Uganda has formally signed a $4 billion implementation agreement with UAE-based Alpha MBM Investments LLC to build a 60,000 barrels-per-day (bpd) oil refinery in Kabaale, Hoima District.

According to the Uganda Investment Authority, Alpha MBM will hold 60%, while the Uganda National Oil Company (UNOC), via its holding arm, will take the remaining 40%.

This refinery forms part of Uganda’s broader strategy to add value to its crude, not just export it. President Yoweri Museveni called the refinery a “game-changer,” saying it could transform the country from a raw-material exporter to a refined-product producer.

The project also includes infrastructure: a 212-kilometre multi-product pipeline from Kabaale to a storage terminal in Mpigi District, a water intake system from Lake Albert, and a major fuel storage terminal.

Timelines are ambitious: according to the energy ministry and project partners, Front-End Engineering Design (FEED) contracts are expected to be signed soon, with construction projected to start by late 2025 and commissioning in 2028.

Beyond fuel production, the refinery is expected to generate thousands of jobs, boost local skills, and spur related industries like petrochemicals and fertilizers.