President Yoweri Museveni has inaugurated the Abyssinia Steel Factory in Jinja City, amid esxcitement about advancement in Uganda's steel production capabilities.
The factory is set to enhance the value of the country's high-grade iron ore by utilising local resources in its production processes.
The Abyssinia Group of Industries plans to produce steel blocks independently by combining sponge iron and coking coal.
Notably, the factory will source iron ore from the Muko area in Kabale District, located in southwestern Uganda.
The new factory is anticipated to have a positive impact on Uganda's economy by increasing steel production and reducing reliance on imported steel.
Minister of State for Investment and Privatisation, Evelyn Anite, highlighted the significance of the factory's utilisation of local resources, stating, "This is unique because the factory will be using our natural resources, which is what we have been advocating for."

Additionally, the factory is expected to generate substantial employment opportunities, with 280 direct jobs and 1,800 indirect jobs, thereby contributing to the socio-economic development of the region.
Uganda boasts substantial iron ore deposits, particularly in the southwestern regions of Kisoro and Kabale districts.
These deposits are found in areas such as Kamena, Nyamiyaga, Kyanyamuzinda, Rushekye, Butare, and Kashenyi.
The iron ore in these regions is of high quality, with grades ranging from 55% to 68% iron content.
Government's Stance on Iron Ore Exportation
In 2015, President Museveni imposed a ban on the export of unprocessed iron ore and other minerals to promote local value addition and stimulate industrial growth.
This moratorium aimed to encourage the development of domestic industries and create employment opportunities for Ugandans.
The establishment of the Abyssinia Steel Factory is a direct response to this policy, as it focuses on processing Uganda's iron ore domestically rather than exporting it in raw form.
This approach is expected to boost the country's steel industry and contribute to economic development.