Less effort is put in Iron and Steel Sector Business Opportunities. For any Investor who would like to start a steel mining and processing company in Uganda. this is the time because there is ready market for iron products.
Uganda’s iron and steel industry has been growing at unprecedented rates averaging 20% and 30% per annum respectively for imports and exports between 2002 and 2006 due to a booming housing and construction sector in the region.
These growth trends, however, are enough to warrant an over generalization of the export activities of the Ugandan steel industries.
It also suffices to note that the local steel industry is export oriented and have been able to take advantage of its location as a “land locked country” on other “land locked” countries that make up Ugandan borders.
Although most of the iron and steel raw material products are currently imported, it should be noted that iron ore occurs abundantly in Uganda mainly in two areas: the hematite ore of Muko Kabale/Kisoro area and the magnetite ore at Sukulu and Bukusu in Tororo.
Hematite ore is also known to occur at Mugabuzi, in Ssembabule District and all these are largely untapped with immense opportunities for investors to take advantage of.
Investment opportunities exist in Uganda’s iron and steel sector, starting from primary stages of mining and processing, and to smelting which can be linked to downstream industries, for instance in the manufacturing of implements.
Most of the industrial and steel making activities in Uganda are currently centred in and around Kampala, Jinja, Tororo and in the South Western part. Jinja in particular was, and still is, the industrial hub of the country.
Domestic demand in steel is related to and very much dependent on the state and growth of the domestic construction industry.
Due to its strategic location in the region, the local demand for steel products is also influenced by the general aggregate demand in the region because of the trading activities.
Steel (long and flats), being an important component of structures and buildings, are used extensively in most construction activities.