Government Backs Roofings' Expansion for Steel Value Addition

Government officials, including the Minister for Finance, Planning and Economic Development, Henry Musasizi, and the Minister for Energy and Mineral Development, Monica Musenero, recently toured the new Roofings Group facility at the Kampala Industrial and Business Park in Namanve. The visit preceded the inauguration of the company’s Ultra-Modern Cold Rolling Mill Complex, a significant $125 million investment.

This new facility boasts an annual production capacity of 150,000 tonnes and will produce key steel products such as Pickled Coils, Cold Rolled Coils, Aluminium-Zinc Coated Coils, and Colour Coated Coils. This expansion is poised to significantly enhance Uganda’s ability to manufacture higher-value steel goods for both domestic and regional markets.

Minister Musasizi emphasized the government’s dedication to supporting manufacturers like Roofings. He highlighted the company’s substantial contribution to value addition within Uganda’s high-value steel sector, accounting for 54% of flat steel manufacturing operations. The government pledges continued support to foster local production, elevate value addition, stimulate job creation, and boost export potential.

During the engagement, Roofings Group CEO Sheikh Arif presented the company’s expansion strategies and raised critical issues requiring governmental attention. These include a request for an additional 70 acres of land in Namanve for a new downstream rebar factory and concerns regarding the refund of the 1% Import Declaration Fee and 1.5% Infrastructure Levy on raw materials for exported goods.

Sheikh Arif also proposed tariff adjustments on industrial metal-coating paints and steel billets to maintain local manufacturers’ competitiveness. Furthermore, he urged the government to collaborate with East African Community partner states to establish a more equitable and uniform regional market for businesses.

Minister Musenero affirmed the government’s support for Roofings’ vision of an integrated iron and steel value chain. Her ministry has already issued a mineral exploration license to Roofings Rolling Mills Ltd, facilitating access to potential raw material sources. Discussions are underway to identify suitable land for a facility capable of processing iron ore into finished steel products, thereby deepening local value addition and reducing reliance on imported steel.

Minister Musenero also pointed to Uganda’s burgeoning automotive manufacturing sector as a future key consumer of locally produced steel. She noted that rapid industrialization within Uganda is creating substantial domestic demand for steel products. The government intends to collaborate with Roofings to align steel production with the nation’s industrial and automotive manufacturing ambitions.

Source: https://ugandainvest.go.ug/government-reaffirms-support-for-roofings-expansion-and-steel-value-addition