Uganda has announced plans to commission the long-awaited Kabaale oil refinery in Hoima District by 2030. The $4 billion project, designed to process 60,000 barrels of crude oil per day, is expected to transform the country’s energy sector and reduce dependence on imported fuel.
Under the financing structure, the Ugandan government will contribute 40%, while UAE-based Alpha MBM will provide the remaining share, following an implementation agreement signed in March 2025.
The refinery will be integrated with facilities for petrochemicals, kerosene production, and gas treatment, creating opportunities for value-added industries. Alongside, an industrial park is under development, which has already attracted between $3–4 billion in investments, with potential for up to $2 billion more.
Once operational, the refinery is expected to save Uganda about $1.23 billion annually in foreign exchange by cutting fuel imports. It will also position the country as a regional supplier, serving markets in Tanzania, the Democratic Republic of Congo (DRC), and beyond.
Authorities believe the project will not only strengthen energy security but also drive industrialization, job creation, and economic growth in Uganda and the wider East African region.
