Uganda is positioning itself for a major economic shift as plans for its long-awaited oil refinery move closer to reality, setting the stage for large-scale industrialization and regional energy dominance.
According to Uganda Refinery Holding Company General Manager Michael Nkambo Mugerwa, the refinery expected to start operations between late 2029 and early 2030 will not only produce fuel but also unlock a multi-billion-dollar industrial ecosystem in the Albertine region.
“This project goes beyond refining crude oil. It’s about creating a fully integrated value chain with petrochemicals, fertilizers, gas processing, and kerosene production,” Mugerwa said during the Invest in Uganda panel at the African Energy Week 2025 in Cape Town.
The refinery, located in Kabaale, Hoima District, will operate under a $4 billion joint venture between the Uganda National Oil Company (UNOC) and UAE-based Alpha MBM Investments, with UNOC holding 40% and Alpha MBM 60%.
Beyond oil processing, the 60,000-barrel-per-day refinery will serve as the anchor of an ambitious industrial park already drawing massive investor interest. Mugerwa revealed that between $3–4 billion has already been committed, with a further $1–2 billion in potential investments anticipated.
Infrastructure development is progressing rapidly—new roads, a modern water system, and a 200 MW high-voltage power line are under construction to support the park’s growth.
“About 15 investors have already committed to the industrial park,” Mugerwa said.
He added: “We are building an ecosystem that will not only refine fuel but also manufacture and export finished products. This is about turning Uganda into an energy and industrial hub for East Africa.”
Once complete, Uganda’s refinery will supply refined products to Tanzania, Kenya, and the Democratic Republic of Congo, reducing the region’s dependency on imported fuel.
This development mirrors a continental shift toward energy independence, inspired by successful ventures like Nigeria’s $20 billion Dangote Refinery, which has drastically reduced Nigeria’s fuel imports this year.
At the same panel, Humphrey Asiimwe, CEO of the Uganda Chamber of Energy and Minerals, highlighted Uganda’s stable macroeconomic environment and policy incentives.
“There is peace, security, a young population, and a stable currency,” he said. “Import tax on equipment is zero, and investors can access markets in Tanzania, Kenya, and the DRC. Uganda is the region’s best-kept investment secret.”
Irene Bateebe, Permanent Secretary in the Ministry of Energy and Mineral Development, underscored the government’s heavy investment in infrastructure to support the sector.
“We’re expanding our energy portfolio to 10,000 MW with hydro, solar, and nuclear power. Over $5 billion has been committed to power infrastructure,” she said. “We’re also revamping rail and transport links to efficiently move refined products and industrial goods.”
UNOC’s General Manager for Upstream, Philips Obita, said Uganda is deliberately investing in local content and technology transfer.
“We hold commercial interests of up to 150,000 barrels and are involved in the EACOP pipeline,” he said. “Oil and gas are finite resources, so we’re building the skills and infrastructure to sustain this sector beyond the wells.”
He added that five exploration projects are underway, with seismic surveys expected to conclude by November 2025.
Once commissioned, the refinery and industrial park will transform Uganda from a crude exporter into a value-adding manufacturing powerhouse, aligning with the country’s Vision 2040 and industrialization strategy.
Just as Dangote’s refinery redefined Nigeria’s energy story, Uganda’s project could become East Africa’s blueprint, a model for African nations turning natural resources into national prosperity.
The refinery is positioned in a broader downstream / industrial strategy (refining ,petrochemicals ,fertilizer , gas processing) and is aligned with the development of an industrial park around it.