Kampala, Uganda | URN | State Minister of Finance Henry Musasizi has issued a stern warning against any acts of sabotage targeting the anticipated iron ore factory in Rubanda District.
Musasizi, who also serves as the Member of Parliament for Rubanda East, made the statements following reports of a fierce dispute between two local factions over ownership of the 52 acres of land allocated for the factory that is expected to create over 15,000 jobs.
The contested land in Murukoro Cell, Nyakabungo Ward, Rubanda Town Council, about 31 kilometers from Kabale Municipality along the Kabale-Kisoro Road.
The primary conflict is between two pastoralist and farmer associations claiming historical rights to the land and associated compensation funds. Over 250 local residents, who argue that their ancestors settled, farmed, and grazed on this land, assert that outsiders have moved in to hijack the compensation process.Much of the land was historically used under customary tenure, which means it lacks formal registration.
This has led long-term users to compete for ownership rights after they found out that the Government’s plan for the land had increased its value. Despite these disputes, Musasizi warned that district leadership would not allow the conflicts to delay establishment of the factory.
This project was one of the key promises made by President Yoweri Museveni during his re-election campaigns last year. Speaking at a campaign rally at Kabirizi Playground on November 24, 2025, Museveni said the government would establish a factory to process the iron ore mined in Rubanda, aiming to generate more jobs and add value to the mineral, which was previously exported raw. He tasked the district leadership with identifying suitable land for the project.
“We have already secured an investor to establish the factory, and this time, we will not allow anyone or anything to stand in the way,” Musasizi said during the swearing-in of Rubanda District Councilors on May 22, 2026.He asked those with grievances to sort them with relevant the District Local Government Offices.
Musasizi also revealed that the government had already designed a compensation plan for affected landowners, with a government land valuer dispatched to assess the scope of compensation. He urged the Rubanda District Local Government to ensure that the rightful owners of Murukoro land are properly listed for compensation. However, he emphasized that no one would impede the factory’s establishment.
”I will.personally ensure that the rightful owners are compensated,” he added.
In his swearing-in speech, Rubanda District LC.5 Chairperson Ampeire Stephen Kasyaba described the iron ore factory as a critical project capable of addressing the high unemployment rates in the district and the greater Kabale region, providing over 15,000 direct and indirect jobs.
According to the Ministry of Energy and Mineral development, Rubanda District contains some of the world’s highest-grade hematite iron ore, with grades ranging from 55% to 68% iron content, an exceptionally lucrative range suitable for direct feed processing. Estimates suggest that the Kigezi Sub-region, particularly Rubanda, Kabale and Kisoro area holds iron ore reserves between 30 and 50 million tonnes. A Presidential directive maintains a strict ban on exporting unprocessed raw iron ore.
However, plans to establish a large-scale steel smelting plant within Rubanda have faced official hurdles and pivots. Primary reasons cited for not building the plant in Rubanda included power infrastructure limitations, as steel production required stable, high-voltage supply, (at least 132 K.V and over 100 megawatts).
Besides, lack of a reliable reducing agent like natural gas, has been an obstacle. Experts ruled that natural gas could not be safely supplied to Rubanda until oil and gas pipelines from the Albertine Rift region were operational.
Consequently, the government shifted focus to Tororo District in Eastern Uganda, which already possessed established industrial parks, robust railway and transportation networks, and easier access to regional markets. The ground breaking ceremony for the $500 million Devki Mega Steel Plant in Tororo last year, marked Uganda’s move towards this new strategy, with the plant serving as the country’s primary steel smelting site.
However, Government clarified that Rubanda has not been entirely left out of the plan. Instead of a massive, full-scale smelting plant, the updated strategy involves establishing a facility in Rubanda for initial extraction, crushing, and refining of the ore into a high-purity concentrate. This concentrate will then be transported to specialized facilities such as the Tororo Mega Plant or the pig iron plant in Ntungamo for final steel production.
Part of the initial moves made to achieve the target involved establishment of the $83.75 million Mirama-Kabale 132kV Power Substation in Hamurwa Subcounty, Rubanda District. The substation was commissioned on February 12, 2025 by President Museveni, to provide bulk, stable electricity, replacing an older 33kV line that was previously insufficient for heavy industries.
