TURN! Shs393bn Mukula Lake Fuel Project in Limbo After President Rejects Oil Transport on Victoria
President Yoweri Museveni has halted a $100 million petroleum logistics project on Lake Victoria, citing environmental risks despite his previous support for the initiative. The decision leaves the future of the facility, which aimed to shift fuel transport from roads to water, in significant doubt.
Why it matters
This reversal highlights the tension between infrastructure development and environmental protection in emerging economies, as well as the risks of political volatility for large-scale investments.
President Yoweri Museveni’s latest rejection of fuel transportation on Lake Victoria has thrown fresh uncertainty over a Shs393 billion ($100 million) petroleum logistics project associated with businessman Capt Mike Mukula, after the President previously backed and launched the lake-based fuel facility.
Museveni on Thursday said Uganda should not transport petroleum products across Lake Victoria, warning that a fuel vessel accident could contaminate the country’s freshwater resource.
Instead, the President said Uganda should rely on pipelines and railways to move petroleum products.
The remarks have raised questions over the future role of the Lake Victoria Logistics facility at Bugiri-Bukasa, Kawuku, which was launched by Museveni in July 2024 as part of efforts to shift fuel transportation from roads to water.
The facility, formerly associated with Mahathi Infra Uganda, represents an investment of about $100 million, equivalent to roughly Shs393 billion at current exchange rates.
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