Uganda is preparing to transform its energy and industrial landscape with the Kabaale oil refinery in Hoima district, scheduled to begin operations in the fourth quarter of 2029 or early 2030. The timeline was confirmed by Michael Nkambo Mugerwa, General Manager of the Uganda Refinery Holding Company.
The $4 billion project, equivalent to 15.2 trillion Ugandan shillings, is a joint venture between the Uganda National Oil Company, which holds a 40% stake, and UAE-based Alpha MBM Investments, which funds the remaining 60%. The refinery will have a capacity to process 60,000 barrels per day and aims to capture the full value chain by producing not only fuel but also petrochemicals, kerosene, fertilizers and other industrial inputs.
Alongside the refinery, an industrial park is under development, attracting between $3 billion and $4 billion in current investment, with expectations of an additional $1 billion to $2 billion. Fifteen investors have already committed to projects within the park, which will benefit from comprehensive infrastructure including roads, a 200-megawatt high-voltage power supply and water systems. The infrastructure is designed to support not only domestic energy needs but also regional exports to Tanzania and the Democratic Republic of the Congo, positioning Uganda as a regional energy hub.
The country is expanding its energy portfolio to 10,000 megawatts, including hydro, solar and nuclear power, with $5 billion already committed to upgrading and expanding power infrastructure. Upstream operations are also advancing, with commercial interests of up to 150,000 barrels and active participation in the East African Crude Oil Pipeline. Five exploration projects are underway, and seismic studies for new reserves are expected to be completed by November 2025.
With funding secured, timelines confirmed and infrastructure development underway, the Kabaale refinery is set to be a strategic engine for Uganda’s industrialization and energy independence, strengthening its role in the East African energy landscape.
Source: nilepost.co.ug