President Yoweri Kaguta Museveni on Monday 25th January 2025, presided over the commissioning of a new Direct Reduced Iron (DRI) plant at Tembo Steels in Kasolo Village, Iganga District, a move officials say will bolster Uganda’s industrial sector and reduce reliance on imported steel.
The facility, the latest expansion by Tembo Steels, marks a significant milestone in Uganda’s effort to build a self-sufficient manufacturing base. Established in 2004, the company has grown into one of the country’s largest steel producers, manufacturing oxygen cylinders and nitrogen alongside its core steel products. By sourcing raw materials locally, it has positioned itself as a key driver of industrialization, creating employment for more than a million Ugandans.
Speaking at the event, Museveni praised the company’s leadership for its role in strengthening Uganda’s economy. He reiterated his longstanding call for self-reliance in industrial production, warning that continued dependence on imports was draining national resources.
“The haemorrhage of resources must stop,” he said, referencing Uganda’s iron ore deposits, particularly in Kabale, as an untapped asset that could power the country’s steel industry. “We are committed to ensuring manufacturers access affordable electricity at five cents per unit to boost productivity and competitiveness.”
Government officials framed the plant’s opening as a broader commitment to economic development, particularly in the Busoga sub-region, where the facility is located. Hon. Lukia Nakadama, Uganda’s Third Deputy Prime Minister, described the investment as a “beacon of hope” for the region, long plagued by economic stagnation.
Mr. Manish, General Manager of Tembo Steels, called the plant’s launch a defining moment for the company and Uganda’s industrial landscape. “This milestone reflects our unwavering commitment to growing the economy. With this plant, we expect a significant boost in industrial output,” he said.
The event drew a high-profile audience, including government ministers, members of parliament, religious leaders, and investors, all bearing witness to what the administration has touted as a step toward economic transformation.
For President Museveni, who has long championed industrialization as a path to economic independence, the plant’s commissioning signals another push toward reducing Uganda’s reliance on foreign steel. But questions remain over whether the government’s promise of cheap electricity—a longstanding grievance among manufacturers—will materialize.
As the machines roar to life and workers celebrate, the plant’s success will ultimately be measured not just by the steel it produces, but by whether it truly reshapes Uganda’s industrial trajectory.