Uganda has received the substantial backing of a UAE-based investor to advance the national refinery project this year. The transformation of the African energy market has reached a tipping point this year as the vast majority of nations aim to increase energy output capacity to meet the expected increase in demand for essential energy. The Ugandan national refinery has faced several delays over the years, but has finally received the necessary investments from the UAE investor.
Uganda is aiming to become the backbone of the African energy market
Uganda’s long-delayed refinery project is finally gaining momentum following years of delays. The East African nation has been working diligently to advance the project and has now secured the backing of a significant UAE-backed investor.
The rapid transformation of the global energy market has placed many countries at peril of not meeting the anticipated increase in energy demand across the market. To address concerns, Uganda has now partnered with the UAE-based Alpha MBM Investments LLC to advance the $4 billion national refinery project to reach a Final Investment Decision later this year.
Uganda’s government has signed a deal to advance the national refinery project this year
The Uganda National Oil Company (UNOC) has signed an agreement with the UAE-based Alpha MBM Investments to work together to bring the national refinery project to fruition, following years of delays and issues hampering the project.
The national refinery has become essential to the nation’s economy as Uganda regularly sees a sky-high fuel import bill. At the moment, the East African nation spends an estimated $2 billion each year on imported petroleum products.
To address the situation, a signing ceremony to celebrate the new deal with Alpha was held at the State House in Entebbe. This ceremony was led by the nation’s president and saw the whos’who of the energy market in the nation in attendance, including:
- Minister of Energy and Mineral Development, Hon. Ruth Nankabirwa
- Uganda National Oil Company CEO, Proscovia Nabbanja
- Chairman, Alpha MBM Investments LLC, Sheikh Mohammed bin Maktoum Al Juma Maktoum
Africa is set to become a major player across the international energy market this year
The deal with the UAE-based investor provides a framework for substantial increases in outside firms investing in Uganda and Africa overall. With the current energy market in a tailspin thanks to the situation in South America and the ongoing war in Ukraine, nations are developing energy projects that will boost energy security in the volatile energy market.
As new refineries are set to drastically alter energy output for some of the largest energy countries in the world, Uganda is fostering a new era that will see the national refinery becoming one of the largest in East Africa.
“The oil refinery is not just about fuel; it is about Uganda producing and exporting refined products instead of importing. We must stop exporting raw materials and instead add value to everything we produce,” – Uganda’s President Yoweri Kaguta Museveni
The Ugandan Investment Authority has confirmed that Alpha MBM will hold a 60% stake in the national refinery project while the Uganda National Oil Company will hold onto the remianing 40% stake.
“The projects will create thousands of jobs, develop local expertise, and serve as a springboard for industries for such as petrochemical and fertilizer production. It will also attract Ugandan businesses to participate in the supply of goods and services, and boost local enterprise development,” – Energy Minister Ruth Nankabirwa
Uganda is aiming to become an energy hub in East Africa thanks to its new refinery
Following the signing of the deal with Alpha, Uganda can now progress with the relevant documentation to advance the project and has targeted a Final Investment Decision by July of this year. Investing in major refinery upgrades can often take years to approve, but thankfully, the Ugandan government has provided a welcoming environment for outside investments in its national refinery.
