Oil & Gas

Uganda’s long-anticipated oil refinery is now expected to come online in late 2029 or early 2030, marking a significant milestone in the country’s long-term strategy to develop its petroleum sector and expand downstream capacity. Speaking during the Invest in Uganda panel at African Energy Week (AEW) 2025 in Cape Town, Uganda Refinery Holding Company General Manager, Michael Nkambo Mugerwa, confirmed that the $4 billion project in Kabaale, Hoima District will proceed through a partnership between the Uganda National Oil Company (UNOC) and UAE-based Alpha MBM Investments. UNOC will retain a 40% stake, while Alpha MBM will finance the remaining 60%.

According to Mugerwa, the 60,000-barrel-per-day refinery is designed to go beyond conventional fuel production and will include petrochemicals, kerosene, fertilizers, and gas processing, capturing the full value chain of Uganda’s oil industry. The facility will anchor a wider industrial park already attracting investor interest. Mugerwa revealed that between $3–4 billion has already been committed to developing the park, with a further $1–2 billion in potential investment. Critical infrastructure — including roads, water supply systems, and a 200 MW high-voltage power supply — is also underway to support the development.

The refinery is also positioned to serve regional markets, with plans to export refined products to neighboring Tanzania and the Democratic Republic of the Congo. Uganda Chamber of Energy and Minerals CEO, Humphrey Asiimwe, emphasized the country’s competitive investment climate, citing peace, security, a young workforce, and favorable tax policies such as zero import duties on equipment. “Uganda offers a strategic springboard to regional markets — if not here, then where?” he asked during the panel.

Government officials also highlighted broader national infrastructure and energy investments supporting the oil sector. Irene Bateebe, Permanent Secretary at the Ministry of Energy and Mineral Development, said the government is expanding transport links and its energy generation portfolio to 10,000 MW, with $5 billion committed to power infrastructure. UNOC’s Upstream General Manager, Philips Obita, added that the company is active in exploration and midstream operations, holding commercial interests of up to 150,000 barrels and participating in the East African Crude Oil Pipeline (EACOP). With five exploration projects underway and seismic studies due by late 2025, Uganda’s energy ambitions are rapidly materializing — with the Hoima refinery and industrial park poised to shift the country from crude exporter to value-added producer.