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In March 2026, Africa stated that it has made robust investments in the iron ore industry and is expected to boost domestic steelmaking to establish a more resilient and competitive industrial base. It is experiencing a new phase of growth that will be structural, and it depends on approved and long-term investment plans and mine development projects across Africa.
By the early 2030s, research suggests that African output could increase by 200 million tonnes annually. This will be driven by ramping up the Simandou project in Guinea to around 120 million tonnes per year, along with production growth in Liberia, Sierra Leone, Algeria, Mauritania, and other Guinean projects.
With the accelerating iron ore supply in Africa, the production of steel depends on heating iron ore and adding carbon. This growth is seen at a modest pace, from around 15 million tonnes in 2014 to just over 26 million tonnes in 2024. The CRU Group reported that most of this production relies on electric arc furnace technology. This technology uses scrap metal and leads to primary and integrated ore-based steelmaking. This process remains geographically fragmented and limited in Africa.
On the other hand, Electric Arc Furnace (EAF)-based steel production operates on a smaller scale and needs lower upfront capital. It has a lower carbon footprint and uses high-power electricity to melt recycled steel scrap and/or Direct Reduced Iron. It adapts more easily to volatile and fragmented demand. Electric Arc Furnace (EAF)-based steel production allows manufacturers to supply steel products without facing the expense of integrated manufacturing complexes. This model holds huge potential to address immediate demand gaps. It is not limited to establishing a regionally integrated, durable industrial base.
According to Towards Chem&Materials, the global iron and steel market is projected to grow from USD 1.83 trillion in 2025 to USD 2.95 trillion by 2035, growing at a compound annual growth rate (CAGR) of 4.85% over the forecast period from 2026 to 2035.
Africa possesses well-established capital for competitive steelmaking, and it takes huge efforts on it. The industrial base covers nickel and chromium reserves, high-grade iron ore, manganese, natural gas, and massively expanding hydropower and renewable energy potential. Steel demand is also surging in mining corridors, rail networks, housing, energy infrastructure, and manufacturing. This noticeable demand is fragmented by borders, procurement systems, policy reforms, and financing structures. There is no single national market to anchor full-scale integrated production on its own. It raises the urgent need for regional coordination.
Steel remains the backbone of infrastructure, a prerequisite for industrial scale, and the anchor of multiple mineral value chains. Africa’s iron ore growth must be aligned with power, ore, transport, and procurement under a coherent steel strategy. It is projected that Africa holds great potential to build a resilient and more competitive industrial base.
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