Uganda: Museveni Gives Two-Month Deadline for Steel Factory Plans in Ankole-Kigezi

2 March 2025
Nile Post (Kampala)
By Lukia Nantaba

Since last year, the government has banned the export of raw iron ore, pushing for local processing to boost industrial growth.

President Museveni has given a two-month deadline to a committee led by Education Minister Janet Museveni to finalise plans for a steel factory in the Ankole-Kigezi sub-regions.

The multi-billion project aims to tap into the region's vast iron ore deposits, particularly in Bukimbiri County, Kisoro, and Rubanda districts.

Since last year, the government has banned the export of raw iron ore, pushing for local processing to boost industrial growth.

Museveni instructed the committee to work with investors in selecting a suitable location for the factory.

He emphasised that the project is a zonal initiative designed to maximise the region's resources for economic development.

"Let Dr Baryomunsi work with Minister Mwebesa, Minister Bahati, and Mama because of Ntungamo, plus others who may be needed. Follow up with the investor so that you complete the groundwork findings. So two months I agree, this is really a zonal method," Museveni directed.

Chris Baryomunsi is the ICT minister and government spokesperson, Henry Mwebesa the trade minister and David Bahati is one Mwebesa's deputies.

Museveni expects the committee to submit a report by the end of May.

"End of May, I will need a report from the committee that I have appointed," he said.

ICT Minister Dr Baryomunsi welcomed the move, noting that value addition to iron ore would bring significant economic benefits.

State Minister for Trade David Bahati highlighted Ntungamo as a potential location and praised the project for its role in import substitution and export promotion.

The steel factory plan aligns with the government's broader push for industrialization. In 2021, Uganda suspended the mining and export of raw iron ore.

Since then, most of the mined ore has been sold to Tororo National Cement Company, which exports it to Kenya's Devki Group. Currently, about 90% of Uganda's iron ore is transported to Kenya.

The committee also includes Minister of Trade Francis Mwebesa and State Minister for Trade David Bahati, in addition to Janet Museveni and Dr. Baryomunsi.

Read the original article on Nile Post.

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