Kabale leaders back Chinese pig-iron project to spur jobs, growth
Chinese investors at Kabale District headquarters ahead of a stakeholder engagement meeting on April 15, 2025. PHOTO/ ROBERT MUHEREZA
What you need to know:
- The new plant is expected to boost local economic activity, value addition, and industrial growth in the region.
Leaders in southwestern Uganda's Kabale district have approved the construction of a multi-million-dollar pig-iron processing plant, expressing optimism over job creation and local development.
Chinese firm Sino Minerals Investment Company plans to invest over $34 million in a three-phase project in Buhara sub-county, officials said.
The first phase, worth $13 million, will focus on pig-iron production, followed by steel billets and finished steel products in later stages.
“This investment is welcome. Our people will benefit from employment and fair use of the iron ore resource,” said Kabale District chairman Nelson Nshangabasheija.”
District leaders met with Sino Minerals general manager Brian Munanura and officials from the Uganda Electricity Distribution Company Limited (UEDCL) on Tuesday at the Kabale District headquarters.
The factory is to be built in Kyasse and Kijonjo villages, with construction expected to be completed by December, according to Munanura.
“We’ve already secured 75 acres for the site. About 90 percent of project-affected persons will be compensated after Easter,” he said.
“We’re working with UEDCL to extend a 33kV high-voltage power line from Rubanda’s new power station,” he added.
Munanura noted that the factory will run on hydroelectric power, aiming to limit emissions compared to coal- or wood-powered plants.
“This will be the first pig-iron facility in Uganda and East Africa, marking a milestone for the region’s industrialisation,” he said. “We expect around 1,000 direct jobs.”
While welcoming the development, district leaders stressed the need for environmental safeguards and local benefit-sharing mechanisms.
“A memorandum of understanding is essential,” said Baker Turyamureba, chair of the district’s natural resources committee. “We must ensure proper land refill after mining and address emissions and dust control to avoid pollution.”
The leaders also called for clear terms on royalties to benefit local communities.
Deputy district speaker Ronald Ian Mugisha echoed concerns over transparency and environmental impact, urging the company to involve local stakeholders at every stage of the project.
Kabale, located near Uganda’s border with Rwanda, sits on rich iron ore deposits that have remained largely untapped for decades.
The new plant is expected to boost local economic activity, value addition, and industrial growth in the region.
“The goal is not just extraction. It’s about building a sustainable iron and steel value chain in Uganda,” Munanura said.
