Guinea, Liberia and the Democratic Republic of the Congo are among the countries in Africa whose governments are ramping up iron investments this year to revive domestic steel industries and reduce reliance on imported construction materials.
It’s a strategic move to boost industrialisation and infrastructure growth. The shift comes as global demand for iron ore continues to rise. The market is projected to grow from about $313-billion in 2026 to roughly $425-billion by 2034, driven largely by infrastructure expansion and demand from the construction and automotive sectors, according to projections cited by Energy Capital & Power.
Iron ore has been identified by the Africa Finance Corporation (AFC) as a strategic resource, critical for advancing the continent’s industrialisation goals.
Africa holds a large share of the world’s untapped resources. According to the Africa Finance Corporation, the continent has an estimated $8.6-trillion in undeveloped mineral wealth, with iron ore now emerging as a strategic resource for building domestic steel and construction industries.
The corporation estimates Africa’s total mine-site mineral value at about $29.5-trillion, representing roughly 20% of global mineral wealth. Yet, much of that value remains locked at the extraction stage.
According to the Africa Finance Corporation, minerals generate far greater economic returns when processed into industrial products such as steel, aluminium and alloys rather than exported in raw form.
“Mine-site values significantly understate Africa’s true potential,” the corporation said in its 2026 Compendium of Africa’s Strategic Minerals, noting that value expands dramatically when minerals are processed closer to where they are ultimately used.
Among the projects drawing global attention is the vast Simandou iron-ore deposit in Guinea, widely considered the world’s largest untapped high-grade iron-ore reserve.
The project is expected to produce up to 120-million tonnes of iron ore annually once fully operational, according to project estimates cited by companies
involved in the development.
Global steel producers are already moving to secure supplies from the deposit. Among them is China Baowu Steel Group, the world’s largest steelmaker, which has expanded its participation in the project as Chinese manufacturers seek long-term access to high-grade ore.
Guinea is also positioning Simandou as the cornerstone of a broader economic transformation strategy. The government’s Simandou 2040 development programme includes 122 priority projects across infrastructure, agriculture, education and healthcare, according to national planning documents. Officials say the aim is to use mining investment to stimulate wider industrial development.
Elsewhere in West Africa, iron-ore production is also expanding in Liberia. The country expects output to reach between 25-million and 30-million tonnes annually once current mining projects reach full capacity. According to Liberia’s Ministry of Mines and Energy. Expansion projects led by ArcelorMittal and other operators are driving the increase. Companies including Cavalla Resources, Westcrest, Zodiac Exploration and Bao Chico Resources are also developing or exploring iron-ore deposits across the country.
Many economies on the continent export raw materials but import finished steel products used in construction, transport infrastructure and manufacturing. That imbalance has renewed calls for stronger mineral beneficiation and domestic processing industries. According to the Africa Finance Corporation, the steel value chain illustrates one of the clearest examples of this disconnect.
Africa holds world-class reserves of iron ore and key steelmaking inputs such as manganese, chromium and nickel, yet the continent remains heavily dependent on imports of finished steel products. The report notes that African mineral supply chains are often tied more closely to demand cycles in Asia than to the continent’s own infrastructure needs.
This exposure has become more visible in recent years as slower construction activity in Asia, particularly in China’s property sector, has weakened demand for steel inputs exported from Africa.
At the same time, African economies continue to expand roads, railways, housing and energy infrastructure that require large volumes of steel.
For policymakers, this mismatch highlights the importance of aligning mineral extraction, processing capacity and industrial demand.
“The constraint is not a lack of resources,” according to Samaila Zubairu, president and chief executive officer of the Africa Finance Corporation.
“The challenge is aligning mineral production, infrastructure investment and processing capacity around Africa’s long-term demand fundamentals.”
In South Africa, one of the continent’s most industrialised economies, policymakers are also seeking to revive mining investment.
President Cyril Ramaphosa said during the country’s State of the Nation Address earlier this year that the government aims to attract about R2-trillion in mining investment over the next five years.
“Our iron-ore reserves are valued at more than R40-trillion, making mining a sunrise industry,” Ramaphosa said.
“After many years of declining investment in exploration, we are dedicating funds to geological mapping and exploration to harness our critical mineral reserves.”
Despite large iron-ore reserves, Africa’s steel production has grown only modestly.
Output increased from about 15-million tonnes in 2014 to just over 26-million tonnes in 2024, according to data compiled by the World Steel Association and industry analysis by CRU Group. – Bird Story Agency
