Uganda takes a decisive step in its ambition to develop its oil resources. The government has unveiled a new strategy to fully finance the construction of a refineries at Kabaalein the district of Hoimafrom own funds. This project, estimated at 4 billion dollarsembodies Kampala's desire to reduce its dependence on imported fuels and strengthen its energy independence.
Initially, the financing of this refinery was to be shared between capitals own funds (40%) and international debts (60%), in partnership with the Emirati company Alpha MBM Investments. However, difficulties encountered in the international market have led the authorities to review their approach. These financial obstacles are reminiscent of those of the controversial pipeline project EACOPaimed at linking Uganda to the Tanzanian coast, which has also struggled to attract international investors due to economic and environmental pressures.
This refinery is designed to process 60,000 barrels of crude per day, a key element in Uganda's energy strategy. In response to the financial challenges, the government has taken significant steps. Last June, he more than doubled the budget for the oil and gas sector for the 2024-2025 fiscal year, bringing it to $246 million.
This strategic turnaround reflects a clear ambition: to free itself from the constraints imposed by international players and maximize the profits derived from the exploitation of Ugandan oil. However, many questions remain unanswered, in particular on the precise modalities of mobilizing the funds necessary for a project of this scale.
If this bet is successful, Uganda could become an example of resilience and sovereignty in the management of its natural resources. This project is also part of a regional dynamic where several African countries are seeking to locally process their raw materials to increase their added value. For Kampala, this is an opportunity to accelerate its economic development while consolidating its role on the African energy scene.
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