President Yoweri Kaguta Museveni has today reaffirmed the government’s commitment to supporting local mining and manufacturing investors, emphasizing the importance of value addition and industrial growth.
“We are going to support manufacturers to ensure they can mine and process resources locally,”he said.
The President made the remarks during the commissioning of the Abyssinia Steel Factory in Jinja, a facility he praised as a key player in Uganda’s journey toward industrialization.
This event was part of President Museveni’s ongoing 4-day wealth creation and PDM performance assessment tour in Busoga sub-region which commenced on Wednesday this week.
President Museveni emphasized the strategic significance of harnessing Uganda’s abundant natural resources to create jobs and boost economic growth.
The President further commended Abyssinia Steel Factory for its remarkable contribution to Uganda’s steel industry, describing it as a model of industrial transformation.
“I want to congratulate you, Abyssinia Steel Factory for fulfilling your undertaking by building a complete factory. This is exactly the kind of industrial growth we want to see,” he said.
Abyssinia Iron & Steel (Uganda) Ltd, located in Jinja District, is a subsidiary of the Abyssinia Group of Industries, one of East Africa’s largest steel producers with an annual capacity exceeding 700,000 metric tons.
President Museveni 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 recalled a decision to temporarily allow the importation of sponge iron from Kenya to support Abyssinia Steel Factory’s initial development, applauding the company for staying true to its vision.
Criticizing the previous practice of exporting raw materials like iron ore, the President 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.”
He urged government agencies to expedite the development of industrial parks and streamline regulatory frameworks to create a more conducive environment for investors.
“We shall give you all the support you need to succeed and grow,” he reassured.
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.
President Museveni concluded by reiterating the government’s commitment to fostering industrial transformation, noting that value addition, job creation and technological advancement are key to achieving sustainable development.
On the other hand , Hon. Ruth Nankabirwa, Minister of Energy and Mineral Development lauded the President for his steadfast leadership and commitment to advancing mineral value addition in Uganda.
Hon. Nankabirwa revealed that during a recent event in Saudi Arabia, she had the opportunity to discuss Uganda’s progress in the minerals sector, particularly highlighting the President’s directive to ban the exportation of unprocessed minerals.
“You became the champion of Africa’s mineral value addition,” she noted, adding that the President’s vision positioned Uganda to host the continent’s first Africa Mineral Strategic Group meeting.
“You were appreciated globally, and we celebrate you because this is your achievement,”she said.
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.
Hon. Nankabirwa also called out companies holding mineral exploration licenses without meaningful activity, urging them to take action or risk having their licenses revoked.
“We have cancelled licenses for companies that are not serious. We want to give these licenses to companies that are committed to adding value to our resources,” she asserted.
She concluded by thanking President Museveni for ensuring the peace and stability that Uganda enjoys.
“Without peace and stability, we cannot sit here and plan,” she remarked, emphasizing the foundation these provide for the country’s economic progress.
The CEO of Abyssinia Group of Industries, Mr. 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.
Reflecting on his family’s journey, Mr. Patel recounted the humble beginnings of his grandfather, who arrived in Uganda in the 1950s as a small businessman.
“In 1971, my father dared to dream of building a future through steel. Against all odds, his determination and vision shaped what this company is today. His legacy is not just ours as a family, it’s a vision we have embraced to transform lives and economies,” he remarked.
Abyssinia Group began its journey in Uganda in 2010, initially focusing on mining in Kabale and exporting iron ore to Kenya.
“By 2022, inspired by the vision of Uganda’s leadership, 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.
”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, Mr. 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.
“Our journey is not just about steel manufacturing; it’s about contributing to Uganda’s socio-economic development,” Mr. Patel emphasized.
Mr. Patel highlighted the significance of the recently launched project ,Uganda’s Standard Gauge Railway (SGR) in facilitating the importation of raw materials and coal, which will enhance steel production and further support Uganda’s development agenda.
He also pointed to Abyssinia Group’s commitment to supporting local communities through initiatives like building housing and infrastructure.
The event was also attended by Rt. Hon. Lukia Isanga Nakadama: Third Deputy Prime Minister, Hon. Francis Mwebesa: Minister of Trade, Industry and Cooperatives, Hon. David Bahati: State Minister for Trade, Hon. Evelyn Anite: State Minister for Investment and Privatization, Hon. Fred Byamukama, the State Minister for Transport, Hon. Phiona Nyamutoro: State Minister for Mineral Development, among others.
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