Museveni backs Uganda’s pig iron plant

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President Yoweri Museveni has pledged government support to a new iron ore processing factory in Ntungamo District, describing the project as a major step in Uganda’s long-running push to stop exporting raw minerals and instead process them locally to create jobs and industrial growth.

The commitment was announced in a Presidential Press Unit statement issued through the Uganda Media Centre following a meeting on Tuesday, May 20, at State Lodge Nakasero between Museveni and officials from Terra Industrial Development Company, led by Managing Director Kong Dong Sheng.

At the centre of the discussions was a newly established iron ore processing plant in Rwenanura, Ntungamo District, which officials described as Uganda’s first pig iron processing factory capable of producing pig iron with a purity level of 93%.

Pig iron is a basic form of processed iron produced by heating iron ore at extremely high temperatures in industrial furnaces. It is an important raw material used to manufacture steel products, machinery, construction materials and industrial equipment.

This development is key because Uganda has for years exported large amounts of unprocessed minerals abroad, allowing other countries to undertake the higher-value industrial processing and manufacturing stages.

Government officials argue that processing minerals locally allows Uganda to retain more economic value inside the country through jobs, factory development, taxation and industrial expansion.

During the meeting, Museveni reaffirmed his administration’s policy against exporting raw minerals.

“I will support you. Remember, we banned the export of unprocessed minerals,” the President said.

The factory is part of Uganda’s broader industrialisation agenda, which seeks to shift the economy from reliance on raw commodity exports toward manufacturing and value addition.

Value addition refers to processing raw materials into more refined or finished products before export or sale. Economists generally view it as a critical step for developing countries seeking to increase industrial capacity and earn higher revenues from natural resources.

Uganda possesses significant iron ore deposits, particularly in the south-western region. Still, much of the sector has remained underdeveloped due to infrastructure gaps, high industrial energy demands and limited processing capacity.

Those challenges surfaced directly during the meeting.

According to the statement, the investors raised concerns about unreliable electricity supply affecting operations at the plant, particularly because heavy industrial machinery requires stable and continuous power to operate efficiently.

The company also requested government support for transport infrastructure upgrades, including improvements to a 4.2-kilometre road connection linking the Ntungamo–Mirama Hills road and the Kabale–Ntungamo highway.

Particular concern was raised about Kategure Bridge, which investors said urgently requires rehabilitation to support the transportation of machinery, raw materials and finished products from the factory.

Poor transport infrastructure has historically remained one of Uganda’s biggest industrial bottlenecks, especially for heavy manufacturing sectors dependent on moving large volumes of materials.

Museveni assured the investors that government ministries and agencies would work on addressing the obstacles affecting the project.

The discussions also extended beyond mining and metallurgy.

The President welcomed the investors’ involvement in Uganda’s health manufacturing sector through Sino-Africa Medical Devices, a company linked to the same investment group that manufactures World Health Organization pre-qualified long-lasting insecticide-treated mosquito nets.

Mosquito nets treated with insecticide remain one of the most important tools in preventing malaria, which continues to be one of Uganda’s leading public health challenges.

According to the statement, Museveni said the government would consider allocating funds to begin procuring the mosquito nets locally from the company rather than relying on imports.

The move could strengthen Uganda’s domestic manufacturing sector while reducing dependence on imported medical supplies.

The meeting was also attended by Hajjat Amina Mukalazi, head of the State House Local Content Unit, which promotes partnerships between local interests and investors.