Uganda’s oil Refinery Taking shape, more than 50% complete
Uganda’s long-anticipated oil refinery project is steadily progressing, signalling a decisive step toward the country’s goal of transforming its oil discoveries into a powerful engine for national development.
The Uganda National Oil Company (UNOC), through its subsidiary the Uganda Refinery Holding Company, has entered a strategic partnership with Alpha MBM Investments to develop a modern refinery designed to process 60,000 barrels of crude oil every day.
Planned for Kabaale in Hoima District, at the heart of the Albertine Graben, the refinery is intended to be the centrepiece of Uganda’s broader petroleum strategy. By refining crude locally, Uganda aims to reduce dependence on imported petroleum products, create new industrial value chains, and secure a reliable supply of fuels such as diesel, petrol, and aviation kerosene for domestic and regional markets. Officials say the project will also serve as a catalyst for investment in related industries, from petrochemicals to plastics and fertilizers, stimulating manufacturing and job creation.
The Uganda Refinery Holding Company was established to safeguard and manage the government’s equity in the project. Its partnership with Alpha MBM Investments brings in much-needed private capital and technical expertise. Early work includes detailed engineering designs, environmental and social impact assessments, and the complex financial structuring required to meet international standards. This collaborative approach is meant to ensure the refinery is commercially viable while respecting environmental and community concerns.
Local communities are already beginning to see changes. The government has prioritized infrastructure development around Kabaale, with new roads, improved power connections, and upgraded social services being planned to support the refinery’s construction and future operation. Thousands of direct and indirect jobs are expected, ranging from skilled engineering and construction positions to opportunities for local suppliers of goods and services. Training programs are also being designed to equip Ugandans with the technical skills needed for the oil and gas industry.
Economists and energy analysts believe the refinery will have a ripple effect across the region. With East and Central Africa experiencing growing energy demands, Uganda’s facility could become a hub for exporting refined products to neighbouring countries such as Rwanda, South Sudan, and the Democratic Republic of Congo. This would not only strengthen Uganda’s trade position but also enhance regional energy security.
The project is also viewed as a cornerstone of Uganda’s wider oil production plans. Commercial oil discoveries in the Albertine Graben—estimated at billions of barrels—are expected to come on stream in the next few years. By ensuring that a significant share of this crude is refined domestically, Uganda hopes to capture more value from its natural resources and reduce vulnerability to global market fluctuations.
While the refinery is ambitious, stakeholders acknowledge that careful management is essential. Financing large-scale infrastructure, maintaining environmental safeguards, and ensuring transparent governance will all be critical to success. UNOC officials have emphasized that lessons learned from other oil-producing nations are being incorporated to avoid the so-called “resource curse” and to ensure revenues benefit all Ugandans.
For the residents of Hoima and the wider country, the steady progress of the refinery is a sign that Uganda’s oil era is no longer a distant promise but an emerging reality. As groundwork continues and final investment decisions near, the Kabaale refinery stands as a symbol of the country’s determination to harness its natural wealth for long-term prosperity—transforming crude potential into refined opportunity.
