Uganda is advancing plans for its Kabaale oil refinery, a major infrastructure project designed to bolster the country’s energy sector and attract regional investment.
The refinery, with a processing capacity of 60,000 barrels per day, is expected to start operations in the fourth quarter of 2029 or the first quarter of 2030, officials confirmed.
Speaking at the “Investing in Uganda” panel during Africa Energy Week 2025 in Cape Town, Michael Nkambo Mugerwa, managing director of the Uganda Refinery Holding Company, said the project is a joint venture between the Uganda National Oil Company (UNOC) and Emirati investor Alpha MBM Investments.
“This project goes beyond fuel production: we are interested in petrochemicals, kerosene, fertilizers, and gas processing.
The refinery is designed to tap into the entire value chain,” he stated.
The $4 billion facility will see 40% of funding provided by UNOC and 60% by Alpha MBM. It is being built in Kabaale, Hoima district, alongside a dedicated industrial park that is attracting additional investment of between $3 billion and $4 billion, with potential for up to $2 billion more.
Mugerwa said that about fifteen investors have already committed to the park, which will support a broader ecosystem around the refinery, including infrastructure such as roads, water facilities, and a 200 MW high-voltage power supply.
Products from the refinery are expected to supply both domestic and regional markets, particularly Tanzania and the Democratic Republic of Congo. Humphrey Asiimwe, CEO of the Uganda Energy and Minerals Chamber, praised Uganda’s investment climate, citing its stability, security, tax incentives, and access to neighboring markets.
Other speakers highlighted Uganda’s efforts to strengthen its energy infrastructure. Irene Bateebe, Permanent Secretary of the Ministry of Energy, pointed to investments in electricity and rail networks, aimed at creating a diversified energy portfolio of 10,000 MW. Meanwhile, Philips Obita, UNOC’s Managing Director of Upstream, outlined upstream and downstream initiatives, including the EACOP pipeline, exploration projects, and upcoming seismic studies. “We are investing in local content, technology transfer, and developing our capabilities to manage exploration and infrastructure ourselves,” he added.
The Kabaale refinery is seen as a cornerstone project for Uganda, signalling the country’s ambition to transform its oil resources into a fully integrated petrochemical hub and to strengthen its position in the East African energy market.
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