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The governments of many African countries, including Guinea, Liberia and the Democratic Republic of the Congo, are ramping up iron investments to revive domestic steel industries and reduce reliance on imported construction materials.
The Africa Finance Corporation (AFC) has identified iron ore as a strategic resource, critical for advancing Africa’s industrialisation goals. Africa holds an estimated US$8.6 trillion in undeveloped mineral wealth, with iron ore now emerging as a strategic resource for building domestic steel and construction industries.
The market is projected to grow from about US$313 billion in 2026 to roughly US$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.
Still, 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, aluminum and alloys rather than exported in raw form.
The vast Simandou iron ore deposit in Guinea, widely considered the world’s largest untapped high-grade iron ore reserve, is among the projects drawing global attention. According to project estimates cited by companies involved in the development, the project is expected to produce up to 120 million tonnes of iron ore annually once fully operational,
Bird reported that 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.
In Guinea, the government is positioning Simandou as the cornerstone of a broader economic transformation strategy. The Simandou 2040 development programme includes 122 priority projects across infrastructure, agriculture, education and healthcare, according to national planning documents.
Iron ore is also expanding in Liberia, a West African country. Liberia’s Ministry of Mines and Energy says it expects output to reach between 25 million and 30 million tonnes annually once current mining projects reach full capacity, according to Expansion projects led by ArcelorMittal and other operators are driving the increase.
The continent 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.
Many African countries export raw materials extracted from African soil but import finished steel products used in construction, transport infrastructure, and manufacturing. Experts have called for stronger mineral beneficiation and domestic processing industries to address the imbalance.
The President and Chief Executive Officer of the Africa Finance Corporation, Samaila Zubairu, told Bird that the constraint is not a lack of resources, but aligning mineral production, infrastructure investment and processing capacity around Africa’s long-term demand fundamentals.
South African policymakers are also seeking to rejuvenate mining investment in the country. President Cyril Ramaphosa said during the country’s State of the Nation Address earlier in 2026 that the government aims to attract about R2 trillion (more than US$117 billion) in mining investment over the next five years.
“Our iron ore reserves are valued at more than R40 trillion, making mining a sunrise industry.After many years of declining investment in exploration, we are dedicating funds to geological mapping and exploration to harness our critical mineral reserves,” said Ramaphosa.
In the Democratic Republic of the Congo (DRC), authorities are exploring the potential of iron ore alongside the country’s dominant copper and cobalt sectors. DRC Officials estimate that the country holds roughly US$24 trillion in untapped mineral resources, according to the Ministry of Mines.
Yet, much of that demand is currently met through imports. International trade data show that African countries import large volumes of finished steel from major producers, including China, India, and Turkey.
Africa exports iron ore and other steelmaking inputs, but imports the finished products used in construction, transport infrastructure and manufacturing. When African countries import steel, they often import products made from minerals originally mined on the continent, including manganese from Gabon and South Africa, chromium from Zimbabwe, and nickel from Madagascar, according to an analysis by the Africa Finance Corporation. Despite large iron ore reserves, Africa’s steel production has grown only modestly.
Bonface Orucho, Bird Story Agency.
