Finance Minister Henry Musasizi has pledged urgent government intervention to resolve infrastructure, tax and policy bottlenecks threatening manufacturing and investment at Namanve Industrial Park.
Musasizi made the commitment during a working visit to Steel & Tube Industries Ltd, where he inspected the company’s operations and held discussions with its management over challenges affecting production, expansion and job creation.
The minister was accompanied by Minister of State for Investment Aminah Mukalazi, Uganda Investment Authority Director General Chris Mukiza and a Ministry of Finance, Planning and Economic Development technical team led by Deputy Secretary to the Treasury Patrick Ocailap.
The visit was aimed at taking government officials directly to the factory floor to identify obstacles affecting investors and develop practical solutions instead of relying solely on office-based assessments.
One of the most immediate concerns encountered during the visit was persistent flooding at the Steel & Tube facility.
Musasizi observed that parts of the plant remain vulnerable to flooding, with the problem attributed to incomplete backfilling, outstanding civil works and inadequate drainage infrastructure.
With September rains expected to intensify, the minister directed that the outstanding infrastructure works be addressed urgently to prevent further disruption to industrial operations.
The flooding concern adds to a wider list of challenges raised by Steel & Tube management, including delayed tax refunds and regulatory restrictions that the company says are affecting its investment plans.
Steel & Tube Chairman Joseph Yiga told the government delegation that the company is awaiting an income tax refund of Shs14.6 billion from the Uganda Revenue Authority.
Yiga said the delay in receiving the money was affecting the company’s planned USD255 million integrated steel project at Nshaara Ranch.
The proposed investment is expected to deepen steel production and local value addition, but the company indicated that unresolved financial and regulatory constraints could slow the project’s implementation.
The Shs14.6 billion tax refund therefore emerged as one of the key issues requiring government attention as officials assessed the broader operating environment for manufacturers.
Yiga also raised concerns over restrictions on the export of stainless-steel scrap, arguing that the policy has implications for the company’s operations and the wider steel value chain.
The company further asked government to harmonise tariff treatment for trailer assembly kits, saying a more consistent tariff regime would support local assembly and strengthen domestic manufacturing.
The requests place pressure on several government agencies to coordinate their responses, particularly where the concerns involve taxation, trade policy, industrial infrastructure and investment facilitation.
Musasizi assured the company that the government would work with the relevant agencies to address the identified bottlenecks.
He emphasised the need for stronger field-based engagement between government officials and investors, arguing that visiting industrial facilities allows authorities to understand challenges first-hand and respond with practical solutions.
The minister said resolving the problems facing manufacturers was critical to strengthening Uganda’s industrial base, increasing local value addition, attracting new investments and creating employment opportunities.
The Namanve visit comes as government continues to position industrialisation and private-sector investment as key drivers of economic transformation.
For manufacturers, however, infrastructure gaps, delayed government payments and tax refunds, as well as regulatory and tariff challenges can increase production costs and undermine expansion plans.
Steel & Tube’s case highlights the gap that can emerge between government’s industrialisation ambitions and the practical challenges encountered by companies operating on the ground.
The company’s USD255 million integrated steel project is particularly significant because of the potential scale of investment and its contribution to Uganda’s steel industry.
Government’s response to the company’s concerns will therefore be closely watched by other manufacturers and investors seeking clarity on the ease of doing business in Uganda.
Musasizi said the government’s intervention would not be limited to the issues raised by Steel & Tube, but would form part of a broader effort to strengthen engagement with investors and ensure that bottlenecks are identified and resolved before they undermine production.
The minister’s directive on the Namanve flooding problem also puts pressure on authorities responsible for industrial park infrastructure to complete outstanding works ahead of the September rains.
For Steel & Tube, the immediate priorities are the resolution of the flooding challenge, settlement of the Shs14.6 billion tax refund, clarification of the stainless-steel scrap export restrictions and harmonisation of tariffs affecting trailer assembly.
Government officials have now committed to working with the relevant agencies to address the concerns, with Musasizi stressing that effective intervention should ultimately translate into increased production, investment, local value addition and jobs.
The visit signals a shift towards more direct government engagement with industrial operators as authorities seek to remove the bottlenecks standing between Uganda’s industrialisation ambitions and actual factory-floor production.
