President Yoweri Museveni launches the factory
HABARI DAILY I Kampala, Uganda I President Yoweri Museveni has hailed Abyssinia Steel Factory in Jinja as one of the major facilitators of Uganda’s journey toward industrialization.
“We will fully support local mining and manufacturing investors, who have heeded to our call to do value addition to our minerals as a means to ensure industrial growth. Just like Abyssinia, they should mine and process resources locally,” he said.
He made the remarks while commissioning the Abyssinia Steel Factory during the 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, further hailing Abyssinia for its remarkable contribution to Uganda’s steel industry, describing it as a model of industrial transformation.
Abyssinia Iron and Steel (Uganda) Ltd, which is 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.
The mineral refinery at the factory
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.
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 engages the investors
Dr Ruth Nankabirwa, the Minister of Energy and Mineral Development 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.
“Your vision positioned Uganda to host the continent’s first Africa Mineral Strategic Group meeting,” she said, adding that there is a growing global focus on critical minerals, which are now central to discussions around sustainable development.
She called warned companies holding mineral exploration licenses without meaningful activity that they should take action or risk having them 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.
The tour of the factory
Jateen Patel, the CEO of Abyssinia Group of Industries, 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, 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.
Officials of the Abyssinia Group of Companies attending the launch ceremony at Jinja
“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 our integrated steel plant commenced,” he said.
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 in the country. He said Abyssinia Group employs 250 Ugandans directly at the Jinja plant and provides indirect employment to over 1,200 people in the region.
