Entebbe — Uganda has signed a landmark oil refinery agreement with UAE-based Alpha MBM Investments LLC, setting the stage for the construction of a 60,000-barrel-per-day crude oil refinery in Kabaale, Hoima District.
The deal, witnessed by President Yoweri Kaguta Museveni at State House Entebbe, is being hailed as a major stride toward energy independence and industrial transformation.
Under the agreement, Alpha MBM takes a 60% stake in the refinery, with the Uganda National Oil Company (UNOC) retaining 40%.
“This is a game-changer for our economy,” President Museveni declared at the high-level signing ceremony. “I thank His Highness Sheikh Mohammed Bin Maktoum and our friends from the UAE for investing in Uganda. We must not allow bureaucracy to frustrate such progress.”
The multi-billion-dollar project includes a state-of-the-art refinery in Kabaale, Hoima; a fuel storage terminal in Namwabula, Mpigi; a 212km multi-product pipeline connecting the refinery and terminal and the Mbegu water abstraction facility to support operations.
President Museveni used the occasion to deliver a stern warning to officials who delay investment. “If you don’t move, the NRM will move with or without you. We cannot afford to be left behind,” he said.
He also praised the UAE’s entrepreneurial spirit, contrasting it with Uganda’s underutilized potential. “People in the desert, where there is no rain, have built an empire. Meanwhile, some Ugandans, blessed with fertile land and oil, are still poor. This mindset must change,” he said.
Reflecting on Dubai’s transformation, Museveni noted: “When we returned from fighting Amin, I had never heard of Dubai. But today, it is a global economic hub. These people are not giving us loans — they are bringing investments.”
The President emphasized the importance of shifting Uganda from a raw material exporter to a value-adding producer. “This refinery is not just about fuel. It’s about producing refined products and creating jobs. We must stop exporting raw materials and instead add value locally.”
Energy Minister Hon. Ruth Nankabirwa affirmed the project’s alignment with Uganda’s National Oil and Gas Policy (2008) and the East African Refineries Development Strategy.
“This refinery will strengthen energy security, create thousands of jobs, and spur industries like petrochemicals and fertilizers,” she said. “The project will also meet international standards on environmental, health, and safety regulations,” she added.
In addition to the oil refinery deal, Uganda and UAE investors signed five other cooperation agreements covering aviation, tree planting, digital land systems, logistics and cargo hubs, and a unified digital payment system for government services.
Speaking at the event, Sheikh Mohammed Bin Maktoum, who led the UAE delegation, expressed deep commitment to Uganda. “This is my second home. Our greatest happiness comes from seeing communities thrive. I will continue supporting Uganda’s development.”
Sheikh Maktoum also recalled his first meeting with President Museveni two years ago. “This is only the beginning. The possibilities ahead are limitless,” he said.
The signing ceremony was attended by several top government officials, including Finance Minister Hon. Matia Kasaija, Deputy Attorney General Hon. Jackson Kafuuzi, Treasury Secretary Ramathan Ggoobi, and UNOC CEO Proscovia Nabbanja.
