Dignitaries, led by President Museveni, display the signed agreements
HABARI DAILY I Kampala, Uganda I Uganda has signed a historic oil refinery agreement worth $4 billion (Shs14.6 trillion) with Alpha MBM Investments LLC, a UAE-based firm, paving the way for the construction of a 60,000-barrel-per-day crude oil refinery in Kabaale, Hoima District.
Signed on Saturday, 29th March 2025, the agreement is similar to the host Government agreement signed under the crude oil pipeline project, and sets a framework for the investment, timelines for the works and obligations for both parties.
The deal, witnessed by President Yoweri Museveni, at State House, Entebbe marks a major milestone in Uganda’s journey toward energy independence and industrialization.
The agreement, signed at a high-level ceremony, will see Alpha MBM Investments LLC take a 60% stake in the refinery, while the Uganda National Oil Company (UNOC) retains 40%.
Dr Ruth Nankabirwa Ssentamu (R), UNOC’s Proscovia Nabbanja and the Alpha MBM Investments LLC representative appending their signatures
The refinery project will include a state-of-the-art refinery complex in Kabaale, Hoima, designed to process 60,000 barrels of crude oil per day, a modern storage terminal in Namwabula, Mpigi District, which will ensure adequate fuel reserves for national consumption.
The other components include a 212 km multi-product pipeline, linking the refinery to the storage terminal, guaranteeing efficient transportation of refined products across Uganda and beyond and the Mbegu water abstraction facility, equipped with an advanced water pipeline system to support refinery operations and ensure sustainability.
During the signing ceremony, President Museveni also reiterated his government’s commitment to fostering investment and ensuring Uganda benefits from its natural resources.
A Kodak moment following the signing of the agreement
He cautioned against resistance to economic progress, declaring that those who delay investment will be left behind.
President Museveni also praised UAE investors for their enterprising spirit, contrasting their success with Uganda’s underutilized potential.
“People in the desert, where there is no rain, have built an economic empire, while some Ugandans, blessed with fertile land and natural resources, remain poor. We must change this mindset,” he said.
President Museveni further emphasized that Uganda must move from being a consumer economy to a producer economy, ensuring that its natural resources are processed locally to maximize economic benefits.
“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,” he said.
Dr Ruth Nankabirwa Ssentamu, Uganda’s Minister of Energy and Mineral Development, emphasized that the project aligns with Uganda’s National Oil and Gas Policy (2008) and the East African Refineries Development Strategy.
The speeches proceeding the signing
She described it as an initiative that will not only enhance Uganda’s energy security but also catalyze economic transformation.
“The refinery will create thousands of jobs, develop local expertise, and serve as a springboard for industries such as petrochemicals and fertilizer production. It will also attract Ugandan businesses to participate in the supply of goods and services, boosting local enterprise development,” said Nankabirwa.
Nankabirwa further noted that the project will fully comply with international environmental, health, and safety standards, integrating modern technologies to minimize environmental impact.
His Highness Sheikh Mohammed Bin Maktoum, who led the UAE investors’ delegation, expressed his deep commitment to Uganda, stating that he considers the country his second home and he is dedicated to supporting its development.
Officials append their signatures on the agreement
“I am honored to be here for these projects. As I always say, as long as I am in Uganda, I consider myself Ugandan. My team and I are here to support the nation and its people because our greatest happiness comes from seeing communities thrive,” he said.
The event was also attended by the Minister of Finance, Planning and Economic Development. Matia Kasaija, the Deputy Attorney General, Jackson Kafuuzi, the Permanent Secretary and Secretary to the Treasury – Ministry of Finance, Ramathan Ggoobi , the Chief Executive Officer – UNOC, Proscovia Nabbanja, among others.
What you need to know:
1- The agreement has given a greenlight for the Government and its partner to start the design, construction and operation of the 60,000-barrels-per-day refinery in Hoima district.
2- Uganda and its partner have agreed that construction of the refinery is concluded in 3 years, meaning that Uganda will start producing its refined petroleum products two years after the first oil, which is expected next year.
3- Alpha MBM, which is led by His Highness Sheik Mohammed bin Maktoum bin Juma Al Maktoum, is a member of the Dubai Royal Family.
4- The Uganda National Oil Company (UNOC, through its subsidiary, Uganda Refinery Holding Company, will hold 40% stake in the refinery project on behalf of Uganda.
5- The Uganda Government is expected to commit funds for UNOC to meet its cash calls, which is now estimated between $3.5 billion to $4 billion.
6- Government has fully acquired all the land needed for the refinery in Hoima, but its yet to fully acquire the land for the finished product pipeline stretching from Hoima to Mpigi.
7- Government data shows that 75% of the project-affected persons under the finished product pipeline have been fully compensated, while the remaining 25% will be cleared before the end of this year – 2025.
8- Uganda and the UAC investors have also signed five other agreements in areas including aviation, tree planting, digital land management, logistics cargo hubs and storage chain facilities a comprehensive digital payment system for government transactions, streamlining tax collections and financial services and others.
