Uganda’s government is currently in talks with an investment firm led by a member of Dubai’s royal family to establish a $4 billion oil refinery. Alpha MBM Investments LLC from the United Arab Emirates was selected by Uganda among five companies bidding for the project, according to Energy and Mineral Development Minister Ruth Nankabirwa in an interview with the BBC Newsday program.
Both parties are expected to finalize the agreement within the next three months. Minister Nankabirwa expressed optimism, stating, “We hope they are not going to spend a lot of time looking for money because they indicated that it’ll be possible to get the money and the technology that we need to refine our crude oil, addressing environmental requirements.”
To address environmental concerns, regulations will be implemented to reduce emissions and minimize the project’s ecological impact, according to the minister.
The government envisions the refinery as a key element in Uganda’s commercial processing of crude oil, contributing to what officials estimate as $20 billion in investments in the sector. Commercial pumping of crude oil is anticipated to commence in 2025.
“The investments in place so far have significantly contributed to the country’s economy—about $8.6 billion—and we anticipate an even greater impact in this period, ranging between $20 billion to $25 billion,” highlighted Minister Nankabirwa.
Uganda is also in the early phases of another oil venture—a 1,443 km (896-mile) pipeline designed to transport crude oil for export from Western Uganda to Tanzania’s Tanga port.
