Government Tackles Operational Hurdles at Steel and Tube Industries in Namanve

The Ugandan government is actively working to resolve significant operational and infrastructure challenges faced by Steel and Tube Industries Ltd. at the Kampala Industrial and Business Park (KIBP) in Namanve. A high-level delegation, including the Minister of Finance, Planning and Economic Development, Hon. Henry Musasizi, and the State Minister for Privatization and Investment, Hon. Hajjati Aminah Mukalazi, conducted a site visit to engage directly with the company.

Accompanied by Uganda Investment Authority (UIA) Director General Robert Mukiza and a technical team, the ministers toured the facility to identify specific constraints affecting production and future investment plans. A primary concern highlighted was the extensive flooding and drainage issues at the 50-acre site, exacerbated by the local terrain, posing a risk to operations, especially with the approaching rainy season.

Minister Musasizi assured Steel and Tube that the government would explore resource allocation for immediate interventions such as backfilling and other flood mitigation measures. He also detailed broader ongoing infrastructure upgrades at KIBP, including road completion, improved water supply, and enhanced access to reliable and affordable electricity for all manufacturers.

The government emphasized its commitment to fostering a conducive environment for investors, recognizing their contribution to job creation and economic growth through tax revenue and import substitution. In a move to free up land for active development, Minister Musasizi announced plans to reclaim undeveloped plots held by speculators within industrial parks, ensuring land is utilized by genuine investors.

During the engagement, Steel and Tube Industries Chairman, Joseph Yiga, raised additional concerns, including a substantial delayed income tax refund from the Uganda Revenue Authority and the need for policy adjustments on scrap metal exports and trailer assembly kit tariffs. Responding to these points, Minister Musasizi pledged government collaboration with relevant agencies to address these bottlenecks and strengthen the manufacturing sector.

UIA’s Director General, Robert Mukiza, outlined specific infrastructure interventions planned for the park, such as the training of River Namanve and the construction of access culverts, noting that while designs are approved, urgent works are yet to commence. He also advised Steel and Tube to elevate its infrastructure as a supplementary measure against flooding and reported progress on a dedicated hybrid power supply system for the company.

These comprehensive efforts are expected to significantly improve the operational landscape for manufacturers at Namanve, encouraging expansion, investment, and contributing to Uganda’s industrialization goals. The UIA’s update on infrastructure works can be found at ugandainvest.go.ug.