Roofings Group has commissioned a $125 million cold rolling complex in Namanve, marking a significant expansion of Uganda’s steel production capacity and a strategic shift toward domestic iron ore mining.
The facility was officially opened by President Yoweri Museveni, who noted that the investment aligns with the government’s broader agenda to transition Uganda from a primary commodity exporter to an industrialised economy.
The new complex allows the company to produce high-quality cold-rolled steel, a process that involves further processing hot-rolled steel to produce thinner, stronger, and more precise sheets. These materials are essential for the automotive, appliance, and construction sectors, reducing the region’s reliance on expensive imports of finished steel products.
Sikander Lalani, the founder and chairman of Roofings Group, stated that the investment is part of a long-term vision to integrate the company’s operations. By expanding its manufacturing capabilities, the group aims to lower the cost of construction materials within East Africa.
The $125 million expenditure covers the installation of advanced machinery and infrastructure designed to increase the group’s output and improve the technical specifications of its steel products to meet international standards.
Reducing Reliance on Imported Raw Materials
Beyond the new mill, Roofings Group has announced a strategic move into the mining and processing of Ugandan iron ore. This transition toward backward integration is intended to secure the company’s raw material supply and insulate it from the volatility of global steel billet prices.
Historically, many steel manufacturers in East Africa have relied on the import of steel billets and scrap metal. By mining iron ore domestically, the Roofings Group intends to create a fully integrated value chain, from the extraction of minerals to the production of finished steel goods.
The Ugandan government has previously highlighted the country’s significant untapped mineral deposits. The Ministry of Energy and Mineral Development has encouraged private sector investment in mining to drive local value addition and increase foreign exchange earnings.
Industry analysts suggest that this move could provide a blueprint for other manufacturers in the region to reduce their exposure to currency fluctuations and shipping disruptions, which have plagued the East African construction industry in recent years.
The expansion is expected to create hundreds of direct and indirect jobs, ranging from technical engineering roles at the Namanve plant to operational positions at future mining sites. The company said the expansion would enhance the skills of the local workforce through the adoption of new technologies in metallurgy.
The development comes at a time when the African Continental Free Trade Area (AfCFTA) is beginning to influence trade patterns, allowing Ugandan manufacturers to potentially export higher-value steel products to neighbouring markets with fewer tariffs.
The next phase of the group’s strategy involves the formal acquisition and development of iron ore concessions. Roofings Group is expected to begin the geological surveying and extraction process to feed the Namanve complex with domestic ore, further reducing the unit cost of production.
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