Africa's Iron Ore Growth Must Align with Steelmaking Strategy for Industrial Resilience
Africa's iron ore production has recovered to around 100 million tonnes annually and could exceed 200 million tonnes by the early 2030s, driven by projects like Simandou in Guinea. However, steel production has only modestly increased from 15 million tonnes in 2014 to 26 million tonnes in 2024. The continent's steel industry is fragmented and relies heavily on electric arc furnace technology. There is a pressing need for a coordinated regional strategy to boost domestic steelmaking, which is vital for infrastructure and manufacturing, amid rising demand and significant mineral reserves.
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Africa's iron ore production is projected to surpass 200 million tonnes annually by the early 2030s, primarily due to the Simandou project in Guinea. Despite this growth, steel production has only increased from 15 million tonnes in 2014 to just over 26 million tonnes in 2024, with a reliance on electric arc furnace technology.
The continent imports significant quantities of finished steel while possessing essential resources for primary steelmaking. A coordinated regional strategy under the AfCFTA is essential to aggregate demand and enhance primary steel production. Strengthening regional infrastructure and market integration is critical for establishing a competitive steel industry that supports the continent's industrial ambitions.
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