Uganda's iron and steel industry is expected to receive a major boost with the planned establishment of the Elgon Steel Factory at the Sino-Uganda Mbale Industrial Park, with commercial production scheduled to begin in April 2027.

The proposed factory will process locally sourced iron ore into finished iron and steel products, including steel bars, as Uganda intensifies efforts to add value to its mineral resources and strengthen its industrial sector.

The development was highlighted during the official launch of the China–Africa International Trade Industrial Park in China, where Minister of State for Privatization and Investment Aminah Mukalazi received an update on the Elgon Steel Factory project.

The proprietor of the industrial park, Mr Jiang, informed the minister that preparations for establishing the factory were in their final stages.

According to the project update, the facility will use iron ore sourced from Kabale District and other parts of Uganda to manufacture finished steel products targeting growing markets across the region and the African continent.

The project is expected to reduce reliance on the export of unprocessed mineral resources by supporting local processing and manufacturing. It will also contribute to the development of Uganda's iron and steel value chain.

During the engagement, Mukalazi reaffirmed the government's commitment to supporting the investment, particularly by facilitating access to essential production inputs, including coal, which is not locally available.

She also highlighted government measures intended to strengthen Uganda's industrial competitiveness and attract investment into manufacturing.

These measures include a target electricity tariff of USD 0.05 per kilowatt-hour, predictable and stable tax and non-tax incentives, and government support in facilitating access to markets.

Affordable and reliable electricity, access to production inputs and a predictable investment environment are among the factors expected to support the factory's operations and competitiveness.

Once operational, the Elgon Steel Factory is expected to contribute to domestic mineral value addition by transforming Ugandan iron ore into finished products for local and regional consumption.

The planned April 2027 commencement of commercial production marks an important anticipated milestone for the project and Uganda's ambitions to expand its manufacturing capacity and develop its iron and steel industry.