Moroto, Uganda: President Yoweri Kaguta Museveni Friday commissioned the $300 million Yaobai Clinker Cement Factory in Moroto District, marking a major milestone in Uganda’s drive toward industrialisation and import substitution.
Speaking at the launch in Karamoja, Mr Museveni hailed the investment by Chinese partners, including Chairman Paul Zhang and a consortium of West China companies, as a critical step in strengthening Uganda’s manufacturing base.
The President noted that the plant is already producing up to 85 percent clinker, an essential intermediate product in cement production, significantly reducing Uganda’s dependence on imports.
“This investment will save the country money and reduce ‘kushaka’,” Museveni said, referring to inefficiencies and avoidable costs in the production chain.
He emphasised that clinker, as a key industrial input, should not be subjected to unnecessary taxation and pledged to investigate reports of levies affecting manufacturers.
Representing the Chinese government, Fan Xuecheng said the factory’s first phase has the capacity to produce 6,000 tonnes of clinker per day using environmentally friendly, world-class technology.
“Not only will it reduce foreign exchange expenditure on clinker imports, but it will also generate foreign exchange through exports, supporting Uganda’s economic development,” he said.
Energy Minister Ruth Nankabirwa noted that Uganda’s cement production capacity has grown significantly, from 600,000 tonnes in 1986 to about 9 million tonnes annually today across five factories.
She said the Moroto plant will further strengthen supply as demand rises locally and across the region.
The project’s local partner, Ambrose Byoona, said the factory was inspired by Museveni’s long-standing vision to establish clinker production in Karamoja, while Moroto LCV Chairperson Anjello Pulkol credited improved security in the region for enabling such investments.
Project Chairman Zang Jiewen revealed that the plant is expected to produce up to 2 million tonnes of clinker and 3 million tonnes of cement annually, generating about $300 million in output value.
He added that the factory will create more than 3,500 jobs at full capacity and save Uganda an estimated $200 million annually in clinker import costs.
Beyond domestic supply, the plant is expected to serve regional markets including South Sudan, western Kenya, and the Democratic Republic of Congo, strengthening East Africa’s construction supply chain.
The commissioning ceremony was also attended by former Ethiopian Prime Minister Hailemariam Desalegn, whose presence Museveni described as a sign of strengthening regional cooperation.
Moroto-based factory is expected to lower construction costs, boost local industry, and drive economic transformation in Karamoja, one of Uganda’s historically underdeveloped regions.
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