President Museveni has praised visionary industrialist Mr. Sanjay Awasthi, the Chairman of Tembo Steels, for his transformative contribution to Uganda’s steel industry. This was as the President commissioned Tembo Steels one-of-a-kind 250,000-ton-per-year (TPY) Direct Reduced Iron (DRI) Plant at Tembo Steels Uganda Ltd, situated in Kasolo Village, Bulamagi Sub-county, Iganga District.
The newly unveiled facility, now Tembo’s second DRI plant, significantly expands the company’s production capacity and reinforces its position as Uganda’s largest—and the only—fully integrated primary steel manufacturer. It also cements Tembo’s reputation as a continental leader in green, innovation-driven steel production.
“I want to thank the Chairman of Tembo Industries for the magnificent work he has done here in Uganda. He came, did his research, and chose Uganda. Now he has transformed the steel industry,” President Museveni remarked during the commissioning ceremony.
A Game-Changing Investment for Uganda
The new Direct Reduced Iron (DRI) plant marks a strategic leap forward in Uganda’s pursuit of industrial self-sufficiency. It enables Tembo Steels to produce sponge iron—an essential raw material in the production of high-quality steel—using locally sourced iron ore. This iron ore, extracted from areas such as Kabale and Togotta, is among the purest in the world, with a remarkable 70 percent purity level.
The plant employs advanced DRI-Electric Furnace technology and is powered entirely by renewable hydropower from the Bujagali Dam. This process is not only energy-efficient but also environmentally responsible, achieving a 70 to 80 percent reduction in carbon emissions compared to the traditional blast furnace method.
Speaking at the commissioning, President Yoweri Museveni highlighted the significance of this development. “We have steel factories in Uganda, yes, but they recycle old scrap—old cars and tanks of Idi Amin. Those products are okay for small buildings, but not for big infrastructure like dams, railways or skyscrapers,” he said. “Tembo is the only one making real, new steel—from rock.”
Museveni Promises Protection for Uganda’s Industrial Pioneers
In a strong policy commitment, the President promised to shield Tembo Steels and other domestic manufacturers from unfair competition posed by imported steel.
“I was shocked to learn that similar or inferior products are being imported tax-free while our people are producing them here. This is sacrilege. It should not happen—and it will not happen in the next budget,” Museveni said, drawing applause from stakeholders.
He emphasized that Uganda will introduce high import taxes on products that are already manufactured domestically, especially those produced through value addition of local resources.
Tembo Steels: A Ugandan Industrial Giant
Founded in 2001 and led by visionary industrialist Mr. Sanjay Awasthi, Tembo Steels has grown into a cornerstone of Uganda’s manufacturing and industrial development. With state-of-the-art production facilities located in Lugazi and Iganga, the company has distinguished itself through its pioneering approach to steelmaking.
Tembo is the only company in Africa that converts all four major steel verticals—long products, flat products, structural sections, and wire rods—using a fully integrated primary steelmaking process. It is also the first company in the world to produce low-carbon steel from cast iron specifically for the African market. Furthermore, Tembo stands alone in Uganda as the only steel manufacturer operating a fully integrated DRI-to-finished-product system, which eliminates the need for billet reheating and significantly improves energy efficiency.
dfcu Bank powers up Auto Finance Market with tailored, full-financing solution.“Tembo is not just a factory. It’s a national model. We are proud to be 100% made in Uganda,” said General Manager Mr. Manish, who hailed the new plant as a catalyst for both industrial growth and environmental sustainability.
Economic Impact and Regional Reach
Tembo’s expansion is not only a technical achievement but also a significant socio-economic milestone. The company has created over one million jobs, both directly and indirectly, contributing immensely to Uganda’s employment landscape. The commissioning of the new plant has further invigorated economic activity in the Busoga sub-region, an area that has long awaited substantial industrial investment.
Through its growing production capacity, Tembo now exports steel products to Kenya, Tanzania, Rwanda, the Democratic Republic of Congo, and Burundi. This expansion into regional markets is helping Uganda reduce its trade deficit while simultaneously strengthening its influence within the East and Central African region.
Speaking at the commissioning, Third Deputy Prime Minister Hon. Lukia Nakadama described the new plant as “a beacon of hope for Busoga.” She added, “This is how we lift communities—by giving them opportunity, employment, and infrastructure.”
Why This Matters: Uganda’s Path to Industrial Sovereignty
Tembo’s second DRI plant enables Uganda to stop relying on imported steel from China, India, or Russia for large infrastructure projects. With this capacity, Uganda can now locally manufacture steel fit for high-rise buildings, railways, dams, and energy projects—at world-class quality and environmental standards.
“Processing our resources here in Uganda is the only way to truly build our country,” Museveni said. “Let the short-sighted people write articles. I will not be deterred. This is where the future lies.”
Looking Ahead: Green Steel for a Resilient Uganda
As global steel prices remain volatile due to shifting demand, energy costs, and decarbonization pressures, Tembo Steels is strategically positioning Uganda to weather these external shocks. By investing in green, vertically integrated steel production, Tembo not only shields the country from international price fluctuations but also ensures the availability of high-quality steel for domestic use.
This is particularly vital as Uganda accelerates its regional infrastructure agenda, including flagship projects like the Standard Gauge Railway (SGR), hydropower dams, and large-scale urban developments. Such ventures require consistent access to strong, reliable steel—standards that imported scrap-based products cannot always meet.
Tembo’s capacity to manufacture steel from Uganda’s own virgin iron ore using environmentally sustainable methods positions it as a national asset. With strong backing from President Museveni and a commitment to innovation, Tembo Steels is doing more than building steel—it is laying the foundation for Uganda’s industrial independence and regional competitiveness in the era of green growth.