Uganda’s long-anticipated oil refinery is set to commence operations between late 2029 and early 2030, according to Michael Nkambo Mugerwa, General Manager of the Uganda Refinery Holding Company (URHC).
Speaking at the Invest in Uganda panel, hosted by the Uganda National Oil Company (UNOC) during African Energy Week (AEW) 2025 in Cape Town, Mugerwa confirmed the revised project timeline and shared updates on ongoing development.
The $4 billion refinery, with a capacity of 60,000 barrels per day, will be built in Kabaale, Hoima District, under a joint venture between UNOC and Alpha MBM Investments, a UAE-based firm. The agreement, expected to be signed in March 2025, will see UNOC hold a 40% stake, while Alpha MBM contributes 60% of the financing.
“This project goes beyond fuel production,” Mugerwa explained. “We are targeting petrochemicals, fertilizers, kerosene, and gas processing. The refinery is designed to capture the full value chain.”
He also highlighted progress on the Kabaale Industrial Park, which will complement the refinery with an additional $3–4 billion in investment, and the potential to attract another $1–2 billion. Infrastructure development—including roads, water systems, and a 200 MW high-voltage power supply—is underway, with 15 investors already committed.
“The industrial park will strengthen infrastructure and create an ecosystem around the refinery,” Mugerwa noted, adding that regional markets in Tanzania and the Democratic Republic of the Congo (DRC) will also benefit from the project’s outputs.
Other panelists underscored Uganda’s attractiveness to investors. Humphrey Asiimwe, CEO of the Uganda Chamber of Energy and Minerals, cited peace, security, a young workforce, and stable currency as key advantages. “Import tax is 0% for investors bringing equipment. With access to Tanzania, Kenya, and DRC markets, Uganda offers a unique regional hub,” he said.
Irene Bateebe, Permanent Secretary of the Ministry of Energy and Mineral Development, emphasized ongoing infrastructure expansion, including railway development and efforts to grow Uganda’s energy portfolio to 10,000 MW through hydro, solar, and nuclear sources. “We have committed $5 billion for power infrastructure,” she added.
Meanwhile, Phillips Obita, General Manager of UNOC Upstream, outlined the company’s broader strategy, which includes commercial interests in up to 150,000 barrels, participation in the EACOP pipeline, and investments in local content and technology transfer. He said five exploration projects and geophysical studies are underway, with seismic surveys expected to conclude by November 2025.
Once completed, the Hoima refinery is expected to transform Uganda into a regional energy hub, reducing import dependence and boosting economic growth through value addition and industrial development.
Source:Africa Publicity
