Final talks are under way that will lead to major investment from Dubai into East Africa’s first oil refinery, promising transformative economic change across Uganda.
A 1,400km heated oil pipeline – the world’s biggest – is part of a $10 billion (Dh36 billion) international project with the potential to take millions of Ugandans out of poverty, by delivering cheaper fuel and an economic boost to double national gross domestic product.
Dubai-based Alpha MBM Investments has been chosen as the preferred bidder to finance the $4 billion (Dh14 billion) refinery in the oil city of Hoima, with a capacity to produce 60,000 barrels daily.
The pipeline project, a collaboration with TotalEnergies EP Uganda, the China National Offshore Oil Corporation Uganda Limited and the Uganda National Oil Company, will cut reliance on neighbouring countries for the shipping of fuel supplies, transforming the landlocked country’s energy security profile by reducing the need for imports.
This is the beginning of a long-term economic uplift, promising benefits for the next 25 years
Ruth Nankabirwa,
Uganda’s Minister of Energy and Mineral Development
On Tuesday, a breakthrough in investment negotiations was announced by Ruth Nankabirwa, Uganda’s Minister of Energy and Mineral Development.
Alpha MBM Investments have been contacted for comment.
Ms Nankabirwa said the new Kabalega Airport, a logistics centre for the oil and gas project, was now 95 per cent complete while one of two production sites, Kingfisher, was also well ahead of schedule.
Alpha MBM Investments has been involved in talks with the Ugandan government since September, and was the preferred choice of four bidders to take on the project.
“Negotiation of the key commercial agreements between the government and Alpha MBM Investments LLC commenced on January 16 and is currently under way,” said Ms Nankabirwa.
“Since the landmark discovery of oil in 2006, Uganda has upheld the highest environmental, industrial, legislative, and regulatory standards.
“The sector significantly contributes to the country’s GDP, amounting to $8.6 billion, and has created over 12,000 jobs.
“This is the beginning of a long-term economic uplift, promising benefits for the next 25 years.”
Preferred investors
Kampala was forced to seek new funding to build the oil refinery in June, after a Project Framework Agreement with Italian and US companies expired.
Ugandan President Yoweri Museveni then directed the project towards new finance from the public sector.
Other interested parties included Africa Economic Aid Limited, Baker Tilly Middle East Limited, and St Ignatius Energy of South Africa.
Commercially viable hydrocarbon deposits were first discovered in the Albertine region of Uganda in 2006, with an estimated reserve of around 6.5 million barrels.
Production is due to begin from two sites at Tilenga and Kingfisher by 2025, with oil flowing from the banks of Lake Albert via Tanzania through an underground pipe system towards the Indian Ocean port of Tanga, also in Tanzania.
On completion, the Tilenga site is expected to produce 190,000 barrels of oil a day at peak capacity, with a further 40,000 extracted from Kingfisher.
As well as driving down the cost of petrol, diesel and other fuels, the refinery will become a vital cog in Uganda’s Energy Transition Plan.
Despite the financial benefits, the project has received widespread criticism for displacing communities and disrupting wildlife patterns.
However, the liquefied petroleum gas produced by a refinery is a key component of Uganda’s clean cooking initiative, diverting much of the population away from burning biomass, which is responsible for poor air quality and household respiratory problems.
Uganda is already a continental leader in sourcing electricity from renewables through its numerous hydro, solar and geothermal production plants, but the burning of charcoal and timber for domestic cooking has a high environmental impact.
The damage is dramatically reduced if LPG cookers are used, with the potential to save up to 50,000 lives lost through smoke-related respiratory illnesses, officials said.
Economic transformation
Africa’s energy transition towards cleaner, cheaper power was a major topic of discussion during the Cop28 climate talks in Dubai, as the world looked to begin the process of phasing out fossil fuels.
Collins Nzovu, chairman of the African Group of Negotiators on Climate Change, called for recognition of Africa’s right to exploit its natural resources sustainably, in line with the continent’s poverty eradication needs.
Africa’s current greenhouse gas emissions are only about 4 per cent of the world’s total.
