Steel & Tube’s Kamukama Urges Uganda to Turn Iron Ore Into Stee
Uganda should invest more in processing its iron ore locally instead of exporting raw minerals, a move that could strengthen the domestic steel industry and open up new markets for Ugandan manufacturers across East Africa and the wider continent, Steel & Tube Industries has said.
Mr Oscar Kamukama, the company’s marketing manager, said Uganda’s mineral wealth provides an opportunity to build an industrial value chain that starts with locally mined iron ore and ends with finished steel products for the domestic and export markets.
“Mineral beneficiation is essential,” Mr Kamukama said, explaining that processing iron ore to remove impurities and increase its concentration would give the resource greater economic value while providing raw material for local steel production.
He was speaking during the 15th Annual Mineral Wealth Conference and Expo held at Speke Resort Munyonyo in Kampala from September 29 to 30 under the theme, “Beneath the Surface: Unlocking Africa’s Next Mining Powerhouse.”
Uganda has significant iron ore resources, with government sources estimating more than 350 million tonnes of confirmed reserves, while other government investment materials cite about 300 million tonnes of deposits in southwestern Uganda.
Mr Kamukama said the size of the resource presents an opportunity for Uganda to move beyond mineral extraction and develop a domestic iron and steel industry that can support construction and infrastructure development.
He said concentrated iron ore could be processed into steel billets in Uganda, which would then be used to manufacture products such as thermo-mechanically treated reinforcement bars, hollow sections, angle bars and round bars.
That, he said, would allow the country to retain more value from its mineral resources while reducing dependence on imported steel inputs.
“Let us build a unified Ugandan industrialisation story, one that begins with Ugandan iron ore, moves into Ugandan processing, produces Ugandan iron and Ugandan steel, transforms into value-added Ugandan fabricated products, and directly powers national infrastructure projects,” Mr Kamukama said.
Steel & Tube already operates manufacturing facilities in Uganda, including its main plant at Namanve Industrial Park and its Structural Steel Division in Kyambogo.
The company traces its origins to 1985, when Hardware Deals (U) Ltd was established as a steel and hardware trading business before later merging with Steel & Tube Industries Ltd.
Mr Kamukama said developing local production would also give Uganda an opportunity to target regional markets once domestic demand is adequately served.
He identified the East African Community as an immediate market for Ugandan steel products, while the African Continental Free Trade Area could provide a wider platform for manufacturers to expand across the continent.
The AfCFTA brings together 55 African Union member states in a single market of about 1.4 billion people, with a combined gross domestic product of approximately $3.4 trillion.
Mr Kamukama said access to such markets could enable Ugandan manufacturers to move beyond domestic demand and become more active participants in regional and continental supply chains.
However, he said unlocking the potential of Uganda’s mineral resources would require more than discussions at conferences, with government, manufacturers, financiers and investors needing to work together to turn mineral deposits into viable industrial projects.
“The time for summits, forums and workshops must now translate into action to get these minerals out of the ground,” he said.
He said Steel & Tube’s participation in the Mineral Wealth Conference was intended to highlight the importance of involving manufacturers in discussions about how Uganda can convert its mineral wealth into industrial output.
The two-day conference brought together government officials, investors, financiers, mining companies, technology providers and other stakeholders to discuss investment and development opportunities in Uganda’s minerals sector.
The push for greater mineral value addition comes as Uganda seeks to use its natural resources to drive industrialisation and reduce reliance on imported manufactured products.
For Steel & Tube, developing an integrated iron and steel value chain would link Uganda’s mineral resources to manufacturing, construction and infrastructure development, while creating an opportunity to export higher-value steel products to markets within East Africa and across Africa.
