Kampala, Uganda – President Yoweri Museveni has intensified efforts to establish a steel factory in the Ankole-Kigezi sub-region, setting a two-month deadline for a committee led by Education Minister Janet Museveni to finalize plans.
The project, which aims to harness Uganda’s vast iron ore deposits for local processing, is seen as a game-changer for industrialization and economic transformation.
For years, Uganda has exported raw iron ore, primarily to Kenya’s Devki Group through Tororo National Cement Company. This has resulted in the country missing out on significant value addition opportunities.
However, in 2021, the government banned the export of raw iron ore to shift focus toward local processing. Now, Museveni wants to accelerate this agenda by ensuring that the Ankole-Kigezi region hosts a fully-fledged steel factory.
The proposed multi-billion project will tap into the region’s rich iron ore reserves, particularly in Bukimbiri County (Kisoro) and Rubanda District.
According to Museveni, the factory will be a zonal initiative designed to boost the region’s economic development by processing iron ore locally instead of exporting it as raw material.
“Let Dr. Baryomunsi work with Minister Mwebesa, Minister Bahati, and Mama (Janet Museveni) because of Ntungamo, plus others who may be needed. Follow up with the investor so that you complete the groundwork findings,” Museveni directed.
The committee, chaired by the First Lady and Minister of Education, Janet Museveni, includes ICT Minister Dr. Chris Baryomunsi, Trade Minister Francis Mwebesa, and State Minister for Trade David Bahati. Their mandate is to identify a suitable investor and location for the steel plant while ensuring that all preliminary work is completed within two months.
Museveni has made it clear that he expects a comprehensive report from the committee by the end of May.
“End of May, I will need a report from the committee that I have appointed,” Museveni asserted.
The establishment of a steel factory is expected to bring multiple economic benefits, including job creation, infrastructure development, and increased revenue from processed steel exports.
ICT Minister Dr. Baryomunsi welcomed the move, stating that value addition to Uganda’s iron ore would significantly boost the industrial sector.
State Minister for Trade David Bahati suggested Ntungamo as a potential location for the factory, citing its strategic position and accessibility. He emphasized that the project would not only support Uganda’s import substitution strategy but also increase export earnings.
Currently, Uganda imports large quantities of steel, despite having abundant iron ore deposits. The new steel factory is expected to change this trend by enabling local production of high-quality steel products. This aligns with the government’s broader vision of self-sufficiency in industrial production.
By prioritizing this project, Museveni seeks to ensure that Uganda moves from being a raw material exporter to an industrialized nation capable of processing and exporting finished products. If implemented successfully, the steel factory could mark a major milestone in Uganda’s economic journey.
The ball is in the committee’s court to deliver a concrete plan that will finally transform Uganda’s iron ore sector with the two-month deadline now in place.
The success of this initiative could set the stage for more industrial projects across the country, solidifying Uganda’s position as a regional manufacturing hub.
Original Story…. Nile Post……………..
