Ministers visit Tembo, Abyssinia steel companies

Aug 04, 2023

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IGANGA

The Minister of Energy and Mineral Development, Ruth Nankabirwa, has urged investors in the steel and mining industry to continue prioritising value addition to their raw materials in order to build a strong base for the economy.

Nankabirwa also said once value addition is done among steel companies; and in oil and gold refineries in Uganda, this will end poverty in the country. She was speaking during her visit at Tembo Steel Company in Iganga district on Thursday.

She led the Cabinet sub-committee on mineral development on a three-day field trip to assess the status of mining activities in the Eastern region.

Nankabirwa was accompanied by state minister of planning Amos Lugoloobi, defence state minister Jacob Oboth Oboth, representatives from the Attorney General’s office and ministries of trade and science.

Awasthi (second-left) shows Nankabirwa (left) and other officials some of the components of Tembo Steel factory. (Photo by Donald Kiirya)

While at Tembo Steel Company, Nankabirwa, told investors that a complete production chain is the way to go and was happy that the entire East African region is focused on the same.

“Every country has been brought into sync as far as value addition is concerned and what is in Moscow is that Africa is speaking the same language of value addition for its raw materials,” Nankabirwa said.

She said foreign investors should come and do technology transfer to Africans so that they get money and continue fighting poverty and asked herself how they would end poverty yet they are donating jobs, raw materials to those who are rich.

Nankabirwa (left) together with other officials touring the Abyssinia Iron and Steel factory in Jinja on Thursday. (Photo by Donald Kiirya)

Nankabirwa was impressed to see that iron ore was being processed up to the finished products at Tembo Steel Company.

In response to challenges raised by Tembo Steel factory’s general manager Manish Kalla and the chairperson Sanjay Awasthi which included having affordable tariffs, constant power supply, affordable taxes and security, Nankabirwa promised that as a committee, they were going to expand their scope and make sure they discuss the challenges and recommend to Cabinet so that they see investors breaking even and make profits but at the same time promoting Buy Uganda Build Uganda.

Value addition

Lugoloobi said Uganda had been predominantly a net exporter of raw materials and according to the President of Uganda, this perhaps is responsible for the virtuous cycle of poverty that Ugandans have been dwelling in for so many years.

He thanked investors for establishing Tembo Steel as an integrated industry in the steel sector adding that this is in line with one of the key points in the ten-point programme of the NRM of building an integrated independent economy.

Abyssinia

From Tembo, the committee headed to Abyssinia Group of Industries in Jinja city where it was welcomed by Sanjay Kalburgi, the general manager in charge technical, who took the team on a tour of the factory.

Kalburgi told Nankabirwa that they are going to expand the plant by installing a new steel making factory with modern technology.

He said sponge iron is already in production and their production capacity is between 100-110 tonnes of sponge iron per day adding that they get raw materials (iron ore) from Kabale, coal from Tanzania and other materials from Moroto region.

Nankabirwa also assured management at Abyssinia Group of Industries that the Government was working around the clock to expand its markets to neighbouring countries like DR Congo.

She said power stability and reliability will be solved under the East African power pool that has 13 member countries.

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