Key Points
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Narendra Raval launched a $500 million steel plant project in eastern Uganda.
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The plant targets up to one million tonnes of steel output annually.
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Officials expect up to 20,000 jobs as related industries expand.
Kenyan industrialist Narendra Raval has broken ground on a $500 million steel plant in eastern Uganda. Regional leaders say the project will create jobs, strengthen supply chains, and reduce reliance on imported steel.
The facility, called Devki Mega Steel, is being built by Devki Group in Kayoro village, Tororo District, near the Kenyan border. Uganda President Yoweri Museveni and Kenya President William Ruto attended the launch ceremony on Nov. 23.
Plant Capacity And Job Creation
Officials say the Tororo plant will run as a vertically integrated steel facility. It is designed to produce up to one million tonnes of steel each year.
At start up, the project is expected to employ about 15,000 workers in Tororo and Mbarara. Over time, that figure could rise to around 20,000 by 2027. Mining, logistics, and support services are expected to drive the increase. Developers say steel production should begin in 2027.
Push For Local Value Addition
Museveni described the project as part of Uganda’s wider push to retain more value from its natural resources.
According to him, local mineral processing reduces losses linked to exporting raw materials and importing finished goods. It also helps conserve foreign exchange while creating skilled jobs.
In recent years, Uganda has tightened restrictions on exporting unprocessed minerals. At the same time, the government has expanded incentives for manufacturers operating in industrial parks.
Regional Demand And Trade Links
Ruto said the Tororo plant reflects growing regional cooperation in industrial development. He added that it could help meet rising demand for construction materials across East Africa.
He cited projections showing Africa’s steel demand rising from about 39.5 million tonnes in 2024 to 52 million tonnes by 2034. As a result, he said regional producers should supply a larger share of that market.
Meanwhile, Kenya and Uganda are discussing expanded transport infrastructure. These talks include rail extensions and upgrades to key trade corridors aimed at lowering costs for heavy industry.
Reducing Import Dependence
Ugandan officials say the country spends billions of dollars each year importing steel products. Estimates from Ecofin Agency put the annual figure at about $5 billion.
The Tororo plant is expected to cut that outflow by producing flat steel sheets and other intermediate products locally. In turn, this should ease pressure on foreign exchange reserves.
Museveni also said Raval plans a separate iron ore project in Kabale District. The project could create more than 16,000 jobs and supply raw materials to the Tororo plant.
He urged host communities to settle land issues early to avoid construction delays. He also pledged government support for compensation where required.
