On October 11, 2024, Uganda marked a pivotal moment in its industrialization agenda with the launch of Unisteel Investment Uganda Limited at the Sino-Mbale Industrial Park. The event was presided over by Deputy Speaker of Parliament, Thomas Tayebwa, who emphasized the importance of this development for the country's economic future. Unisteel's establishment reflects Uganda's strategic focus on boosting local manufacturing and reducing reliance on imports.
Unisteel joins a growing community of over 50 Chinese companies in the Mbale Industrial Park, which is spearheaded by Paul Zhang, chairman of the Tian Tang Group. Zhang envisions turning Uganda into a major industrial hub within the next decade. He highlighted that the park already houses more than 50 factories, providing over 7,000 jobs and aiming to create an additional 20,000 jobs in the next two years, which will significantly contribute to the country's industrial growth.
The Managing Director of Unisteel, Xu Shicun, outlined the factory's substantial investment of Shs 367.7 billion, approximately $100 million. The facility spans 140,000 square meters and is designed to produce high-quality steel products that cater to both the local market and export needs. With an expected annual production capacity of 700,000 metric tons, the factory will manufacture various products, including steel bars, wire rods, hot rolled steel coils, prepainted steel coils, and galvanized steel coils.
Xu Shicun expressed his appreciation for the unwavering support from President Museveni and the Ugandan Parliament. He particularly noted the ten-year tax exemption policy as a critical factor in promoting economic growth and attracting large-scale investments. His project is the first significant investment to be realized in East Africa following the recent Forum on China-Africa Cooperation in Beijing.
During the launch event, Deputy Speaker Tayebwa announced that the Ugandan government, under President Museveni's directive, would inject Shs 400 billion into developing the industrial park. This financial commitment aims to enhance infrastructure and support investors, ensuring that Uganda remains an attractive destination for industrial investment.
To further streamline operations, Tayebwa committed to collaborating with the Uganda Investment Authority to establish a one-stop center within the industrial park. This initiative is expected to facilitate processes such as obtaining work permits and other necessary licenses, minimizing bureaucratic delays for investors. Tayebwa emphasized that investors should focus on expanding their businesses rather than navigating red tape.
Reliable electricity is crucial for the success of the industrial park, and Tayebwa assured stakeholders that addressing power supply issues would be a top priority. He referenced the Presidential directive aiming for power costs to be as low as $0.05 per kilowatt-hour. Plans for a 50 MVA substation by UETCL were announced, which will enhance power stability and support the industrial park's operations.
Unisteel Investment Uganda Limited represents a significant leap forward in Uganda's industrial landscape, promising to enhance local production capacity, generate employment opportunities, and ultimately contribute to the nation's economic development.
