Uganda has taken a major step toward energy independence and industrial growth by securing a deal with Alpha MBM Investments LLC, a United Arab Emirates (UAE)-based firm, to construct a 60,000-barrels-per-day oil refinery in Hoima District.

The agreement, signed by Energy Minister Ruth Nankabirwa, marks a turning point in Uganda’s efforts to refine its own crude oil instead of relying on imported petroleum products. 

President Yoweri Museveni, who witnessed the signing, emphasized that the refinery will enhance energy security, stabilize fuel prices, and create new economic opportunities.

“The refinery is not just about fuel but also about Uganda producing and exporting refined products instead of importing them," Museveni stated, “We must stop exporting raw materials and instead add value to everything we produce."

For years, Uganda has depended on imported fuel, mainly from Kenya’s Mombasa port, exposing the country to supply disruptions and fluctuating prices. The refinery is expected to change this dynamic by producing petrol, diesel, kerosene, and other petroleum products domestically.

The project had previously faced setbacks, including delays in final investment decisions with the US-led Albertine Graben Refinery Consortium. However, the new agreement with the UAE firm has revived momentum, positioning Uganda to fully benefit from its oil resources discovered in 2006.

Beyond refining crude oil, Uganda also signed five additional agreements with UAE investors in aviation, logistics, digital land management, cargo storage, and a government digital payment system. These deals underscore Uganda’s deepening economic ties with the UAE, which has become a crucial partner in infrastructure development.

With implementation now in motion, attention will shift to securing financing and finalizing construction timelines. Once operational, the refinery is expected to transform Uganda’s energy landscape, reduce reliance on foreign refined fuel, and propel the country’s broader industrialization agenda.