UGANDA has sealed a major oil infrastructure deal with UAE-based Alpha MBM Investments, granting the firm a 60 percent stake in the country’s long-awaited crude oil refinery project, according to a statement from President Yoweri Museveni’s office.
The $4bn refinery, which will be built in Kabaale, Hoima District, is expected to process 60,000 barrels of oil per day and is seen as a crucial pillar in Uganda’s plans to harness its oil reserves and become energy self-sufficient.
Uganda’s state-run Uganda National Oil Company (UNOC) will retain the remaining 40 percent equity in the facility, ensuring a strategic national interest in the downstream oil project.
The agreement was signed on March 29 and marks a milestone in Uganda’s effort to industrialise and diversify its economy. The project is also a key component of the country’s broader hydrocarbons development strategy.
The deal follows months of negotiations that kicked off on 16 January this year. According to Energy Minister Ruth Nankabirwa, both parties aimed to finalise the commercial terms within three months, culminating in this weekend’s signing ceremony.
Reuters, which first reported the development, notes that this refinery forms a core part of Uganda’s emerging oil sector infrastructure. The sector is projected to significantly boost the East African nation’s GDP and reduce dependence on imported petroleum products.
Strategic partnership with UAE royalty-led firm
Alpha MBM Investments, the UAE firm involved in the deal, is chaired by Sheikh Mohammed bin Maktoum, a member of Dubai’s royal family. The company’s investment signals growing confidence in Uganda’s oil potential and regional stability.
In addition to the refinery agreement, Uganda also signed five other investment deals with UAE partners across sectors, further deepening bilateral ties between the two nations.
President Museveni has long advocated for local processing of Uganda’s crude to maximise value, reduce fuel import costs, and create jobs. The Hoima refinery is a cornerstone of that vision.
A cornerstone of Uganda’s energy strategy
Once operational, the refinery will process crude from Uganda’s Albertine Graben region, home to an estimated 6.5 billion barrels of oil, of which 1.4 billion are recoverable. The project complements other infrastructure developments such as the East African Crude Oil Pipeline (EACOP).
Uganda aims to commence oil production this year, and the refinery is expected to play a key role in supplying refined petroleum to both domestic and regional markets.
This latest development underscores a strong shift towards long-term energy independence for Uganda, while also opening the door to new investment flows from the Gulf region.
