Uganda is set to build its first crude oil refinery, a 60,000-barrel-per-day (BPD) facility, following a major contract secured by UAE-based Alpha MBM Investments.

This marks a significant step toward energy independence for the East African nation.

The refinery, located in Kabaale, Hoima District, will process locally extracted crude from the Albertine Graben region.

By refining its own oil, Uganda aims to reduce reliance on fuel imports, enhance regional energy security, and create jobs.

Under the deal, Alpha MBM Investments will hold a 60% stake in the project, while Uganda’s state-run National Oil Company (UNOC) retains 40%.

The partnership brings financial strength and technical expertise, ensuring the refinery’s successful development.

Energy Minister Ruth Nankabirwa, highlighted the project’s significance: “This agreement is a major milestone for Uganda. Work on the refinery will begin immediately.”

Uganda’s push for a refinery follows years of planning and negotiations.

In January, the government selected Alpha MBM Investments to spearhead the $4 billion project after ending talks with a previous consortium due to financing delays.

With construction expected to take three years, the refinery is set to boost Uganda’s refining capacity, support industrialization, and attract foreign investment.

It also strengthens Africa’s energy landscape, offering a local alternative to imported petroleum products.

Led by His Highness Sheikh Mohammed bin Maktoum bin Juma Al Maktoum, a member of the Dubai Royal Family, Alpha MBM Investments is expected to provide the necessary capital and expertise to bring the refinery to life.

Once operational, the facility will not only meet Uganda’s fuel needs but also contribute to Africa’s growing refining sector, positioning the country as a key energy player in the region.