By Joan Ahumuza
Kampala: The Africa Finance Corporation has advanced USD20 ( about Shs74.5Bn) for the construction of Uganda’s crude oil refinery, paving way for the start of the USD4.27Bn project.
AFC signed the financing deal on the sidelines of the Africa Oil Week in South Africa mid this month.
Other financiers for the project include African Development Bank, Prosper Africa, a US government Initiative that unlocks opportunities to do business in Africa and another US-based firm, Trace and Development Agency are also expected to inject money into the multibillion dollar project.
“The meeting was very good for Uganda. We had several investors committing themselves to join the development of the refinery,” Uganda’s Energy Minister Irene Muloni said via phone call.
AFC managing director Ammadou Wadda, African Development Bank president Akiwumi Adesinia, representatives from US-based Prosper Africa Initiative and Trace Development Agency attended the side event too.
Minister Muloni led a team of government officials and officials from Albertine Graben Refinery Consortium (AGRC) to the invite-only sideline meeting.
The investors also agreed to hold a special meeting next year to discuss how to raise funds for the refinery and the refinery’s management is also expected to give potential investors details about the project and existing investment opportunities.
“AGRC and the financiers will work out the movement of funds, but as for government we shall raise our share of the investment through debt and equity,” said Muloni.
