Omanghana
Several African countries are positioning themselves to benefit from the rapidly growing global iron ore market, which is projected to reach about $425 billion by 2034. Governments across the continent are increasingly focusing on processing iron ore locally instead of exporting it in raw form, to build domestic steel industries, strengthen local value chains, and reduce dependence on volatile commodity prices.
In Guinea, the massive Simandou iron ore project has moved into the production phase. The project, valued at around $20 billion, includes the construction of a 670-kilometre railway and a deep-water port designed to transport iron ore from what is considered one of the world’s largest high-grade deposits.
The Democratic Republic of the Congo is also pursuing an ambitious strategy to convert its largely untapped iron reserves into finished steel products. Authorities are working on plans for a $28 billion special economic zone dedicated to industrial processing and steel production.
In South Africa, the government is seeking approximately R2 trillion, or about $125 billion, in new investments over the next five years for critical minerals and related industries. Part of the strategy includes stabilizing major steel producers such as ArcelorMittal and strengthening the country’s mining and manufacturing sectors.
Meanwhile, Liberia and Gabon are advancing major mining projects to increase iron ore production. Liberia is aiming to triple its annual output to between 25 and 30 million tonnes, while Gabon’s Baniaka iron ore project is expected to begin production around 2026.
Analysts say that with global demand for iron and steel continuing to rise, Africa’s iron ore output could exceed 200 million tonnes per year by the 2030s.
Financial institutions are also supporting the push for industrial expansion. The Africa Finance Corporation has been actively backing infrastructure and resource development projects across the continent. However, experts note that the success of these plans will depend on major investments in transportation infrastructure, reliable energy supplies, and clearer regulatory frameworks to attract long-term investment.
Source: Omanghana
