Uganda's President Museveni Supports Proposed Oil Refinery in Tanzania

of Uganda stated that the country could use its crude oil as a contribution to establishing a crude oil refinery in Tanga, Tanzania. He made the remarks at the Africa Infrastructure Summit in Nairobi, Kenya, hosted by the Africa Finance Corporation.

The summit focused on infrastructure as a driver of industrialization and attracted financiers, investors, and industry leaders. Museveni mentioned receiving a message from President William Ruto about the refinery possibility, noting that oil from Kenya, South Sudan, and DRC could serve as feedstock.

He added that part of the oil transported via the East Africa Crude Oil Pipeline could be refined in Tanga rather than exported to distant refineries. Museveni also referenced negotiations with Total, where the company sought to export all the oil.

Dangote, chairman and CEO

of Dangote Group, pledged to support the construction of the refinery in Tanzania. He stated that if backed by the presidents involved, his group would build a facility identical to the 650,000-barrel-per-day refinery in Nigeria. Dangote committed to completing the project within four to five years and attributed the lack of prior refineries in Africa to challenges with global financial institutions.

“I can give commitment to the two presidents. If they will support the refinery, we'll build the identical one that we have in Nigeria - 650,000 barrels here.”

President Ruto highlighted Africa's oil production of about 10 million barrels per day, representing 10% of global output, while the continent imports 120 million metric tonnes of petroleum products annually at a cost of $90 billion. He noted that refining crude domestically could generate over $500 billion in revenue, compared to $270 billion from exports at $75 per barrel.

Ruto estimated that Africa loses about $230 billion in potential income, equivalent to 7.5% of its GDP, from not refining oil locally, excluding gains from downstream industries like plastics and fertilizers.

affirmed that Uganda will proceed with its plan to build a 60,000-barrel-per-day refinery in Kabaale, Buseruka Sub-County, Hoima District, for domestic use and supply to neighboring countries. The project involves a partnership between the Uganda National Oil Company and Alpha MBM Investments, an investment firm from the United Arab Emirates.

Alpha MBM Investments is led by His Highness Sheikh Mohammed bin Maktoum bin Juma Al Maktoum. The summit occurred amid global economic disruptions from conflicts, including the war in Ukraine and recent events in the Gulf. Participants discussed unlocking domestic capital for bankable projects and advancing regional integration.