By Shamim Saad
The Government has moved to address operational and infrastructure challenges affecting Steel and Tube Industries Ltd at the Kampala Industrial and Business Park in Namanve, with a focus on improving the company’s operating environment.
The Minister of Finance, Planning and Economic Development, Hon. Henry Musasizi, together with the State Minister for Privatization and Investment, Hon. Hajjati Aminah Mukalazi, Uganda Investment Authority (UIA) Director General Robert Mukiza and a technical team from the Ministry of Finance, visited the facility to engage the company on the challenges affecting its operations and investment plans.
The engagement focused on identifying practical interventions to address infrastructure constraints, improve production and unlock the company’s investment potential.
During the visit, Hon. Musasizi noted that Steel and Tube Industries, which occupies 50 acres of land provided by Government, faces significant flooding and drainage challenges due to the terrain of the area.
He said Government would assess available resources to support backfilling and other measures to minimize the impact of flooding on the factory’s operations, particularly ahead of the September rains.
The Minister said Government was also undertaking broader infrastructure improvements at Kampala Industrial and Business Park (KIBP) in Namanve, including completion of roads, improving water supply and ensuring access to affordable and reliable electricity for manufacturers.
He stressed the importance of Government maintaining close engagement with investors to understand their challenges and provide timely and practical solutions.
“Gone are the days when government was too hierarchical. We want to bring investment to the people we serve,” he said.
Hon. Musasizi further reaffirmed Government’s commitment to creating an enabling environment for manufacturers and investors who contribute to the economy through tax payments, job creation and import substitution.
He also announced that Government would move to reclaim undeveloped land in industrial parks that remains in the hands of speculators, noting that the law provides for land allocated to investors to revert to Government if it is not developed within the stipulated period.
He said the move would help unlock industrial land for genuine investors ready to establish businesses, create jobs and increase domestic production.
Steel and Tube Industries Chairman, Joseph Yiga, raised concerns over a delayed income tax refund from the Uganda Revenue Authority amounting to sh14.6 billion.
He said the delay was affecting the company’s proposed $255 million integrated steel project at Nshaara Ranch, which is expected to contribute to further steel value addition and industrial development.
Yiga also raised concerns over restrictions on the export of stainless-steel scrap and called for harmonized tariff treatment for trailer assembly kits to support local manufacturing.
In response, Hon. Musasizi assured the company that Government, working with the relevant agencies, would address the identified bottlenecks.
He said resolving the challenges would strengthen Uganda’s manufacturing sector, promote local value addition, attract further investment and create more employment opportunities.
UIA Director General Robert Mukiza said a number of infrastructure interventions had been identified to address flooding and improve access to the industrial park.
He said the proposed works include training of River Namanve and construction of access box culverts to Steel and Tube Industries Ltd, as well as works along Road B5 to improve access for park users.
Mukiza said the contractor had received the Employer’s No Objection to its technical and financial proposal for the works in a letter dated August 10, 2026.
However, he noted that the urgent works on River Namanve are yet to commence.
To further mitigate the impact of flooding, Mukiza advised Steel and Tube Industries to raise its infrastructure platforms to a level above the Lake Victoria invert.
He also reported progress on improving the company’s power supply, saying the contractor had received Uganda Electricity Distribution Company Limited (UEDCL)-approved designs and specifications for a hybrid power supply system, including an additional feeder dedicated to Steel and Tube Industries.
“Procurement of materials is in progress,” Mukiza said.
The interventions are expected to improve the operating environment for manufacturers at Namanve, support expansion and investment, and contribute to Uganda’s industrialization, job creation and local value addition.
ENDS
