The firm’s chairman, Dr Narendra Raval, announced this during the groundbreaking ceremony officiated by President Yoweri Kaguta Museveni and Kenya President William Samoei Ruto on 23 November.
However, looking at the big picture, Dr Raval explained that the groundbreaking was a historic day not only for Uganda, but for all East Africa – because the region will benefit too.
His company will build the plant at a cost of USh2 trillion. It will take two years to complete, setting the stage for Uganda to become a net steel exporter by 2028.
President Museveni said the commissioning of the steel plant is part of the process of economically liberating Africa, and explained that this is why he has banned the export of all unprocessed minerals – including iron ore. 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.
Said the president: ‘I congratulate Dr Raval for helping us fulfill our vision of adding value to this Obutare (iron ore). I also congratulate His Excellency President Ruto for encouraging Dr Raval to come and invest here.’
President Ruto said the steel project ‘ushers in a new audacious chapter in Africa’s industrialisation ambition.’
He added that the project ‘is the outcome of visionary leadership, daring entrepreneurship, and enduring partnership between the private sector and our two governments. It reflects a collective commitment to sustainable development, regional integration, and the pursuit of transformative impact for our present and future generations.’
Once the plant starts production, Uganda is set to reduce its trade deficit by more than $1 billion every year. Because steel will be produced locally, it will save on the $500 million it spends on importing this commodity. Beyond this, the country will export to neighbouring countries steel worth at least $400 million.
The Tororo plant will directly employ 15,000 locals. Another plant the Devki Group will establish in Kabale to refine the iron ore will employ 1,600 more.
‘Also, we’ll be paying taxes to the government,’ added Dr Raval.
Typically, Devki invests in school feeding programmes wherever it establishes a factory. The community around Tororo is set to witness this.
Dr Raval said the confidence the Uganda government has shown Devki will encourage other investors to consider investing in the country.
‘President Museveni has assured me that once this company has started the production of steel, he will not impose duty on imports; he will ban importation,’ said Dr Raval.
He explained why this matters. ‘Importing steel is importing the poverty. We are exporting our jobs.’
The steel plant is projected to produce one million tonnes of steel every year, output that exceeds the demand by Uganda and the East African region.
The commodity will be exported to Kenya, Tanzania, Rwanda, Southern Sudan and the Democratic Republic of Congo (DRC).
Steel is important in industrialisation, infrastructure development, and in the construction of low-cost housing (whether by individuals or government).
Dr Raval said the Devki Tororo steel plant will be a game-changer for East Africa’s development, ‘a bold step for the region’s industrialisation.’