The Africa Finance Corporation (AFC) has advanced $20 million for the construction of a 60,000 barrel per day oil refinery in Uganda. This first disbursement paves the way for a $4.27 billion project.

Financing papers were signed in the presence of the AFC managing director Ammadou Wadda, African Development Bank president Akinwumi Adesina and representatives of the Albertine Graben Refinery Consortium (AGRC), the consortium that will execute the work.

Irene Muloni, Uganda's Minister of Energy, said she was delighted with the operation and noted that several other investors have committed to participate in the project including Prosper Africa Fund, an initiative of the US government that provides business opportunities in Africa, and another US institution called the Trace and Development Agency.

Initially, the Ugandan government was considering opening the refinery's capital to the East African states and the local media was concerned about the level of debt that will result from the project.

Olivier de Souza