President Yoweri Museveni will on November 23 preside over the groundbreaking of the USh2 trillion Devki steel plant in Tororo. He will be accompanied by the presidents of Kenya and Rwanda, Dr William Ruto and Mr Paul Kagame respectively.
Devki Chairman, Dr Narendra Raval, reveals that when completed in December 2027, the plant will produce one million tonnes of steel every year. ‘It will be the biggest such facility in the Eastern and Central African region, second only to what is in South Africa,’ he says.
Dr Raval explains steel maker Devki Ltd, a Kenyan company, has invested in the project because of the massive amounts of iron ore deposits in Uganda, as well as a stable and predictable tax policy implemented by the government.
Iron ore deposits in Uganda are estimated at 500 million tonnes, and the country doesn’t allow exports of this raw material, not even to neighbouring East African countries.
‘These are the two key factors that made us to think of constructing the plant in Tororo,’ he says.
The plant will directly employ 15,000 Ugandans, and many more indirectly. The Devki Chairman says indirect employment could be as high ten times this number.
The output from the plant will exceed Eastern Africa’s requirements, with Dr Raval explaining that the steel will be consumed in Uganda, and also exported to Kenya, Tanzania, Rwanda, Southern Sudan and the Democratic Republic of Congo.
‘Uganda,’ said Dr Raval during an interview at the Devki offices in Ruiru, ‘will be on the world map as a primary steel producer from iron ore.’
He expressed his happiness that the Uganda government has promised to ban steel imports once production at the Tororo plant begins.
‘This is reassuring to us as investors,’ says the Devki Chairman, pointing out that the one million tonnes produced every year will more than meet the region’s steel needs.
He says steel is important in industrialisation, infrastructure development, and in the construction of low-cost housing (whether by individuals or government).
‘So, other than creating employment opportunities, the steel plant will support the region’s industrialisation drive,’ says Dr Raval. He added that the Devki Tororo steel plant will be a game-changer for East Africa’s development quest, ‘a bold step for the region’s industrialisation.’
Devki is a leading producer of a comprehensive range of premium steel products used in construction, among other sectors. It has diversified and grown for more than two decades into the largest multi-product steel manufacturer in Kenya, with the Tororo plant its first cross-border venture.