Steel & Tube Industries Limited, a Ugandan steel producer with four decades of operations, is pivoting upstream to develop an iron ore-to-steel value chain, aligning with the government’s push for local manufacturing and reduced reliance on imports. The company, which began operations in 1985, now operates facilities in Namanve, Kazinga, and Nakawa, employing over 1,600 people directly and supporting 8,000 indirect jobs. Its products serve regional markets including Kenya, South Sudan, and Rwanda. However, its next growth phase hinges on securing domestic raw materials, prompting a license from the Ministry of Energy and Mineral Development for iron ore exploration in Kanungu District.
The proposed Kanungu project aims to establish an integrated iron ore-to-steel production chain, involving beneficiation, ironmaking, and steelmaking. Steel & Tube emphasized the initiative remains subject to technical and commercial feasibility studies. If realized, the move would mark a significant shift from its traditional role as a steel product manufacturer to a vertically integrated producer, supporting Uganda’s broader goal of increasing local value addition and reducing industrial import dependency.
This strategic pivot coincides with surging demand in Uganda’s construction sector, which continues to drive steel consumption for infrastructure and building projects. At the 2026 Construction Hardware Dealers Association (CHADA) Convention, Steel & Tube’s Head of Marketing, Oscar Kamukama, highlighted the company’s focus on market feedback through dealer engagements, contractor collaborations, and industry forums. Kamukama noted that customer insights have shaped product development, including reinforcing bars, structural steel, and pre-engineered buildings, while underscoring the importance of quality and service in fostering long-term client relationships.
Minister of State for Trade General Wilson Mbadi addressed the CHADA convention, urging manufacturers and dealers to uphold quality standards and prioritize locally produced goods. He warned against violations of the Fair Competition Act, including price fixing, which could incur penalties of up to 10% of annual turnover. Mbadi’s remarks underscored the tension between expanding domestic manufacturing and safeguarding consumer interests, a debate central to Uganda’s industrial policy.
Steel & Tube has supplied materials for major projects such as the Katonga Bridge restoration, Entebbe International Airport upgrades, and the Uganda Cancer Institute. The company also partnered with Roofings Group on the Hoima City National Stadium, illustrating how large-scale infrastructure projects can unite competing suppliers. However, the Kanungu initiative faces hurdles, including the need for reliable energy, transport, and financing, as well as the quality and quantity of available iron ore. Steel & Tube has yet to finalize the project’s scale or timeline.
The proposed upstream shift reflects a broader challenge for Uganda’s manufacturing sector: transitioning from importing raw materials to leveraging domestic mineral resources. At the Uganda International Trade Fair, Steel & Tube plans to showcase its expanded operations, positioning itself as a key player in the country’s push for regional trade and value addition. The success of the Kanungu project could determine whether Uganda’s steel industry moves beyond finished-product manufacturing to a more self-sufficient, integrated model.
Steel & Tube’s four-decade history provides it with a strong market foothold, but its next challenge lies in proving its ability to transition from steel production to a comprehensive local value chain. As Uganda seeks to balance economic growth with industrial sustainability, the company’s upstream ambitions will be closely watched as a potential blueprint for the nation’s manufacturing future.