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UG Standard - Latest News

Museveni, Dangote discuss $15 billion regional oil refinery

by WINNIE NAKAMATTE | REPORTER
18/05/2026
in Business, News
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Ugandan President Yoweri Museveni, right, speaks with Nigerian industrialist Aliko Dangote during a meeting at State Lodge Nakasero in Kampala, Uganda, Sunday, May 17, 2026. Museveni expressed Uganda's support for a proposed $15 billion regional oil refinery project aimed at strengthening East Africa's energy security and industrial cooperation.
Ugandan President Yoweri Museveni, right, speaks with Nigerian industrialist Aliko Dangote during a meeting at State Lodge Nakasero in Kampala, Uganda, Sunday, May 17, 2026. Museveni expressed Uganda’s support for a proposed $15 billion regional oil refinery project aimed at strengthening East Africa’s energy security and industrial cooperation.

KAMPALA, Uganda — Ugandan President Yoweri Kaguta Museveni expressed support Monday for a proposed regional oil refinery project following talks with Nigerian industrialist Aliko Dangote on strengthening East Africa’s energy and industrial cooperation.

During a meeting at State Lodge Nakasero, Museveni said Uganda is ready to support the establishment of a large regional refinery in East Africa as part of broader efforts to promote economic integration and value addition on the continent.

“We shall support Mr. Dangote, and we are ready to buy shares in the regional refinery because our goal is regional integration and industrial development,” Museveni said.

The president emphasized that Africa must move away from exporting raw materials and instead focus on processing its resources locally to create jobs, build industries and strengthen economies.

“We have always been against the export of unprocessed raw materials. That is why Uganda insisted on having a refinery as part of our oil development strategy,” he said.

Museveni explained that Uganda’s oil journey has taken longer because the government insisted on ensuring the country benefits from value addition before exporting crude oil. He said Uganda’s planned refinery in Hoima will continue alongside broader regional discussions aimed at establishing a larger East African refinery capable of serving multiple countries.

“We have no problem supporting a broader regional refinery that can guarantee energy security for the region while Uganda also develops its own refinery,” he said.

Regional cooperation will help East African countries benefit more from shared infrastructure and industrial projects, Museveni said, adding, “If East Africa works together, these projects become more viable and beneficial to all our people.”

The discussions followed recent engagements between Dangote and East African leaders during the Africa We Build Summit 2026 in Nairobi, Kenya, where proposals for a major regional refinery were discussed.

The proposed $15 billion to $17 billion oil refinery has a planned capacity of 650,000 barrels of crude oil per day. It is expected to serve Uganda, Kenya, Tanzania, Ethiopia, South Sudan, the Democratic Republic of the Congo and other regional markets.

Dangote said his team is assessing possible locations for the refinery, including Tanga, Mombasa and Lamu, as consultations with regional governments continue.

“This is a continuation of discussions we held with regional leaders in Nairobi. We want to establish a refinery that can support East Africa’s growing energy needs,” Dangote said.

He noted the project would process crude oil from different sources across the region and help reduce dependence on imported petroleum products. Dangote also assured Museveni that the refinery would create employment opportunities for East Africans.

“Jobs will not be a problem. In our refinery in Nigeria, we employ people from many nationalities, and East Africans will also benefit from this project,” he said.

He invited officials from Uganda’s energy sector to visit the Dangote refinery in Nigeria for further technical engagement. Dangote also congratulated Museveni on his recent inauguration, wishing him health and success during his new term.

“I congratulate Your Excellency upon your inauguration and pray that the Almighty God keeps you safe, healthy and strong as you continue leading Uganda,” Dangote said.

Meanwhile, Irene Bateebe, permanent secretary at the Ministry of Energy and Mineral Development, said Uganda’s refinery plans remain commercially viable due to the country’s quality crude oil and growing regional market. She said Uganda will continue engaging stakeholders and partners on both the national refinery project and wider regional energy cooperation initiatives.

The proposed regional refinery is expected to strengthen East Africa’s energy security, support industrialization and complement ongoing infrastructure projects such as the East African Crude Oil Pipeline linking Hoima in Uganda to Tanga in Tanzania.

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