Uganda took a significant step toward bolstering its energy sector by, signing a landmark oil refinery agreement with UAE-based Alpha MBM Investments.
The deal, announced by President Yoweri Museveni’s office, grants the Emirati firm a 60 percent stake in a planned 60,000-barrel-per-day crude oil refinery in Kabaale, Hoima District. The state-owned Uganda National Oil Company (UNOC) will hold the remaining 40 percent, securing a pivotal partnership for the nation’s hydrocarbon ambitions.
The refinery, valued at $4 billion, is a cornerstone of Uganda’s strategy to capitalize on its emerging oil industry. Earlier this year, Energy and Mineral Development Minister Ruth Nankabirwa revealed that negotiations with Alpha MBM Investments had been underway since January 16, with an initial target to finalize key commercial terms within three months. This agreement marks the culmination of those efforts, positioning Uganda closer to refining its crude oil domestically.
Alpha MBM Investments, led by Sheikh Mohammed bin Maktoum of Dubai’s royal family, brings significant financial muscle to the project. The firm’s involvement underscores growing UAE interest in East African energy markets. Beyond the refinery, the signing ceremony also saw Uganda and UAE investors ink five additional agreements spanning various sectors, hinting at a broader economic alliance.
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While Ugandans dominate employment in the oil sector, securing the majority of jobs, the statement noted that high-value contracts—like this refinery deal—often go to foreign players, a dynamic that has sparked local debate. For now, the focus remains on the refinery’s potential to transform Uganda’s energy landscape, reducing reliance on imported fuel and boosting economic self-sufficiency.
The Kabaale refinery is expected to play a vital role in processing Uganda’s crude oil reserves, discovered in the Albertine Rift Basin nearly two decades ago. As construction timelines and operational details firm up, all eyes will be on how this partnership shapes the country’s path to becoming a regional energy hub.
