President Yoweri Museveni has committed to support local mining and manufacturing investors, emphasizing the importance of value addition and industrial growth.
The President who was commissioning Abyssinia Steel Factory in Jinja on Friday, 24th January 2025, emphasized the strategic significance of harnessing Uganda’s abundant natural resources to create jobs and boost economic growth.
Museveni, who has been on a 4-day wealth creation and PDM performance assessment tour in Busoga sub-region, highlighted the exceptional quality of Uganda’s iron ore, positioning the country as a potential global leader in the steel industry if more emphasis is placed on value addition.
He said: “When you export raw materials, you are also exporting jobs and opportunities for our people. That’s why I stood firm and stopped the export of unprocessed iron ore.”
The President expressed satisfaction with the increasing number of investors in Uganda’s industrial sector, including those in steel and oil refinery industries, who are adding value to the country’s resources.
Ban on export of unprocessed minerals
Ruth Nankabirwa, Minister of Energy and Mineral Development, highlighted the recent President’s directive to ban the exportation of unprocessed minerals.
The minister emphasized the growing global focus on critical minerals, which are now central to discussions around sustainable development.
She pledged to build consensus on identifying and safeguarding Uganda’s critical minerals. “We shall be expanding further on what these critical minerals are in Uganda so that we can guard them jealously,” she stated.
Nankabirwa also called out companies holding mineral exploration licenses without meaningful activity, urging them to take action or risk having their licenses revoked.
Transformative chapter for steel industry
The CEO of Abyssinia Group of Industries, Jateen Patel described the launch of their new integrated steel plant in Uganda as the beginning of a transformative chapter for the country’s steel industry.
Abyssinia Group began its journey in Uganda in 2010, initially focusing on mining in Kabale and exporting iron ore to Kenya. By 2022, the company made a bold commitment to invest directly in Uganda.
“We acquired a dominant iron ore processing facility in Jinja, and in January 2024, construction of their integrated steel plant commenced,” he said, adding “Remarkably, by October 2024 , just ten months later , the plant was operational.”
He added that the facility has the capacity to produce 225,000 tonnes of billets annually, noting that the milestone was a testament to the conducive business environment and visionary leadership in Uganda.
Currently, Patel said that Abyssinia Group employs 250 Ugandans directly at the Jinja plant and provides indirect employment to over 1,200 people in the region.
