Metro Cement expands Uganda production as UAE investment nears $3.5 billion

Metro Cement has unveiled an expanded production line in Kampala, marking a significant step in the growing economic partnership between Uganda and the United Arab Emirates.

The expansion, announced at an event attended by diplomats and government officials, comes as foreign direct investment from the UAE to Uganda reaches $3.5bn, up from $300m in 2018.

Milly Babirye Babalanda, the minister for the presidency, said the investment reflected growing international confidence in the country’s stability.

The Dubai-backed firm, which established its Ugandan operations in 2019, has installed automated systems and advanced milling technology at its Mbale-based plant. Company executives said the upgrades are specifically designed to process local raw materials for the domestic housing and infrastructure sectors.

“This investment is about quality, efficiency and supporting Uganda’s development agenda,” said Shamil Razack, the group director.

The UAE recently overtook other nations to become Uganda’s primary export destination. Last year, Uganda exported goods worth $1.3bn to the Emirates.

Zaake Wanume Kibedi, Uganda’s ambassador to the UAE, said the expansion of the cement factory is expected to triple its current workforce.

The Uganda Investment Authority has urged the company to look beyond domestic borders. Robert Mukiza, the authority’s director general, said the firm should use its Ugandan base to target the wider East African market, which consists of some 300 million people.

Metro Cement plans to formally commission the new facility in Mbale later this year.