Uganda Aims for $5 Billion Annual Revenue from Kabalega Industrial Park The Uganda National Oil Company (UNOC) announced that the Kabalega Industrial Park (KIP) located in Hoima is projected to generate approximately $4.9 billion yearly for the country’s Gross Development Product (GDP). Positioned on a vast area of 25.97 square meters, KIP stands as a critical endeavor among UNOC’s midstream projects.
UNOC detailed its expectations in a press release to The Prism Uganda, stating, “Our initial economic assessments for KIP suggest that, supported by the international airport and national road network, the park’s diverse industrial and commercial operations could contribute up to $4.9 billion annually to the national GDP.”
The development, operational management, and execution of KIP are spearheaded by UNOC alongside a strategic partner through the Uganda Refinery Holding Company, with UNOC holding a 51% stake. KIP is set to include a variety of facilities such as the under-construction Kabaale International Airport, the crude oil export hub which marks the start of the East African Crude Oil Pipeline (EACOP), a greenfield refinery, polymer and fertilizer industries, light/medium industries, agro-processors, and logistics and warehousing services. Additionally, plans for commercial, retail, healthcare, and residential spaces are included within the park’s layout.
UNOC highlighted the park’s potential to bolster Uganda’s National Capital Formation by an additional $11.9 billion annually, enhance the Balance of Payments by $849 million per year, create a fiscal impact of $1.2 billion annually, and generate 35,000 employment opportunities.
Construction progress for the Kabaale International Airport is nearing completion at 95%. Uganda’s ambition extends to constructing a 60,000 barrels-per-day crude oil refinery, poised to generate over 50,000 jobs and significantly reduce the country’s reliance on imported petroleum products for more than three decades.
The search for a joint venture partner to co-manage the park is ongoing, with UNOC noting progress in negotiations with COEGA Development Corporation SA. Efforts to finalize a land allocation policy to attract potential investors are also underway, pending Cabinet approval.
Upon full operation, the Tilenga and Kingfisher oil fields will supply crude to the refinery and the crude oil export hub, with the refinery’s output including gasoline, diesel, aviation fuel, LPG, and heavy fuel oil. These products will then be distributed via a multi-product pipeline and by road and rail, supporting further industrial activities within the park.
The park’s development also anticipates educational opportunities for 4,000 students and healthcare facilities capable of serving a significant number of patients. With the ongoing completion of infrastructure, including roads, a perimeter fence, water and waste treatment facilities, and a power distribution network, UNOC’s vision for KIP is a comprehensive plan aimed at national economic enhancement and sustainable development.
