During the trial production launch of the first phase rolling and the second phase production groundbreaking ceremony of Unisteel Investment Uganda Limited, a new iron and steel manufacturing plant on Friday, Tayebwa announced that Uganda’s government, under President Museveni’s directive, would inject shs400 billion into the park’s development.
“We shall give you all the support and protection you need to invest in our country. On the directive of President Museveni, the government is going to invest shs400 billion to transform this industrial park, and I am going to follow it up to ensure it is fulfilled,” Tayebwa vowed.
He also committed to working with the Uganda Investment Authority (UIA) to establish a one-stop centre within the industrial park, streamlining services for investors. This move would eliminate the need for businesspeople to travel to Kampala for critical services such as work permits, thereby reducing delays and enhancing convenience.
“Investors should focus on expanding their businesses, not dealing with bureaucratic hurdles. Money doesn’t want excuses,” Tayebwa stated. “These people secure loans from banks for their investments, and we shouldn’t add to their challenges.”
The Deputy Speaker further emphasized that stable electricity will be a top priority for the park, promising to address any issues affecting operations in the industrial park. This is expected to make operations smoother for investors and bolster productivity.
Unisteel Investment Uganda Limited is a Chinese-built, Shs367.7 billion ($100 million) iron and steel manufacturing facility, marking a significant milestone for Uganda’s industrial sector. The factory, once fully operational, is expected to produce high-quality steel products, reduce the country’s reliance on imports, and create hundreds of jobs for local residents.
Tayebwa expressed his enthusiasm for rallying both Parliament and the entire government behind the investors at Unisteel, noting that their success would be a significant boost to Uganda’s industrialization agenda.
“We are going to ensure any issues disturbing you are sorted,” Tayebwa reassured, calling the launch of the new plant a testament to the country’s growing potential as a regional industrial hub.
Xu Shicun, the Chairman of UniSteel Investment Uganda Limited expressed his gratitude to both Parliament and President Museveni and revealed that his project is the first large-scale investment project to be implemented in East Africa after the Beijing Summit of the Forum on China-Africa Cooperation 2024 and thanked the government and Parliament for ensuring that there is a perfect investment climate for them.
“First of all, I would like to express my sincere gratitude to Mr President Museveni and the Ugandan Parliament for their attention and support to industrialization. The ten-year tax exemption policy provided to our enterprises in the park has provided strong support for our future development and growth. In addition, the convenient and efficient customs clearance service provided by the government has also saved us time and improved efficiency in construction and operation.”
Mr Xu asserted that the plant is the total investment figure of UniSteel Investment Uganda Limited over 100 million US DOLLARS, covering an area of 140,000 square meters, annual production capacity reaching 700,000 tons.
“The first phase of the plant covers an area of 50,000 square meters and has nearly 500 local employees. It is one of the largest steel mills in East Africa with the most advanced steelmaking technology. It will provide Uganda with high-quality rebar, wire round and other steel products to fill the gap in Uganda’s refined steelmaking technology,” he said.
He also expressed gratitude to Mr. Paul Zhang and Mbale Industrial Park for their significant support. Noting that Chairman Zhang provided land, financial assistance, and one-stop service for the steel plant, which streamlined the construction process and reduced time and communication costs, allowing the project to progress rapidly.
“Steel is the most important career of my life, and Mr Paul Zhang is also my most important partner and good brother in this life. The brotherhood between us is as strong as steel, which will always support us to build the steel plant into a first-class steel enterprise in East Africa!” He expressed his confidence that UniSteel will prioritize “quality first, safety first, technological innovation, and green development,” positioning itself as the leading steel company in East Africa and advancing the growth of Uganda’s steel industry.
While reflecting on the challenging journey of constructing Mbale Industrial Park, Chairman Zhang noted that it began as “nothing more than barren land.” Despite difficulties, particularly during the pandemic from 2020 to 2023, the team worked tirelessly to keep the project alive.
They faced rejections from Chinese investors and financial struggles, borrowing from family, friends, and banks. Even amid setbacks like a devastating flood and a fire at Grace Textile, they continued developing the park by repairing canals, building temporary roads, and attracting investments.
“Today, I proudly state that there are over 50 factories in the park, creating more than 6,000 jobs, with plans to generate an additional 20,000 jobs in the next two years, which will aid Uganda’s industrialization and improve the lives of its people,” he said.
However, he emphasizes ongoing challenges, including a shortage of electricity, stating, “development of industrial demand on sufficient and stable power supply guarantee.” He points out that the first phase of UniSteel requires a 70MVA power demand, but the park currently has only one 50MW mobile substation. He urged the government to fulfil its promise to complete a 240MW substation.
He also called for accelerated construction of essential infrastructure, such as roads and water supply, and requested Parliament and the government to approve the budget promptly to avoid delays. “Finally, I express my gratitude to various leaders and supporters, looking forward to further development for Uganda, UniSteel, and Mbale Industrial Park.”
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