KEY POINTS
- Uganda commits $4 billion for an oil refinery using equity financing, partnering with Alpha MBM Investments to ensure project completion within three years.
- Cabinet-approved equity structure aims to reduce reliance on traditional oil financing, boosting self-reliance in Uganda’s energy infrastructure development.
- Energy Minister Nankabirwa cites necessity for independence, as global oil project funding wanes, emphasizing Alpha MBM’s critical role in driving Uganda’s refinery goals.
Uganda has committed to funding its $4 billion oil refinery entirely through equity, leveraging a partnership with UAE-based Alpha MBM Investments, which has pledged financial support over the next three years.
The move signals a bold departure from traditional international project financing models, underscoring Uganda’s ambition to chart a more self-reliant path for its energy sector.
Uganda teams up with Alpha MBM investments
The equity-based financing structure, recently approved by Uganda’s Cabinet, is a strategic pivot designed to sidestep waning global interest in oil project financing.
By teaming up with Alpha MBM Investments, the Ugandan government aims to ensure the refinery’s development remains on track without external dependencies.
Empowering Uganda’s energy future
According to EnergyCapitalPower, Energy Minister Ruth Nankabirwa Ssentamu emphasized the necessity of this approach, noting, “Those who have money no longer want to finance oil projects. We have to do it ourselves.” She affirmed that Alpha MBM will lead funding efforts over the coming three years, anchoring the project’s progression.
The refinery is poised to enhance Uganda’s energy infrastructure significantly, creating value from its hydrocarbon resources while aligning with the nation’s long-term economic and energy objectives.
