Uganda, UAE firm seal oil refinery deal for 60,000-barrel facility

_________________

Uganda has sealed a long-awaited oil refinery deal with UAE-based Alpha MBM Investments LLC, setting the stage for the construction of a 60,000-barrel-per-day crude oil refinery in Kabaale, Hoima district.

The agreement, signed on Saturday, March 29, at State House, Entebbe, was witnessed by President Yoweri Museveni, who hailed it as a transformative step in Uganda’s industrialisation efforts. The deal grants Alpha MBM Investments a 60% stake in the refinery, with the Uganda National Oil Company (UNOC) holding the remaining 40%.

Museveni used the occasion to warn government officials against bureaucratic obstacles that could frustrate investors.

"I want to thank His Highness Sheikh Mohammed Bin Maktoum and our friends from the UAE for their commitment to investing in Uganda," Museveni said.

The refinery project includes a state-of-the-art processing facility in Hoima, a modern storage terminal in Namwabula, Mpigi district, a 212km multi-product pipeline connecting the two, and a water abstraction facility at Mbegu to support operations.

The infrastructure is expected to reduce Uganda’s reliance on imported petroleum products while spurring economic growth through job creation and industrial development.

Museveni, who has championed economic self-sufficiency, criticised resistance to investment, declaring: "If you don’t move, the NRM will move with or without you. We cannot afford to be left behind.”

"This oil refinery is not just about fuel; it is about Uganda producing and exporting refined products instead of importing," he said.

“We must stop exporting raw materials and instead add value to everything we produce,” Museveni added.

The President contrasted Uganda’s slow industrial progress with the UAE’s rapid development, pointing out that a desert nation had built an economic powerhouse while resource-rich Uganda lagged behind.

"People in the desert, where there is no rain, have built an economic empire, while some Ugandans, blessed with fertile land and natural resources, remain poor. We must change this mindset," he said.

Energy minister Ruth Nankabirwa, who signed the deal on Uganda's behalf, said the project aligns with Uganda’s National Oil and Gas Policy and the East African Refineries Development Strategy. She described it as a catalyst for Uganda’s energy security and economic transformation.

"The refinery will create thousands of jobs, develop local expertise, and serve as a springboard for industries such as petrochemicals and fertiliser production," Nankabirwa said.

Beyond the oil deal, Uganda and the UAE investors signed aviation agreements, tree planting, digital land management, logistics and cargo storage, and a digital payment system for government transactions.

Sheikh Mohammed Bin Maktoum, who led the UAE delegation, reaffirmed his commitment to Uganda’s development.

"I am honoured to be here for these projects. As I always say, as long as I am in Uganda, I consider myself Ugandan," he said.