By Dean Lubowa Saava
The Uganda National Oil Company (UNOC) is set to take a 40 percent stake in the new refinery deal signed between the government and Alpha MBM Investments LLC, a UAE-based firm, Chimp Corps report.
Uganda on March 29 signed a historic oil refinery agreement with Alpha MBM Investments LLC, paving the way for the construction of a 60,000-barrel-per-day crude oil refinery in Kabaale, Hoima District.
The deal, witnessed by President Museveni, at State House, Entebbe marks a major milestone in Uganda’s journey toward energy independence and industrialization.
According to a statement from State House, the agreement “will see Alpha MBM Investments LLC take a 60% stake in the refinery, while the Uganda National Oil Company (UNOC) retains 40%.”
A Memorandum of Understanding (MoU) was signed on December 22, 2023, between the government and Alpha MBM Investments LLC from the United Arab Emirates, outlining cooperation and negotiation terms for the Refinery Project.
Negotiations on key commercial agreements with Alpha MBM Investments commenced on January 16, 2024, with their conclusion paving the way for the construction phase.
President Museveni hailed the deal as a game-changer for Uganda’s economy and warned government officials against frustrating investors with bureaucratic delays.
“I want to thank His Highness Sheikh Mohammed Bin Maktoum and our friends from the UAE for their commitment to investing in Uganda,” President Museveni said.
The refinery project will include; a state-of-the-art refinery complex in Kabaale, Hoima, designed to process 60,000 barrels of crude oil per day , a modern storage terminal in Namwabula, Mpigi District, ensuring adequate fuel reserves for national consumption.
The other components are; a 212 km multi-product pipeline, linking the refinery to the storage terminal, guaranteeing efficient transportation of refined products across Uganda and beyond and the Mbegu water abstraction facility, equipped with an advanced water pipeline system to support refinery operations and ensure sustainability.
The development works expected to commence this year, will see Uganda earn at least US$4b (about sh15.2trillion) in investment, on top of the ongoing oil related works, according to UNOC’s documents.
Besides the oil deal, Uganda and the UAE investors also signed five other agreements in various sectors, including the aviation sector, tree planting, a digital land management system, logistics cargo hubs and storage chain facilities, a comprehensive digital payment system for government transactions, streamlining tax collections and financial services and others.
President Museveni also reiterated his government’s commitment to fostering investment and ensuring Uganda benefits from its natural resources. He cautioned against resistance to economic progress, declaring that those who delay investment will be left behind.
UAE investment:
“If you don’t move, the NRM will move with or without you. We cannot afford to be left behind,” he warned.
President Museveni also praised UAE investors for their enterprising spirit, contrasting their success with Uganda’s underutilized potential.
“People in the desert, where there is no rain, have built an economic empire, while some Ugandans, blessed with fertile land and natural resources, remain poor. We must change this mindset,” he said. Reflecting on Dubai’s transformation, President Museveni recalled how he first learned about its rapid development some years back.
“When we returned from fighting Amin, I had never heard of Dubai. It was only a few years ago that I visited and saw very active people. Work with them they are not bringing loans but investments,” he urged.
President Museveni further emphasized that Uganda must move from being a consumer economy to a producer economy, ensuring that its natural resources are processed locally to maximize economic benefits.
“This oil refinery is not just about fuel; it is about Uganda producing and exporting refined products instead of importing,” he said.
“We must stop exporting raw materials and instead add value to everything we produce,” he said.
The President reaffirmed his commitment to removing bottlenecks that hinder investment, assuring investors that Uganda is open for business.
“We are here to work with serious investors who bring capital, knowledge, and long-term benefits to Uganda,” President Museveni declared. “Those who stand in the way of progress will be swept aside,” he added.
On her part, the Minister of Energy and Mineral Development, Hon. Ruth Nankabirwa emphasized that the project aligns with Uganda’s National Oil and Gas Policy (2008) and the East African Refineries Development Strategy.
She described it as an initiative that will not only enhance Uganda’s energy security but also catalyze economic transformation.
Jobs
“The refinery will create thousands of jobs, develop local expertise, and serve as a springboard for industries such as petrochemicals and fertilizer production,” Hon. Nankabirwa said.
“It will also attract Ugandan businesses to participate in the supply of goods and services, boosting local enterprise development,” she added.
Additionally, the minister noted that the project will fully comply with international environmental, health, and safety standards, integrating modern technologies to minimize environmental impact.
On the other hand, His Highness Sheikh Mohammed Bin Maktoum, who led the UAE investors’ delegation, expressed his deep commitment to Uganda, stating that he considers the country his second home and he is dedicated to supporting its development.
“I am honored to be here for these projects. As I always say, as long as I am in Uganda, I consider myself Ugandan. My team and I are here to support the nation and its people because our greatest happiness comes from seeing communities thrive,” Sheikh Maktoum said.
Reflecting on his first meeting with President Museveni nearly two years ago, Sheikh Maktoum praised Uganda’s leadership for its continued support and investment-friendly environment.
“I have never given up on this vision; I deeply appreciate Your Excellency’s support, and this is just the beginning of our journey together. What lies ahead is even greater, and the possibilities are limitless,” he stated.
The event was also attended by the Minister of Finance, Planning & Economic Development, Hon. Matia Kasaija, the Deputy Attorney General, Hon. Jackson Kafuuzi , the Permanent Secretary and Secretary to the Treasury – Ministry of Finance, Mr. Ramathan Ggoobi , the Chief Executive Officer – UNOC, Ms. Proscovia Nabbanja, among others.
