Uganda targets regional cement market with new $300 million facility

MOROTO, Uganda — A new $300 million cement facility commissioned by President Yoweri Museveni is expected to position Uganda as a major exporter of construction materials to South Sudan, western Kenya and the Democratic Republic of Congo.

The Yaobai Cement plant in the Nanduget area of Moroto District was officially opened Monday, marking a strategic shift in the East African supply chain. While the facility aims to satisfy domestic demand, West China Cement Chairman Zang Jiewen said the plant’s capacity is designed to serve the broader regional market.

Once fully operational, the project is expected to produce 3 million tonnes of cement and 2 million tonnes of clinker annually. Clinker is the primary raw material used in cement production, and the ability to manufacture it locally is expected to save Uganda $200 million in foreign exchange each year.

Museveni, who was joined by former Ethiopian Prime Minister Hailemariam Desalegn Boshe, said the investment aligns with national goals to transform the Karamoja region into an industrial hub. The president noted that domestic production of clinker, which makes up about 85% of cement, will eliminate the need for costly imports from outside the continent.

The facility represents a significant expansion of Uganda’s industrial base. Regional integration remains a core goal for the project, which officials say will strengthen trade ties with neighboring countries while creating approximately 3,500 jobs for Ugandans.

Energy Minister Ruth Nankabirwa said the transformation of Karamoja from a conflict-prone area to an industrial center is key to meeting Uganda’s economic targets. She credited improved infrastructure for making the region accessible to large-scale international investors.

The project was supported by the Chinese government, which has encouraged its citizens to invest in African manufacturing. Fan Xuecheng, the charge d’affaires of the Chinese Embassy in Uganda, said such partnerships continue to yield tangible development outcomes for both nations.

West China Cement officials stated the plant will utilize modern, low-emission technology to ensure the regional export drive remains environmentally sustainable.