Narendra Raval’s Devki begins $500M Ugandan steel plant

Kenyan industrial group Devki has broken ground on a $500 million steel plant in eastern Uganda that leaders say will create jobs and reduce reliance on imported steel.

Uganda President Yoweri Museveni and Kenya President William Ruto presided over the Nov. 23 ceremony in Kayoro village in Tororo District, near the Kenyan border. The project, branded Devki Mega Steel, is backed by Devki Group chairman Narendra Raval, officials said.

The plant is planned as a vertically integrated operation expected to produce up to 1 million tonnes of steel products a year. Government statements put employment at about 15,000 people at start-up in Tororo and Mbarara, with the workforce expected to reach about 20,000 by 2027 as mining, transport and related services expand. Backers say the first steel could roll out by 2027.

Museveni framed the investment as part of a push to keep more value from African minerals at home. “Once fully operational, we will take a step toward reversing the waste of African resources, whether human, mineral, jobs or foreign exchange,” he said.

Ruto called the factory a marker of deeper regional value chains and said it could help meet rising demand for construction materials. He cited projections that Africa’s steel demand could rise from about 39.5 million tonnes in 2024 to 52 million tonnes by 2034, and said local producers should capture more of that market.

Uganda has tightened its value-addition drive, including restrictions on exporting unprocessed minerals, and is courting manufacturers through industrial parks and investor support. The Uganda Investment Authority said Kampala and Devki signed a mineral development agreement on April 2, 2025, to guide the project.

Officials also point to the cost of imports. Ecofin Agency reported that Uganda loses about $5 billion a year because it depends on imported steel products, an outflow the Tororo facility is expected to shrink. Museveni has argued that imports of flat steel sheets and other intermediate products drain foreign exchange.

Museveni said Raval also plans a separate iron ore project in Kabale District that could add more than 16,000 jobs and supply inputs for the Tororo operation. He urged communities to avoid land compensation disputes that could slow construction and promised government support on required payments.

The launch comes as Uganda and Kenya discuss expanding transport links, including extending the Standard Gauge Railway toward Uganda and upgrading key trade corridors to lower costs for heavy industry.