Uganda’s industrialization journey has received a significant boost with the launch of a state-of-the-art $100m UniSteel factory in Mbale Industrial Park, Mbale City.
This development is expected to create over 3,000 jobs and produce 700,000 tons of steel annually, making it a game-changer for the country’s economy.
The factory’s chairman, Xu Shicun, praised Uganda’s favorable business environment, citing good government policies and a ready regional market as key drivers for establishing the plant.
He said UniSteel aims to become East Africa’s leading steel company, prioritizing quality, safety, innovation, and green development.
The factory has an estimated production capacity of 700,000 metric tons of high-quality steel products.
Producing steel bars, wire rods, hot rolled steel coils, prepainted steel coils, and galvanized steel coils.
Deputy Speaker Thomas Tayebwa assured investors of government support. He said government has committed to invest Shs 400 billion ($100m) to transform Mbale Industrial Park into a one-stop business center.
Paul Zhang, Chairman of Mbale Industrial Park and Tian Tiang Group, appreciated the collaboration between the government and investors, urging the government to address power supply shortages and infrastructure development.
“The first phase of Unisteel with an annual capacity of 700,000 tonnes steel requires a power demand of 70MVA. However, there is currently only one 50MW mobile substation in the park. The government had promised to build a 240MW substation, but construction has yet to begin. I implore the government to honour its commitment to complete the 240MW substation as soon as possible to ensure sufficient power,” Zhang said.
He also asked government to accelerate construction of infrastructure such as roads, water supply and drainage in the park.
Mbale Industrial Park, spanning 607 acres in eastern Uganda, has attracted over $200m in investments since its inception. The park is now home to 26 operational industries, with nine under construction and five at the pre-start stage.
The development is seen as a significant step towards achieving Uganda’s industrialization goals and promoting economic growth.