Vitol Bahrain EC has a long-standing presence in Uganda's downstream sector.

As the Uganda National Oil Company aims to build a crude refinery, it has reached out to a unit of global commodities trader, Vitol, for a US$2bn loan to support the project alongside construction and infrastructure developments

According to Henry Musasizi, Uganda's junior finance minister, this seven-year tenor loan from Vitol Bahrain EC (VBA) comes with an interest rate of 4.92%. The minister worked on advancing the approval process for the credit line and the loan, which involved significant lawmakers, who sanctioned the development with a majority verdict.

Musasizi said that Vitol's support "presents an opportunity to access non-traditional financing to implement. ..projects and support the government in developing national infrastructure."  

Vitol Bahrain EC has a long-standing presence in Uganda's downstream sector, functioning as the sole supplier of refined petroleum products to UNOC, before the state-owned company sells it to retailers across the country.

Alongside the refinery, the loan amount will also be covering road construction, a petroleum products storage terminal and extension of a petroleum pipeline from western Kenya to Uganda's capital Kampala.

Previously, the UNOC also concluded a deal with the UAE-based Alpha MBM Investments, whereby a domestic refinery with a capacity of 60,000 barrels per day is in the pipeline. The agreement accords 60% stake on the refinery to the UAE firm while UNOC retains 40%.

Uganda is looking to begin commercial oil generation starting next year from fields in its west.

The refinery will gear Zambia's downstream growth. (Image source: IDC)

China Zambia Petrochemical Corporation will push ahead with its US$1.1bn crude oil refinery project in Ndola as it has received the Investment License from the Zambia Development Agency

A Special Purpose Vehicle jointly established by the Industrial Development Corporation and Fujian Xiang Xin Corporation, China Zambia Petrochemical Corporation will advance the refinery project as a significant driver of employment generation and economic stability in the region, making a positive difference for the rapidly evolving Ndola Industrial Zone. During the construction phase alone, the refinery will create more than 2,200 jobs. Once operational, it will sustain more than 600 direct and over 2,000 indirect jobs, with comprehensive skills-transfer and certified training programmes designed to build a highly capable local workforce with expertise in advanced petrochemical operations. This will solidify Zambia's energy security and stabilise fuel supply as the country will not have to rely as hevily on the import of refined petroleum products.

Set to begin operations starting next year, the refinery is expected to process 3 mn tonnes of crude oil annually. This staggering quantity will not only surpass Zambia's national fuel demand but also easily cover regional export markets. 

An integrated energy complex, the refinery will gear Zambia's downstream growth, ranging from LPG bottling and bitumen production to lubricants blending. Additional spill over investments are anticipated in storage infrastructure, rail upgrades, and feedstock supply for manufacturing plastics, fertilisers, synthetic materials, and asphalt. Small and medium enterprises (SMEs) are expected to benefit significantly through opportunities in logistics, maintenance, catering, and specialised support services.

"Today's handover of the Investment License marks a decisive shift from commitment to execution. This project is a cornerstone of our industrialisation strategy and a timely response to the country's need for affordable, reliable, and locally produced energy. Through CZPC, we are driving a transformative venture that will create jobs, enhance national self-sufficiency, and support long-term economic growth," said IDC CEO Mr Cornwell Muleya.

"FJXX is honoured to advance this project into its implementation phase in partnership with the Government of Zambia through IDC. With more than two decades of Industrial experience, we are committed to deploying advanced engineering technologies that will deliver a world-class refinery for the benefit of the Zambian people and the broader region," said Mr Huang Tieming, Chairperson of Fujian Xiang Xin Corporation (FJXX).

The delegates explored ways to advance oil refining.

With an aim to boost mutual partnership between the petroleum sector and international financial institutions, Karim Badawi, Minister of Petroleum and Mineral Resources, held a meeting with a delegation from the Africa Finance Corporation (AFC), including Sameh Shenouda, CEO and chief investment officer at the corporation, and Ato Giazi, senior director of product solutions

Salah Abdel Karim, CEO of the Egyptian General Petroleum Corporation (EGPC) was also present during the discourse.

The delegates explored financing opportunities for projects to advance local production, particularly in the field of oil refining, with the goal of reducing imports and bridging the gap between production and consumption of petroleum products, especially diesel.

The Minister reviewed the Ministry's strategic plan, which sets investment priorities in the areas of research, production, refining, petrochemicals, mining, and green energy. While past investments and production were reassessed, the teams evaluated plans to conduct an aerial survey of mineral deposits for the first time in 40 years, besides considering incentive packages to attract emerging mining companies.

Shenouda affirmed the Corporation’s aspiration to enhance cooperation with Egypt in the petroleum and mining sectors.

The meeting also reviewed new projects to increase local production in the refining sector, including the Suez cooking and diesel production complex project that is currently being implemented. 

Major refinery projects are underway in Africa. (Image source: Adobe Stock)

Major refining projects  are set to transform Africa’s energy landscape and boost self-suffciency

Africa is set to add 1.2mn barrels per day (bpd) of new refining capacity by 2030, representing one of the fastest downstream expansions globally, according to the newly released 2025 OPEC World Oil Outlook.

At the forefront of Africa’s refining expansion is Nigeria’s 650,000-bpd Dangote Refinery, which began operations in 2024 and is already reshaping regional fuel trade dynamics. Further developments include the 200,000-bpd Akwa Ibom Refinery, also in Nigeria, and Angola’s state-driven push to bring online the 200,000-bpd Lobito Refinery and 100,000-bpd Soyo Refinery by 2030.

Uganda’s refining ambitions are taking shape with a 60,000-bpd facility in Hoima, part of the country’s broader Lake Albert basin development plan, while modular refinery projects in Ghana, Guinea-Conakry, the Republic of Congo and additional sites in Nigeria are buiding capacity in markets where infrastructure and financing hurdles persist. In North Africa, Algeria (Hassi Messaoud), Libya (Ubari) and Egypt (Soukhna) are all advancing refinery projects aimed at capturing higher margins, improving domestic supply security and reducing dependency on imports of refined petroleum products.

According to OPEC, Africa will need over US$40bn in refining investments by 2030 to meet its mid-decade objectives, and beyond that, an additional US$60+ billion for refinery construction, modernisation and secondary processing capacity upgrades. This opens a US$100 billion investment opportunity for project developers, institutional investors, sovereign wealth funds and energy-focused private equity.

Africa’s rising domestic consumption of crude – forecast to reach 4.5 million bpd by 2050 from just 1.8 million bpd in 2024 – further underlines the need for investing in downstream infrastructure.
If the continent seizes this momentum, it can move beyond being a raw crude exporter to becoming a competitive, resilient and integrated energy producer.

The 2025 edition of African Energy Week (AEW): Invest in African Energies in Cape Town will provide a platform for governments, operators and financiers to align on next-phase refinery projects, policy incentives and deal pipelines, as countries seek to reduce costly imports and capture more value from domestic crude,