In recent years, the Ugandan government has implemented a series of measures to promote the development of the steel industry. For example, to achieve the Vision 2040 Development Strategy (Vision 2040, hereinafter referred to as Vision 2040), “GDP (GDP) reached US$580.5 billion by 2040, and per capita national income reached US$9,500, becoming a middle-income country” The goal is to develop a National Development Plan (NDP) in Uganda. It plans to accelerate the industrialization process by implementing six five-year NDPs and build an industrial system with an “economic lifeline”, accounting for 7% of GDP in GDP. Increased to 31% (the East African Community average of 10%), the second NDP (2016 ~ 2020) is nearing completion. Promoting the development of the steel industry has played an important role in this plan.

However, as of now, Uganda's steel industry is still in its infancy. There are only a few small and medium-sized electric furnace steelmaking enterprises in China. The shortage of scrap steel materials, backward technology, and the lack of necessary skills training for employees seriously restrict Uganda's steel production efficiency and production capacity. Utilization, product diversity and long-term development of steel companies. Due to the lack of strict control of product quality, Uganda steel enterprises can not fully meet the requirements of local infrastructure construction.

In order to help Uganda's infrastructure construction and promote the development of its steel industry, China continues to provide financial support. Some Chinese steel companies are actively pursuing international capacity cooperation in Uganda and investing in local factories with the help of the “Belt and Road” initiative. Statistics from the Uganda Investment Authority show that China is currently the first source of investment in Uganda. In FY 2018, investment from China accounted for 40% of all Ugandan foreign direct investment. At present, a series of infrastructure construction projects are in full swing.