• Uganda targets to start operations at the Kabaale oil refinery between late 2029 and early 2030, with a capacity of 60,000 barrels per day and a $4 billion investment.
• The government will finance 40% of the project, backed by a partnership with UAE-based Alpha MBM, and link it to an industrial park attracting $3–4 billion in investments.
• The refinery aims to cut fuel import costs, save $1.23 billion in foreign currency annually, and supply regional markets such as Tanzania and the Democratic Republic of Congo.

Uganda expects to start operations at its first oil refinery in Kabaale, Hoima District, between the fourth quarter of 2029 and the first quarter of 2030. Michael Nkambo Mugerwa, chief executive officer of Uganda Refinery Holding Company (URHC), made the announcement on Oct. 1 during the Africa Energy Week in Cape Town.

The refinery will process 60,000 barrels per day and require an investment of $4 billion. The government will cover 40% of the funding, while UAE-based Alpha MBM provides the remaining share under an implementation agreement finalized in March 2025. Mugerwa said the facility will integrate production of petrochemicals, kerosene, and gas treatment to expand value-added outputs.

Authorities are developing an industrial park connected to the refinery. The zone has already attracted $3–4 billion of investment, with potential for an additional $1–2 billion, and includes road infrastructure. Irene Bateebe, permanent secretary at the Ministry of Energy and Mineral Development, said the refinery supports Uganda’s industrialization drive and energy security. She cited parallel projects such as railway expansion, plans to diversify power capacity to 10,000 megawatts, and $5 billion invested in power infrastructure.

According to the Petroleum Authority of Uganda, the refinery could save the state more than $1.23 billion annually in foreign exchange by reducing fuel imports. The facility also targets regional exports, with flows planned toward Tanzania and the Democratic Republic of Congo.

This project comes as East Africa remains heavily dependent on imported refined fuel due to a lack of local processing capacity, a challenge highlighted in the African Energy Commission’s August 2025 report Opportunity for a Regional Domestic Market for Oil and Gas – Eastern Africa.

This article was initially published in French by Abdel-Latif Boureima

Adapted in English by Ange Jason Quenum