Uganda's Finance Minister Henry Musasizi has pledged government action to address infrastructure, tax and trade-related challenges affecting manufacturers at Namanve Industrial Park following a working visit to Steel & Tube Industries Ltd.

Musasizi made the commitment during a visit to the steel manufacturer, where he assessed challenges affecting production, investment and job creation.

He was accompanied by Minister of State for Investment Aminah Mukalazi, Uganda Investment Authority (UIA) Director General Chris Mukiza and a Ministry of Finance, Planning and Economic Development technical team led by Deputy Secretary to the Treasury Patrick Ocilap.

The engagement focused on finding practical solutions to bottlenecks raised by the company and improving the environment for manufacturing and investment.

During a tour of the Steel & Tube facility, Musasizi observed persistent flooding at the plant.

According to the Ministry of Finance, the flooding has been attributed to incomplete backfilling, outstanding civil works and inadequate drainage around the facility.

With the September rains approaching, the minister said the outstanding infrastructure works need to be completed urgently.

The concern highlights the continuing importance of infrastructure at Namanve Industrial Park, where inadequate infrastructure has previously been identified as one of the major challenges facing investors. UIA has described infrastructure development as critical to the park's ability to support industrialisation, job creation and exports.

Steel & Tube Chairman Joseph Yiga also raised concerns over a delayed income tax refund from the Uganda Revenue Authority (URA), which he said amounts to Shs14.6 billion.

According to Yiga, the delay is affecting the company's plans for a proposed US$255 million integrated steel project at Nshaara Ranch.

The issue places tax administration alongside infrastructure as a key concern for the manufacturer as it considers further investment in Uganda's steel industry.

Government records have previously documented tax-related obligations involving Steel & Tube, underscoring the importance of timely resolution of tax matters between the company and government agencies.

Steel & Tube also raised concerns about restrictions affecting stainless-steel scrap exports.

The company further called for harmonised tariff treatment for trailer assembly kits, arguing that such measures would support local manufacturing.

The concerns form part of a broader discussion about how trade and tax policies can either support or constrain domestic manufacturers seeking to expand production and add value locally.

Musasizi assured the company that government, working with the relevant agencies, would address the bottlenecks identified during the engagement.

He also emphasised the need for stronger field-based engagement between government and investors so that challenges affecting businesses can be identified and resolved more quickly.

Steel & Tube is a Ugandan manufacturer of steel products for construction and building projects. The company operates its factory in Namanve Industrial Area and produces products including steel bars, hollow sections, wire products, roofing products, stainless-steel tanks and steel plates.

The company established its Namanve manufacturing plant in 2016 and says its wider production capacity has expanded significantly over the years. Its own corporate history records an installed capacity of 360,000 metric tonnes following expansions in 2017.

Steel & Tube's activities also have an import-substitution dimension. Uganda Development Bank says financing for the company's Namanve profiling plant was intended to increase the supply of locally manufactured steel products, while the project created more than 100 jobs and contributed additional tax revenue.

The company has also described continued investment in manufacturing, including a wire rod mill production line and a pre-engineered structural division.

Musasizi said resolving the bottlenecks affecting manufacturers will strengthen Uganda's manufacturing sector, promote local value addition, attract investment and create more employment opportunities.

The Namanve engagement therefore goes beyond the immediate concerns raised by Steel & Tube. It reflects the government's effort to address practical obstacles facing investors on the ground while encouraging expansion of domestic manufacturing.

For Steel & Tube, the resolution of the flooding problem, the tax refund issue and the trade-related concerns could have implications for its existing operations as well as its proposed investment plans.

Government agencies are now expected to work with the company on the identified issues and pursue practical solutions.