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Uganda has taken a monumental step toward economic transformation with the signing of a $4 billion oil refinery deal with Dubai-based Alpha MBM Investments LLC. The agreement, finalized on March 30, 2025, at State House Entebbe, marks the beginning of a groundbreaking project that will establish a 60,000-barrels-per-day refinery in Kikuube District, located in the Lake Albert Basin. This ambitious initiative is set to redefine Uganda’s energy sector and position the country as a key player in the global oil market.
The deal, signed by Uganda’s Minister of Energy and Mineral Development Ruth Nankabirwa and His Highness Sheikh Mohammed bin Maktoum bin Juma Al Maktoum of Alpha MBM Investments, outlines the design, construction, and operation of the refinery. Under the agreement, Alpha MBM Investments will hold a 60% stake in the project, while the Uganda National Oil Company (UNOC), through its subsidiary Uganda Refinery Holding Company, will retain the remaining 40%. The refinery is expected to be operational by the end of 2026, creating 32,000 direct and indirect jobs in the process.
President Yoweri Museveni hailed the agreement as a game-changer for Uganda’s economy, emphasizing the importance of adding value to the country’s natural resources. “This oil refinery is not just about fuel; it is about Uganda producing and exporting refined products instead of importing. We must stop exporting raw materials and instead add value to everything we produce,” Museveni stated during the signing ceremony. He highlighted the refinery’s potential to catalyze industrial growth, attract investment, and boost local enterprise development.
The refinery project is part of a larger infrastructure plan that includes the construction of a 320-million-litre Kampala Oil Storage Terminal in Mpigi District, a 212-kilometer finished product pipeline linking the refinery to the storage terminal, and a water abstraction facility in Mbegu. These developments are expected to enhance Uganda’s energy security, reduce reliance on imported petroleum products, and support the country’s Vision 2040 development agenda.
Energy Minister Nankabirwa underscored the significance of the project, noting its alignment with Uganda’s 2008 National Oil and Gas Policy and the East African Refineries Development Strategy. She highlighted the refinery’s potential to create thousands of jobs, develop local expertise, and serve as a springboard for industries such as petrochemicals and fertilizers. “This initiative will not only transform Uganda’s energy sector but also attract Ugandan businesses to participate in the supply of goods and services, hence boosting local enterprise development,” Nankabirwa stated.
The involvement of Alpha MBM Investments, led by Sheikh Mohammed bin Maktoum, reflects the growing interest of UAE investors in Uganda’s economic potential. Sheikh Mohammed expressed his commitment to supporting Uganda’s growth and development, stating, “I consider myself Ugandan as long as I’m in Uganda. My team and I are here to help the country and its citizens.”
The refinery deal has been widely praised as a significant milestone in Uganda’s journey toward economic self-reliance. Analysts have described the project as a strategic move to harness the country’s oil reserves and maximize their economic benefits. However, challenges remain, including the need to ensure compliance with international safety and environmental standards and to address potential bureaucratic hurdles that could delay implementation.
As Uganda embarks on this transformative journey, the focus remains on leveraging the refinery project to drive sustainable development and improve the livelihoods of its citizens. The $4 billion deal with Alpha MBM Investments represents a bold step forward, positioning Uganda as a regional leader in energy production and industrial growth.