Ugandan President Yoweri Museveni has revealed that Uganda still plans to construct its own oil refinery despite billionaire Aliko Dangote choosing Kenya as the location for his multitrillion-shilling East African refinery.
Speaking on Wednesday, September 30, during the groundbreaking ceremony for the Dangote East Africa Refinery in Lamu, Museveni said plans for a refinery in Uganda had previously been discussed with Dangote as well as Presidents William Ruto of Kenya and Samia Suluhu Hassan of Tanzania.
“I discussed with Mr Dangote and Presidents Ruto and Samia; we’re going to build a small refinery in Uganda. We had planned this long ago. We can’t change that,” Museveni stated.
The Ugandan president said the proposed facility had been in the works for some time and would serve Uganda and other landlocked countries in the region.
Museveni indicated that the refinery could be constructed in Hoima, with a proposed processing capacity of between 60,000 and 120,000 barrels.
He argued that Uganda needed its own refining capacity instead of relying on only a handful of facilities serving the wider region.
The president also revived questions surrounding an earlier proposal to establish a refinery at Tanzania’s Tanga port. “We had also discussed a refinery in Tanga. I don’t know what happened. This one, I support, but I will not invest yet. I want to discuss with Ruto and Samia what happened,” he noted.
Museveni's remarks came shortly after Dangote explained why Lamu was eventually selected for his refinery after Tanga had initially been considered.
Dangote said Tanga had been considered because of plans for a pipeline connecting Uganda’s oil fields to the Tanzanian port. He later settled on Lamu, citing the availability of water, deep-sea access and suitable land for the planned refinery.
While expressing support for the Lamu project, Museveni said Uganda would not immediately invest in it, preferring to first hold further discussions with Ruto and Samia.
Museveni further said Uganda’s decision to pursue domestic refining was linked to his position that the country should not export crude oil without first processing it into petroleum products.
The president was among several African leaders and business figures who attended the Lamu groundbreaking ceremony.
Others included Benin's President Romuald Wadagni, Togo's President Jean-Lucien Savi de Tové and Ethiopian Prime Minister Abiy Ahmed.
During the ceremony, President Ruto said the Lamu refinery would help Kenya reduce its annual petroleum import bill of Ksh530 billion. Construction of the facility is expected to take 40 months.
