Uganda is expected to save approximately US$250 million annually in petroleum import expenditure following the commissioning of Bukona Fuel Blending Ltd in Malaba, Tororo district, in a move aimed at strengthening local production, promoting industrialisation and reducing dependence on imported fuel.
The facility was commissioned on November 6th, 2026, by the Minister of Trade, Industry and Cooperatives, Sanjay Tanna, who said domestic fuel blending would help retain foreign exchange within the country while creating new markets for locally produced agricultural commodities, particularly cassava and maize.
Tanna noted that the initiative presents an opportunity to link agriculture to industrial production, enabling farmers to supply raw materials for ethanol production while supporting Uganda’s import substitution agenda.
He particularly highlighted the potential benefits for farmers in the Lango and Acholi sub-regions, where increased production of cassava and maize could provide raw materials for the growing biofuel industry.
“Whatever is coming from here is scientifically proven, robust and improved. This is the way forward,” Tanna said, calling for greater investment in locally developed industrial solutions.
Bukona Fuel Blending Ltd has an installed production capacity of approximately 100,000 litres per day and has so far blended more than 460 million litres of fuel.
The plant operates within Uganda’s petroleum market, which consumes an estimated 2.5 billion litres annually, positioning it as a contributor to efforts to expand domestic industrial capacity and diversify the country’s energy supply.
Tanna urged the company’s management to prioritise product quality, operational efficiency and technological innovation to ensure the plant remains competitive and sustainable.
He also acknowledged the role of the Uganda Development Corporation (UDC), which invested equity in the enterprise to support its revival and continued operations.
According to the minister, UDC’s involvement demonstrates the importance of strategic public investment in restoring businesses, attracting private capital and strengthening industries with the potential to contribute to national economic growth.
Tanna pledged continued government support for investments in local manufacturing, agricultural processing and other strategic sectors.
The commissioning also highlighted the potential of ethanol as an alternative energy source, particularly in the household cooking sector.
Tanna welcomed the introduction of ethanol-powered cooking stoves, saying wider adoption of cleaner cooking technologies could reduce household dependence on charcoal and firewood, helping to protect forests and minimise environmental degradation.
He cited countries such as India, which has adopted a 20 per cent ethanol blending programme, as examples Uganda could learn from in its efforts to diversify energy sources and promote cleaner fuel alternatives.
The investment comes as Uganda intensifies efforts to expand its industrial base, increase value addition to locally produced agricultural commodities and reduce exposure to imported products.
The Bukona facility is expected to strengthen the link between agriculture and manufacturing while creating opportunities for farmers, investors and businesses across the production value chain.
