Uganda’s long-delayed national oil refinery project has taken a major step forward after the government secured strong backing from a United Arab Emirates (UAE) investor. The $4 billion project, which has faced years of delays, is now expected to move toward a Final Investment Decision (FID) later this year.
The Uganda National Oil Company (UNOC) has signed an agreement with Alpha MBM Investments LLC, a UAE-based firm, to jointly develop the refinery. Under the deal, Alpha MBM will hold a 60 percent stake, while UNOC will retain 40 percent ownership, according to the Uganda Investment Authority.
The signing ceremony was held at State House in Entebbe and was presided over by President Yoweri Kaguta Museveni. It was attended by key figures in Uganda’s energy sector, including Energy Minister Ruth Nankabirwa, UNOC CEO Proscovia Nabbanja, and Alpha MBM Chairman Sheikh Mohammed bin Maktoum Al Juma Maktoum.
The refinery is considered critical to Uganda’s economy. The country currently spends about $2 billion every year on imported petroleum products, a cost the government hopes to significantly reduce once the refinery becomes operational. By refining its own crude oil locally, Uganda aims to cut imports, improve energy security, and earn revenue by exporting refined products to the region.
President Museveni emphasized that the project is about adding value to Uganda’s resources rather than exporting raw materials. He said the refinery will support industrial growth and position Uganda as a key energy player in East Africa.
Energy Minister Ruth Nankabirwa noted that the project will create thousands of jobs, build local skills, and support the development of related industries such as petrochemicals and fertilizer production. She added that Ugandan businesses will benefit through the supply of goods and services linked to the refinery.
With the agreement now in place, Uganda is moving ahead with technical and legal preparations, targeting a Final Investment Decision by July 2026. If completed as planned, the refinery is expected to become one of the largest in East Africa and help transform Uganda into a regional energy hub at a time when global energy markets remain unstable.
The deal also signals growing international confidence in Uganda’s energy sector and highlights Africa’s rising role in meeting future global energy demand.
