President Yoweri Kaguta 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,” H.E. Museveni said.
The President, who was accompanied by the First Lady also Minister of Education and Sports, Maama Janet Museveni, made the remarks on Saturday, March 1, 2025, while addressing a meeting of leaders from Ankole and Kigezi held at Kyamate Secondary School in Ntungamo as he concluded his performance assessment tour on the Parish Development Model (PDM) in the Ankole subregion.
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%, but we have got a problem of charcoal to mix and make a final product,” President Museveni stated.
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 current moment, we are transporting the iron ore from within this region, from Kabale, and predominantly this area, up to Jinja, and that is the direction we’re taking at the moment. 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 1500 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,” H.E. 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,” Maama 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 him mature trees.
“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 outgrowers, 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, Hon. Francis Mwebesa and Hon. 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.
Regarding the issue of wealth creation, President Museveni urged the people of Ntungamo to focus on the main issue of fighting poverty in their households through wealth creation, which is done via commercial agriculture, manufacturing, services, and ICT.
He said whereas development that benefits all is also important, many in developed areas with amenities such as tarmac roads and electricity are still poor with no household incomes.
He gave an example of the road from Kampala via Masaka to Kabale that has been tarmacked since 1963 after independence, yet many people alongside it are poor.
“For the last 60 years, that road has been tarmacked, but when you go there, you’ll still find poor people. The tarmac road is there, but also the poor people (Korasi eri aha, abooro bari aha),” he said.
“Kampala is full of good tarmac roads and flyovers, but also poor people without anything to eat are very many there,” President Museveni added.
He gave examples of the successful beneficiaries of the Parish Development Model (PDM), such as Mrs. Tumusiime Deziranta of Rubirizi district and Apio Vicky of Lira, who in their entire lives had never held Shs. 1 million, until they benefited from the PDM funds.
The PDM, which was launched in 2022, aims at improving service delivery and household incomes through supporting Ugandans directly through their parish Saccos.
Each Sacco receives Shs. 100 million every financial year, which is given to 100 households (each receiving Shs. 1 million) to invest and improve their incomes.
Regarding the challenge of accessing affordable animal feeds, President Museveni promised to follow up with the National Enterprise Corporation (NEC), an army commercial arm, tasked with making animal feeds for chickens, pigs, and fish.
The President also underscored the importance of irrigation;- using water from swamps to ensure sustainable production rather than misusing the swamps to grow crops such as rice and cabbages.
“Dr. Muranga, who irrigates her banana plantation, harvests 53 tons of bananas per acre, while you, the Banyankore, are getting 5 tons per year. You find that you’re misusing the wetland but then also underutilizing the dry land,” H.E. Museveni explained.
Since Tuesday this week, President Museveni, accompanied by the First Lady, has been in the Ankole subregion on the assessment tour on wealth creation and PDM.
The Deputy Speaker of Parliament, Rt. Hon. Thomas Tayebwa; Dr. Chris Baryomunsi; and the Woman Member of Parliament for Ntungamo, Hon. 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.
