Uganda has committed to fully financing its $4 billion oil refinery through equity, with UAE-based Alpha MBM Investments pledging funding over a three-year period.
The country’s Cabinet recently approved the equity-based financing structure, marking a departure from traditional international project financing. The decision reflects a strategic shift as both the Ugandan government and its private-sector partner, Alpha MBM Investments, prioritize self-reliance in advancing the refinery project.
Ugandan Minister of Energy and Mineral Development, Ruth Nankabirwa Ssentamu, highlighted the rationale behind the move, stating, “Those who have money no longer want to finance oil projects. We have to do it ourselves.”
She confirmed that Alpha MBM Group will spearhead funding efforts over the next three years to bring the project to fruition.
The refinery is expected to bolster Uganda‘s energy infrastructure, ensuring greater value addition to its hydrocarbon resources and supporting the country’s long-term energy and economic goals.
