AFC backs petroleum transport on Lake Victoria
Africa Finance Corporation (AFC) today announced its investment in Mahathi Infra Uganda Limited, one of East Africa’s largest oil and gas downstream players. AFC’s $95.25 million investment will finance the construction of two self-propelled barges for operation on Lake Victoria, providing a more efficient and less carbon intensive alternative to traditional trucking. The financing will also support enabling infrastructure including 14 petroleum storage tanks, 20 truck loading bays, a jetty, and a parking lot with a capacity of 50 trucks, thereby transforming petroleum product transportation in Uganda.
Uganda is a net importer of petroleum products, primarily through the Mombasa Port in Kenya. As such, the project will have a significant impact on the country’s economy with a single barge trip on Lake Victoria replacing 200 trucks on the road. Annually, AFC’s investment will eliminate approximately 100,000 truck journeys on East Africa’s busiest transport route – from Kisumu, Kenya, to Kampala, Uganda. This reduction in road traffic will ease congestion and minimise issues such as product adulteration, theft, and accidents. It will also alleviate working capital burdens for small and medium-sized distributors, enabling them to procure products directly from the Mahathi storage facility, reducing delivery time from seven days to immediate access.
Samaila Zubairu, president and CEO of AFC said, ”This is a significant milestone in our mission to sustainably address Africa’s infrastructure challenges. Through this investment we are contributing to the transformation of petroleum transportation in Uganda with a lower-emissions alternative that cuts costs significantly, reduces road congestion, and improves mobility and accessibility for people, leading to sustainable economic growth and productivity.”
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