KAMPALA — Uganda’s iron ore industry has the potential to create more than 4,000 jobs and transform the country into a regional steel production hub, according to a leading industry executive.
Nirav Patel, the executive director of Steel and Tube Industries (STIL), said the country’s rapidly growing construction sector is driving significant demand for steel, an opportunity that could be amplified by locally processing the country’s abundant iron ore reserves.
“We are currently seeing double-digit growth in the steel industry, in line with the construction boom,” Patel said after receiving a Business Excellence Award. “Projections suggest Uganda will need over 17 million new housing units in the coming years.”
Patel said this demand presents a multi-billion-dollar opportunity, especially if Uganda can reduce its reliance on imported refined steel. He said STIL plans to begin processing local iron ore within the next three years, though he noted a key challenge is access to affordable reducing agents such as gas or coking coal.
The expansion of the steel industry is tied not only to housing but also to major infrastructure projects like roads, hospitals and schools. STIL, founded in 2003, currently exports 20% to 25% of its output to neighboring countries, a share Patel expects to grow significantly.
Aloysius Ntambi, the public relations officer at STIL, reaffirmed the company’s commitment to advancing Uganda’s industrial sector and reducing dependence on imports through the Buy Uganda Build Uganda (BUBU) initiative. He said the company has successfully overcome the past mindset that foreign-made goods are superior.
Ntambi noted that despite progress, raw materials remain a major challenge, as the company currently imports most of its iron ore. He said STIL is exploring deposits in western and northern Uganda and has received support from the government for exploration licenses. Scientists have confirmed Uganda holds some of the world’s highest-grade iron ore, with estimated reserves of more than 500 million tons.
STIL’s products have been used in flagship projects like the Kampala Flyover, Karuma Dam and the Standard Gauge Railway, all of which used locally-sourced steel after rigorous testing.
Prof. Charles Kwesiga, the executive director of the Uganda Industrial Research Institute (UIRI), emphasized the need for strategic value chains, local innovation and industrial self-reliance. He pointed to the bamboo toothpick project as a successful case of import substitution, where locally fabricated machinery parts replaced imported ones at 30% of the original cost.
According to Irene Pauline Batebe, the Permanent Secretary at the Ministry of Energy and Mineral Development, the country is now 100% covered by high-resolution airborne geophysical surveys. She said the government is prioritizing the development of local processing capabilities to reduce the reliance on exporting raw materials. The ministry is also establishing a National Minerals Company to oversee the country’s investments in the mineral sector.
