How Awasthi built Tembo Steels firm

KAMPALA - Using local materials and empowering Ugandans, Sanjay Awasthi has built Tembo Steels into a steel giant in Uganda. Umar Nsubuga interviewed him on his story.

When Sanjay Awasthi arrived in Uganda in 2000, he saw the possibility of building an industry that could contribute to the country’s economic transformation.

At a time when Uganda’s steel sector was still developing and much of the demand for construction materials was being met through imports, Awasthi believed the country had the potential to produce its own steel, add value to its resources and create opportunities for its people.

Over two decades later, that vision has grown into Tembo Steels, Uganda’s largest and most diversified integrated steel company, covering all four major verticals of commercial steel and producing a wide range of products that support construction, manufacturing and infrastructure development.

For Awasthi, the journey has never been only about producing steel, but about producing 100% made-in-Uganda steel and achieving 100% value addition within Uganda.

“We are not just building steel; we are building Uganda,” he says.

The statement captures the philosophy that has guided his investment journey: using industrial development to create highly skilled jobs, develop advanced technical capabilities and strengthen Uganda’s primary manufacturing capacity.

Awasthi’s decision to invest in Uganda followed extensive research. He first studied several African markets, including Nigeria, Kenya, Tanzania and Ethiopia, to understand their industrial potential.

Although the countries offered different opportunities, Uganda stood out to him.

“When I came to Uganda, I saw a country with great potential, but no primary/own steel production, relying heavily on imports. The demand was there, the people had immense potential, and I believed Uganda could build its own industrial future in iron and steel,” Awasthi says.

He established Tembo Steels in Lugazi, a location that offered access to markets, transport networks and industrial opportunities.

Awasthi says his dream was simple: to make steel in Uganda from Uganda’s own resources, for Uganda and Africa. A large part of that dream has been achieved, but the journey is far from complete.

Awasthi says his ultimate vision is to see Uganda fully utilise its mineral resources, reduce dependence on imported steel and emerge as a major steel manufacturing hub for Africa.

In 2006, Tembo Steels introduced the first thermo-mechanically treated steel bars, which became an important product in Uganda’s construction sector.

The bars gained popularity because of their strength, durability and ability to withstand demanding construction conditions. The steel was then used in Bujagali dams and many other critical engineering projects.

In 2008, Awasthi pioneered the production of the world’s lightest HRC with exceptional tensile strength, anticipating the global shift towards lighter, stronger and more efficient steel.

This breakthrough innovation set a new benchmark in steel manufacturing, one that remains a defining achievement of Tembo Steels to this day.

In 2011-2012, building once again from liquid steel, Awasthi pioneered the production of the world’s lightest structural steel sections through direct rolling, a breakthrough achievement that earned global recognition and further established Tembo Steels as a pioneer in steel innovation.

The company expanded further in 2014 by producing 5.5 wire rods from liquid steel in the region. At the time, wire rod was heavily imported with no facility within the region.

Creating economic opportunities  

Tembo Steels directly employs approximately 3,000 people, while thousands more benefit indirectly through mining, transport, distribution, contracting, engineering, maintenance and other businesses linked to its operations.

The company has created opportunities for engineers, technicians, machine operators, quality control specialists, suppliers, transporters and contractors. The company says training and skills development remain central to its growth because steel manufacturing requires specialised technical expertise.

Many of these skills, it explains, are gained through practical experience and hands-on involvement in industrial projects.

Awasthi studied metallurgy and material science. “But I would say that a very large part of my education came from practical experience, working with machinery, understanding steel, solving technical problems and learning from both successes and failures,” he says.

Awasthi’s family has been an important part of this journey. He says building an industry requires enormous commitment and sacrifice, and having a family that understands and supports that long-term vision makes a lasting difference.

“Education gives you a foundation, but curiosity, discipline, and the willingness to keep learning throughout your life are equally important,” Awasthi suggests.

Success tips  

Awasthi says there is no secret formula for becoming rich, arguing that if money is your only objective, it becomes very difficult to build something that lasts.

“My philosophy has always been to create value first. You must be prepared to work harder than others, take calculated risks, continuously learn and, most importantly, remain patient. Building an industry takes years. There will be failures, difficult profit periods and moments when giving up appears easier than continuing,” he says.

Awasthi shares five principles with young entrepreneurs: work hard and smart, understand your business deeply, reinvest in growth, keep innovating and never sacrifice your reputation for short-term “Success is not what you earn in one year. Success is what you build that can survive for generations,” he advises.

Investment opportunities 

Asked to point out highly rewarding investment opportunities, Awasthi says: “Uganda has tremendous opportunities, but I believe the biggest opportunity is value addition. We have minerals, agricultural resources, a young population and a strategic location within East Africa. Instead of exporting raw materials and importing finished products, we should increasingly process what we have within Uganda.”

He argues that mining and mineral beneficiation, agro-processing, energy, engineering industries, manufacturing, logistics and industries that supply inputs to larger manufacturers all have significant potential.

“Iron ore is a perfect example. The real opportunity is not simply mining iron ore; it is converting that iron ore into sponge iron, liquid steel and ultimately finished steel products. At every stage, the value, employment and economic impact multiply. Uganda’s greatest untapped business opportunity is turning what we already have into what we currently import,” Awasthi says.