Uganda's Industrial Push: Steel & Tube Champions Local Manufacturing Surge

Steel & Tube Industries Limited, a four-decade-old Ugandan company, is strategically moving to establish an integrated iron ore-to-steel value chain in Kanungu. This shift aims to reduce reliance on imports and boost local value addition, reflecting Uganda's burgeoning construction sector and national manufacturing ambitions. The bold plan, though subject to feasibility, marks a significant step for the company's future growth and the nation's industrial self-sufficiency.
Precious Eseaye
Precious Eseaye • Travel • 3 hours ago • 3 minute read •
Uganda's Industrial Push: Steel & Tube Champions Local Manufacturing Surge

Four decades after its inception, Steel & Tube Industries Limited (STL) is poised to significantly advance its position within Uganda's manufacturing value chain, driven by escalating construction activities and a national imperative to lessen dependence on imported industrial inputs. Having commenced operations in 1985, STL has established extensive manufacturing facilities across Namanve, Kazinga, and Nakawa. The company currently provides direct employment to over 1,600 individuals and indirectly supports more than 8,000 additional jobs. Its products are widely distributed throughout East Africa, reaching markets in Kenya, South Sudan, the Democratic Republic of Congo, Rwanda, Burundi, and Tanzania.

The next strategic phase for Steel & Tube shifts focus from merely expanding finished-product capacity to securing access to critical raw materials within Uganda. The company has obtained a license from the Ministry of Energy and Mineral Development to pursue mineral development activities in Kanungu. Here, STL is actively exploring the feasibility of developing an integrated iron ore-to-steel value chain. This ambitious undertaking would encompass the beneficiation of iron ore, followed by ironmaking, steelmaking, and the casting of billets, which are crucial intermediate inputs for products like reinforcing bars. While the project remains subject to rigorous technical and commercial feasibility assessments, its implementation would signify a substantial move upstream for STL, a company traditionally operating further along the steel production chain. This strategic pivot aligns perfectly with the Ugandan government's broader objectives of increasing local value addition and reducing reliance on foreign industrial inputs.

Steel & Tube's expansion strategy is a direct response to the sustained growth of Uganda's construction industry, which continually generates robust demand for steel products used in diverse buildings, infrastructure, and other development projects. Speaking at the Construction Hardware Dealers Association (CHADA) Convention 2026, Oscar Kamukama, STL's Head of Marketing, underscored the company's commitment to understanding evolving market requirements. He highlighted that extensive engagements with dealers, contractors, and other industry stakeholders, including customer visits, exhibitions, workshops, and industry forums, are vital channels for gathering feedback. This market intelligence has been instrumental in the development of a product portfolio tailored to various segments of the construction market, which includes reinforcing bars, water tanks, wheelbarrows, hoop iron, expanded metal, structural steel products, and trailers. The company also boasts a dedicated Structural Steel Division specializing in pre-engineered buildings. Increasingly, STL's strategy is not just about product expansion but about integrating more stages of production and solidifying its regional market presence.

Product quality and adherence to standards emerged as a prominent theme at the CHADA convention, where discussions centered on responsible manufacturing and the pivotal role of hardware dealers in the construction supply chain. Kamukama articulated Steel & Tube's philosophy that quality and customer service are intrinsically linked aspects of its business, stating,

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