Museveni Commissions $300M Clinker Cement Factory in Karamoja, Bans Tax on Raw Materials

President Yoweri Kaguta Museveni commissioned a 300 million US dollar clinker cement factory in Nadunget Sub-county, Moroto District, marking a major milestone in Uganda’s industrialisation drive.

The Yaobai Cement Factory, now operational in the Karamoja Sub-region, is producing 6,000 tonnes of clinker daily in its first phase.

The plant manufactures both composite and ordinary Portland cement, widely used in infrastructure projects such as bridges, highways, railways, and residential construction.

President Museveni noted that the establishment of a domestic clinker factory will save Uganda approximately 260 million US dollars previously spent on imports of clinker, a key raw material in cement production.

He commended Chinese investors for their continued commitment, describing them as reliable partners in advancing Uganda’s mineral value addition and industrial growth.

The President also emphasized the government’s 10-year tax exemption policy for foreign investors and cautioned tax enforcement officers against violating the directive.

Museveni expressed optimism about Karamoja’s economic future, citing vast untapped mineral resources, including large limestone deposits that could support additional cement factories.

He called for sustainable mineral exploitation to ensure direct benefits for local communities and long-term socio-economic transformation.

He further highlighted key infrastructure projects nearing completion, including the Moroto–Kotido road, Kotido–Kabong road, and Mbale–Namalu road, as part of efforts to unlock the region’s economic potential.

Former Ethiopian Prime Minister Hailemariam Desalegn Boshe, now Africa Regional Ambassador of West China Cement, underscored the importance of China-Africa partnerships in driving development and economic transformation.

Zang Jiewen, Board Chairperson of West China Cement, confirmed the availability of high-quality raw materials in Uganda, positioning the factory to produce high-grade cement for both local and export markets.

Vice President Jessica Alupo urged residents of Karamoja to embrace development initiatives, protect government investments, and actively participate in wealth creation programs.

Energy and Mineral Development Minister Ruth Nankabirwa noted that Uganda’s cement production capacity has significantly improved, reducing the country’s reliance on imports and strengthening its balance of payments.

Karamoja Affairs Minister Peter Lokeris said the region is witnessing tangible transformation through industrialisation, supported by expanded electricity access and investment in manufacturing.

Local leaders, including Moroto District LC5 Chairperson Koryang David, described the development as a game changer for Karamoja, praising government efforts to integrate the region into the national development agenda.