CAPE TOWN, South Africa, October 7, 2025 — The Uganda Refinery is on track to commence operations between the fourth quarter of 2029 and the first quarter of 2030, according to Michael Nkambo Mugerwa, General Manager of the Uganda Refinery Holding Company.
Mugerwa announced the timeline during the “Invest in Uganda” panel at African Energy Week (AEW): Invest in African Energies 2025 in Cape Town last week.
The landmark Uganda Refinery project, located in Kabaale, Hoima District, represents a key milestone in Uganda’s long-term strategy to achieve energy self-sufficiency, enhance export capacity, and unlock downstream industrialization.
Construction is scheduled to begin in late 2025 following a March 2025 investment agreement between the Uganda National Oil Company (UNOC) and UAE-based Alpha MBM Investments.
Valued at $4 billion, the refinery will have a processing capacity of 60,000 barrels per day and will be jointly financed by the two partners, with UNOC contributing 40% and Alpha MBM providing 60%.
A Fully Integrated Uganda Refinery Project
“The Uganda Refinery goes far beyond fuel production,” Mugerwa explained.
“We are developing a complete petrochemical and gas ecosystem that includes production of fertilizers, kerosene, and other by-products.
The refinery is designed to capture the full value chain, creating industrial and socioeconomic ripple effects across the region.”
Mugerwa highlighted that the refinery’s industrial park development is already in motion, with between $3 billion and $4 billion in committed investment and potential to attract an additional $1–2 billion in secondary capital inflows.
The park will feature critical support infrastructure, including roads, water facilities, and a 200 MW high-voltage power supply.
“About 15 investors have already expressed strong commitment to operating within the industrial park,” Mugerwa said.
“This will create a self-sustaining ecosystem around the Uganda Refinery, supporting energy-intensive industries, creating jobs, and driving local content participation.”
The facility is also expected to serve as a regional export hub, supplying refined petroleum products to neighboring countries including Tanzania and the Democratic Republic of the Congo (DRC).
Strong Investment Climate and Regional Integration
During the AEW 2025 panel, experts and officials emphasized that Uganda continues to be one of Africa’s most stable and attractive investment destinations for energy and infrastructure projects.
Humphrey Asiimwe, CEO of the Uganda Chamber of Energy and Minerals, noted,
“Uganda offers peace, security, and a dynamic young population. Our import tax for investment-related equipment is 0%, and our stable currency provides additional protection for investors.
With access to the DRC, Kenya, and Tanzania, Uganda serves as a natural gateway to East Africa’s energy market.”
Irene Bateebe, Permanent Secretary, Ministry of Energy and Mineral Development, underscored the government’s infrastructure-led development strategy.
“We are expanding Uganda’s energy capacity to 10,000 MW by integrating hydro, solar, and nuclear sources.
In addition, we have committed $5 billion to developing power infrastructure and railway networks, ensuring industrial projects like the Uganda Refinery are well supported.”
UNOC’s Upstream and Midstream Strategy
Philips Obita, General Manager of Upstream at UNOC, outlined how the refinery complements broader upstream and midstream developments in Uganda’s oil and gas value chain.
“UNOC holds commercial interests of up to 150,000 barrels per day and participates actively in the East African Crude Oil Pipeline (EACOP).
As oil and gas are finite resources, we are prioritizing local content development, technology transfer, and the creation of a skilled workforce capable of managing future projects,” Obita said.
He added that UNOC is currently advancing five exploration projects and ongoing geophysical surveys, with seismic studies expected to conclude by November 2025.
A New Era for Uganda’s Industrialization
The Uganda Refinery represents more than an energy project — it marks the dawn of Uganda’s industrial transformation.
Beyond boosting domestic fuel production, it will catalyze investment in petrochemicals, fertilizers, and industrial by-products that strengthen supply chains and reduce import dependence.
Once operational, the refinery will generate thousands of jobs, enhance infrastructure in the Hoima region, and accelerate Uganda’s journey toward energy independence.
Its role in regional trade integration through the ECOWAS and EAC frameworks positions Uganda as a future hub of industrial growth in East and Central Africa.
The Uganda Refinery is set to become a cornerstone of Uganda’s energy future — combining sustainable development, industrial diversification, and cross-border trade.
Distributed by APO Group on behalf of African Energy Chamber.
SOURCE
African Energy Chamber
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