uganda-refinary Project (UNOC)|Courtesy

Uganda’s oil refinery is on track to begin 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.

Speaking during the Invest in Uganda panel—hosted by the Uganda National Oil Company (UNOC) at African Energy Week (AEW) 2025 in Cape Town last week—Mugerwa confirmed the project’s development timeline and highlighted key milestones achieved so far.

The refinery will be located in Kabaale, Hoima District, and follows a landmark agreement signed in March 2025 between UNOC and UAE-based Alpha MBM Investments.

Valued at $4 billion, the facility will have a processing capacity of 60,000 barrels per day and will be jointly funded by the two entities, with UNOC holding a 40% stake and Alpha MBM providing the remaining 60%.

“This project goes beyond fuel production—we’re targeting petrochemicals, kerosene, fertilizers, and gas processing,” said Mugerwa.

“The refinery is designed to capture the full value chain.” He also noted that development of the adjacent industrial park is underway, backed by $3–4 billion in investment, with the potential to attract an additional $1–2 billion.

Mugerwa underscored the scale of supporting infrastructure being developed for the industrial park, including roads, water supply systems, and a 200 MW high-voltage power supply.

“Around 15 investors have already committed to the park, which will enhance infrastructure and create a thriving ecosystem around the refinery,” he added.

The project is also expected to deliver regional benefits, with refined products destined for markets in Tanzania and the Democratic Republic of the Congo.

Other panelists highlighted Uganda’s investor-friendly environment. Humphrey Asiimwe, CEO of the Uganda Chamber of Energy and Minerals, pointed to the country’s unique advantages:

“There is peace, security, a young population, and a stable currency. If you invest here and bring in equipment, import tax is 0%. Plus, you gain a springboard to markets in Tanzania, Kenya, and the DRC. If it’s not Uganda, where else would you invest?”

Irene Bateebe, Permanent Secretary at the Ministry of Energy and Mineral Development, emphasized infrastructure as a key driver of economic growth.

“We are developing railways and expanding our diversified energy portfolio to 10,000 MW—including hydro, solar, and nuclear. We have committed $5 billion for power infrastructure,” she said.

Philips Obita, General Manager, Upstream at UNOC, shared updates on the company’s upstream and midstream strategies:

“As a national oil company, we hold commercial interests of up to 150,000 barrels and are participating in the EACOP pipeline.

Oil and gas are finite resources, so we are investing in local content, technology transfer, and building national capacity to manage exploration and infrastructure.”

Obita also noted that five exploration projects and geophysical services are advancing, with seismic studies set for completion in November 2025.