Speaking at a press conference on Tuesday, Ms Nankabirwa said the project had huge potential to transform Uganda's fortunes.
“The Cop28 discussions emphasised a 'last in, last out' approach to reducing hydrocarbon production,” she said.
“Having benefitted for decades, established oil-producing nations are better positioned to reduce their output first.
“As a late entrant, Uganda and other developing nations are entitled to develop their resources and attain the same advantages enjoyed by longer-established oil producers.”
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THE BIO
Born: Mukalla, Yemen, 1979
Education: UAE University, Al Ain
Family: Married with two daughters: Asayel, 7, and Sara, 6
Favourite piece of music: Horse Dance by Naseer Shamma
Favourite book: Science and geology
Favourite place to travel to: Washington DC
Best advice you’ve ever been given: If you have a dream, you have to believe it, then you will see it.
The specs
Price, base / as tested Dh135,000
Engine 1.6L turbo
Gearbox Six speed automatic with manual and sports mode
Power 165hp @ 6,000rpm
Torque 240Nm @ 1,400rpm 0-100kph: 9.2 seconds
Top speed 420 kph (governed)
Fuel economy, combined 35.2L / 100km (est)
Mohammed bin Zayed Majlis
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Price, base / as tested Dh1,470,000 (est)
Engine 6.9-litre twin-turbo W12
Gearbox eight-speed automatic
Power 626bhp @ 6,000rpm
Torque: 900Nm @ 1,350rpm
Fuel economy, combined 14.0L / 100km
Analysis
Maros Sefcovic is juggling multiple international trade agreement files, but his message was clear when he spoke to The National on Wednesday.
The EU-UAE bilateral trade deal will be finalised soon, he said. It is in everyone’s interests to do so. Both sides want to move quickly and are in alignment. He said the UAE is a very important partner for the EU. It’s full speed ahead - and with some lofty ambitions - on the road to a free trade agreement.
We also talked about US-EU tariffs. He answered that both sides need to talk more and more often, but he is prepared to defend Europe's position and said diplomacy should be a guiding principle through the current moment.
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FANS WILL LOVE
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It’s amazing how active Russians are on social media and your accounts will surge should you post while in the country. Throw in a few Cyrillic hashtags and watch your account numbers rocket.
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With cold soups, bland dumplings and dried fish, Russian cuisine is not to everybody’s tastebuds. Fortunately, there are plenty Georgian restaurants to choose from, which are both excellent and economical.
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• A nationalist, his campaign slogan was Poland First. "Let's help others, but let's take care of our own citizens first," he said on social media in April.
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COMPANY%20PROFILE
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UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
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Young women have more “financial grit”, but fall behind on investing
In an October survey of young adults aged 16 to 25, Charles Schwab found young women are more driven to reach financial independence than young men (67 per cent versus. 58 per cent). They are more likely to take on extra work to make ends meet and see more value than men in creating a plan to achieve their financial goals. Yet, despite all these good ‘first’ measures, they are investing and saving less than young men – falling early into the financial gender gap.
While the women surveyed report spending 36 per cent less than men, they have far less savings than men ($1,267 versus $2,000) – a nearly 60 per cent difference.
In addition, twice as many young men as women say they would invest spare cash, and almost twice as many young men as women report having investment accounts (though most young adults do not invest at all).
“Despite their good intentions, young women start to fall behind their male counterparts in savings and investing early on in life,” said Carrie Schwab-Pomerantz, senior vice president, Charles Schwab. “They start off showing a strong financial planning mindset, but there is still room for further education when it comes to managing their day-to-day finances.”
Ms Schwab-Pomerantz says parents should be conveying the same messages to boys and girls about money, but should tailor those conversations based on the individual and gender.
"Our study shows that while boys are spending more than girls, they also are saving more. Have open and honest conversations with your daughters about the wage and savings gap," she said. "Teach kids about the importance of investing – especially girls, who as we see in this study, aren’t investing as much. Part of being financially prepared is learning to make the most of your money, and that means investing early and consistently."
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Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
