NTUNGAMO.
President Museveni has asked the people of Ntungamo District to identify 300 acres of land for the establishment of a factory to manufacture industrial charcoal.
“I was in Jinja recently and met young industrialists under a group called Abyssinia Industries who are making steel products, and one of them told me that he loved Ntungamo,” Mr Museveni said.
Located in Jinja District, Abyssinia Iron & Steel (Uganda) Ltd, is a subsidiary of the Abyssinia Group of Industries, one of East Africa’s largest steel producers with an annual capacity exceeding 700,000 metric tons.
“They told me we have got excellent iron ore, the best in the whole world, capable of making good steel up to 70 percent, but we have got a problem of charcoal to mix and make a final product,” Mr Museveni stated.
The President, who was accompanied by the First Lady also Minister of Education Janet Museveni, made the remarks on Saturday, March 1, 2025, while addressing a meeting of leaders from Ankole and Kigezi at Kyamate Secondary School in Ntungamo District as he concluded his performance assessment tour on the Parish Development Model (PDM) in the Ankole sub region.
Mr. Jateen Patel, Chief Executive Officer of Abyssinia Group, who attended as a special guest, informed President Museveni and the meeting that Abyssinia Group is looking for 10,000 acres of land, approximately 15 square miles, to plant trees and establish a factory to make industrial charcoal needed in the final production of steel.
“At the moment, we are transporting the iron ore from within this region, from Kabale, and predominantly this area, up to Jinja. What we would do is to manufacture industrial charcoal in a disciplined, organized way such that we can make liquid steel within this region,” Mr Patel said, adding that the idea is to generate employment for almost 1,500 people in direct employment, the biggest percentage from within the region, and with a turnover in excess of $300 million.
“The fast-growing trees are eucalyptus. So, the objective is a three-year cycle time to harvest these trees and generate the charcoal, which can then be used,” he emphasized.
“So that’s why I’ve called you,” Mr Museveni told the leaders, further proposing that Mr Patel’s land be identified on the bare hills within Ntungamo and Kigezi for the factory to plant trees.
“Now Patel, are you able to grow the trees you want on the bare hills here? Because the land in the lowlands is already occupied by people, but the hills are there,” President Museveni asked.
President Museveni has always highlighted the exceptional quality of Uganda’s iron ore, key in positioning the country as a potential global leader in the steel industry if more emphasis is placed on value addition.
The President’s proposal was also supported by the First Lady.
“I heard a rumor that this company particularly wanted to come to Ntungamo, and I knew very well that all the hills were bare. You know very well that when I was here in Ruhama, we were trying to plant trees on the hills, but we did not do a very good job because we did a very small percentage, not talking about Ntungamo in general. So, we have more than that amount of land that we are looking for on the hilltops; if they are willing to work to plant trees on the hilltops or work with communities to plant the trees on the hilltops in Ntungamo, I believe that the Ntungamo people would take up this challenge and do a good job,” Mrs Janet said.
Although Mr Patel had bought the idea, leaders in the region had a different view.
Dr. Charles Ngabirano from Rwampara informed President Museveni that the best idea would be partnering with the already existing trees out growers to sell mature trees to Mr Patel.
“I lead a group of farmers where we have 4000 hectares of planted mature trees. We also have many other out growers to ensure enough sustainable supply,” Dr. Ngabirano said, adding that the only gaps are the lack of expertise and advice about the types of trees that they should plant.
“We have too much stock, which is mature. Secondly, we would excel as leaders of this area if we established ourselves as well,” he added.
Ms Sophia Tukamushaba Kyomugasho also informed the President that they have the capacity to supply trees as a way of empowering them as wealth creators.
“If you allow them to come and grow by themselves, what shall we do?” She wondered.
President Museveni, who was happy to learn that the investor is comfortable with buying trees from out growers, tasked the NRM Vice Chairperson for the western region, also Minister of ICT and National Guidance, Dr. Chris Baryomunsi, to work with the First Lady, the Ministers of Trade, Francis Mwebesa and David Bahati, together with other key stakeholders, to conclude on the matter and report back in two months.
“This is really a zonal effort. The trees will come from the Kabale area, but also from Ntungamo, Isingiro, and Rwampara. So that’s why I called you—not to just throw this project on you,” the President stated.
Since Tuesday last week, President Museveni, accompanied by the First Lady, has been in the Ankole sub region on the assessment tour on wealth creation and PDM.
The Deputy Speaker of Parliament, Thomas Tayebwa; Dr. Chris Baryomunsi; and the Woman Member of Parliament for Ntungamo, Josyline Kamateneti, also addressed the meeting, which attracted attendance from ministers and Members of Parliament from Ankole and Kigezi, members of the NRM Central Executive Committee (CEC), Resident District Commissioners, LC 5 and NRM chairpersons, chief administrative officers (CAOs), youth leaders, and sub-county leaders.