Global demand for iron ore continues to rise as African governments and development finance institutions step up efforts to convert Africa’s vast iron ore reserves into domestic steel production and broader industrial growth.
African governments are accelerating efforts to convert vast iron ore reserves into domestic steel production. The move comes as global demand for iron ore and steel continues to rise, creating new investment opportunities. Countries such as South Africa, the Democratic Republic of the Congo and Guinea are launching large-scale projects to expand production and processing capacity. Industry leaders say developing local value chains could help Africa capture more value from its estimated $8.6 trillion in untapped mineral resources.
The move comes as the global iron ore market is projected to expand from approximately $313 billion in 2026 to $425 billion by 2034, driven primarily by infrastructure development, urbanization and construction demand around the world. Industry leaders say Africa has the potential to capture much more value from the sector by moving beyond exporting raw ore and investing in local processing and manufacturing.
The continent is entering a new period of investment and exploration that could reshape the role of African mineral resources in global supply chains, according to organizers of Africa Mining Week 2026.
In a statement ahead of the event, Energy Capital & Power said there were “significant growth opportunities” in Africa’s iron ore industry as exploration campaigns expand and global demand rises.
“With capital investment increasing across the sector, Africa has a unique opportunity to transform its iron ore resources into a catalyst for sustainable economic growth, and countries are already responding to this call,” the group said.
The shift towards value addition has also been highlighted by the African Finance Corporation, which has identified iron ore as one of the continent’s strategic minerals that can support domestic manufacturing and regional industrialization.
South Africa, Democratic Republic of the Congo and Guinea launch major mining and steel initiatives
Development finance institutions estimate that Africa has approximately $8.6 trillion in untapped mineral resources. The report argues that building local steel and manufacturing industries around iron ore can protect African economies from volatile commodity markets while strengthening industrial supply chains.
Across the continent, governments are beginning to align policy with their strategies.
In South Africa, iron ore is at the center of the country’s major mineral expansion plans. President Cyril Ramaphosa told parliament earlier this year that the country aims to attract about R2 trillion (approximately $125 billion) in new mining investment over the next five years.
Ramaphosa also said South Africa’s iron ore reserves are valued at more than R40 trillion (about $2.5 trillion) and pledged to increase funding for geological mapping and exploration to attract more investors.
Elsewhere, the Democratic Republic of the Congo has prioritized iron ore development as part of a broader strategy to unlock its vast mineral wealth.
Mines Minister Louis Watum Kabamba has promoted plans for a $28 billion special economic zone dedicated to processing iron ore into steel. The minister said the country’s estimated 20 billion tonnes of iron ore could help supply steel across Africa’s growing infrastructure and manufacturing industries.
Infrastructure, investment and governance are key to driving Africa’s iron ore industrialization
In Guinea, attention is focused on the massive Simandou project, widely regarded as the world’s largest undeveloped iron ore deposit. The government has positioned the development as a cornerstone of its Simandou 2040 strategy to diversify the economy through mining-led growth.
The initiative plans to direct mining proceeds to more than 120 priority projects spanning infrastructure, healthcare, education and agriculture.
Small-scale producers are also expanding production. Liberia expects iron ore production to triple this year as new and expansion projects come online, including operations by ArcelorMittal’s Liberia unit and other emerging producers. Government estimates suggest that domestic production could reach 25 million to 30 million tons per year once all projects are operational.
Industry analysts say the current wave of investment reflects lessons learned from past commodity booms, when much of Africa’s mineral wealth was exported in its raw form, with limited domestic economic returns.
Policy makers are increasingly focusing on infrastructure development, skills training and downstream processing capabilities such as steel mills and manufacturing plants to ensure greater value remains within African economies.
However, significant challenges remain. Significant capital requirements, regulatory uncertainty, land and community concerns, and limited energy and transportation infrastructure may delay some projects or increase costs.
Observers also highlight the need for transparent contracts and strong local content policies to ensure local communities benefit from new mining investments.
Many of these issues will feature prominently at Africa Mining Week 2026, scheduled to be held in Cape Town from October 14 to 16, where governments, investors and mining companies are expected to negotiate partnerships to expand Africa’s iron ore value chain.
Organizers say the gathering will focus on connecting global investors with projects aimed at not only increasing production but also turning Africa’s iron ore reserves into a foundation for industrial transformation.
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