By: Daily monitor

The Devki Group is making a major $550 million investment to establish a new steel manufacturing plant in Tororo, Uganda, responding to the acute and growing demand for steel within East Africa. This project represents the company's 20th industrial investment in the region and will bring Devki's total East African investment to $1.1 billion upon completion. The plant is strategically positioned to utilize Uganda's substantial iron ore deposits, estimated at 500 million tonnes, to bolster local production and reduce dependency on imports.

This investment is driven by a robust and expanding regional market. According to the World Steel Association, Africa's steel demand is projected to grow at a 2.2% Compound Annual Growth Rate, with the market expected to reach 52 million tonnes by 2034, up from 39 million tonnes in 2024. East Africa is at the forefront of this growth, fueled by large-scale infrastructure projects and rapid industrialization.

Key national initiatives are creating massive demand for steel. Kenya's ambitious affordable housing program is a primary driver, requiring vast quantities of construction materials. Furthermore, the joint Pamoja bid by Kenya, Uganda, and Tanzania to host the 2027 Africa Cup of Nations (AFCON) is accelerating the renovation and construction of stadiums and related sporting infrastructure, further intensifying the need for locally produced steel.

The new facility aims to significantly alter the region's economic landscape by reversing Uganda's substantial steel import bill, which currently stands at approximately $840 million annually. The chairman of Devki Group, Narendra Raval, stated that the plant will not only curb imports but also position Uganda to become a net exporter, with the potential to export over $4 billion worth of processed steel to neighboring countries each year.

Once operational, the Tororo plant is set to become the largest steel production facility in Africa. This follows the decision by ArcelorMittal South Africa to wind down its long steel operations. The Ugandan plant will employ advanced blast furnace technology, which is recognized for producing the highest quality steel, ensuring its competitiveness in both regional and global markets.

The project is also a significant source of employment, expected to create 15,000 jobs for locals in various sectors, including mining, transportation, and manufacturing. This will provide a substantial economic boost to the Tororo region and contribute to skills development within Uganda's industrial workforce.

In summary, the Devki steel plant is a transformative industrial project for East Africa. By leveraging local resources to meet regional demand, it aims to reduce import costs, create thousands of jobs, and establish East Africa as a key player in the continental steel market, turning a critical infrastructure need into a major economic opportunity.