Uganda's development of the steel industry has inherent advantages. For example, Uganda has a wealth of high-grade iron ore resources, strategically geographically radiating neighboring countries. Especially with the rapid development of urbanization in Uganda in recent years, infrastructure construction projects have driven the growth of steel demand, which has brought opportunities for the development of the local steel industry. At the same time, however, Uganda’s development of the steel industry also lacks metallurgical coal resources, high electricity and energy costs, excessive dependence on imported materials and production equipment and technology, slow progress in mineral development, lack of skilled human resources, and low product quality. difficult.

Uganda's steel industry employs about 5,000 people, with an annual steel production capacity of 1 million tons, and a capacity utilization rate of 50.17%, that is, an annual output of about 501,700 tons, of which 32.89% (ie, 165,000 tons) of annual output is made of domestic scrap. Or iron ore production, the remaining 67.11% (that is, 485,200 tons) is produced using imported materials. Imported materials mainly include hot rolled coils, galvanized coils, steel wires, billets, cast iron, scrap steel, etc.

Uganda’s National Planning Bureau released statistics showing that Uganda’s annual average import volume of steel products reached 440,000 tons, total imports amounted to 280 million US dollars; total exports amounted to 200,000 tons, and total exports amounted to US$86 million (trade deficit reached 194 million). US dollars); Apparent consumption of steel per capita is only 15 kg, equivalent to 1/3 of Kenya.

There are 32 steel enterprises in Uganda, mainly in the short-flow electric furnace steelmaking enterprises, and there are very few long-flow integrated steel enterprises. Uganda Baati Co., Ltd., Steel and Tube Industries Co., Ltd., Steel Rolling Mills Co., Ltd., Tambo Steel Co., Ltd. Major steel companies such as Tembo Steel Co., Ltd. use semi-finished products as raw materials for production.

At present, Uganda is also planning to establish a comprehensive steel plant. At least four steel companies plan to use sponge iron for production by 2020, and are actively communicating and negotiating with the Uganda National Planning Bureau.