, Angola, and Senegal.
As global energy dynamics shift, Africa’s refining ambitions are no longer just about fuel security but economic sovereignty.
For Uganda, the upcoming refinery represents both a national milestone and a step toward a self-sufficient African energy landscape.
