The Quiet Rise of Structural Steel Business in Africa — And Why Investors Should Pay Attention

Across the African continent, a new industrial chapter is quietly being written — not with fanfare, but with foundations. As economies shift from extractive to productive, structural steel is emerging as a key enabler of this transformation. Behind the scenes, ecosystems are taking shape to move Africa beyond raw exports and into a future of value-added manufacturing. For long-view investors, this isn’t just a sector — it’s a signal.

A Demand Curve Anchored in Real-World Growth

Africa’s appetite for steel is steadily climbing. In 2024, the continent consumed approximately 39.49 Million Tons in 2024. of steel. By 2034, this is expected to exceed 53 million tonnes, driven by a consistent CAGR of ~3.1%. While this may not rival global giants in absolute scale, it represents something rarer: a sector rooted in long-term fundamentals — infrastructure expansion, urbanisation, and industrial diversification.

From Dakar to Dar es Salaam, governments are investing in transport corridors, affordable housing, energy, ports, and economic zones — all of which rely heavily on structural-grade steel. Beams, rebar, columns — the skeletal frameworks of a developing future — are in ever-increasing demand.

The Untapped Edge: Raw Materials in Abundance

Africa is well-endowed with the resources that feed steel manufacturing — and yet, most of it remains underutilised:

Guinea holds over 2 billion tonnes of high-grade iron ore

• Simandou, Guinea’s flagship iron ore project, is estimated to contain 2.25–2.4 billion tonnes of high-grade ore (65% Fe)

Gabon and Cameroon have significant iron ore & manganese deposits

• Gabon hosts over 1 billion tonnes of iron ore at Belinga and has the world’s second-largest manganese reserves (~150 Mt)
• Cameroon’s Nkout mine is among the world’s largest, with around 3 billion tonnes of iron ore reserves.

Togo and Benin have abundant limestone reserves

• Togo mines over 1.3 Mt of limestone per year, which is used primarily for cement production.

Tanzania, Liberia, and Nigeria offer base-metals and scrap potential

• While not quantified here, major African mining countries such as these have established base-metal sectors and scrap supply infrastructures.

Despite this, Africa delivers < 2% of global crude steel

• Africa’s share of worldwide crude steel production remains below 2%, with total annual output around 22 Mt in 2024 versus nearly 1.9 billion tonnes globally

Historically, these mineral resources have exited the continent unprocessed — losing out on the value-add stages that create jobs and industrial strength.

That’s beginning to shift. Strategic industrial zones, often located near mines and ports, are being built to convert raw resources into finished inputs. These locations offer not just proximity, but the infrastructure, power reliability, and governance to enable manufacturing at scale.

Industrial Zones as Catalysts: Where Business Potential Meets Platform

From Gabon and Benin to Togo, governments — in partnership with ecosystem builders like ARISE IIP — are developing vertically integrated industrial ecosystems. These go beyond basic SEZs. They are purpose-built platforms designed to close the loop between minerals, manufacturing, and market.

• In Gabon, zones are enabling the processing of both manganese and iron ore, while also hosting timber and agri clusters.
• Togo’s mineral-rich inland is now linked to the coast via rail-enabled trade corridors, with limestone and construction materials as key plays.
• Benin is expanding its platform around light manufacturing, agri-processing, and now construction-oriented industries — all of which benefit from domestic structural steel.

By anchoring steel in these ecosystems, investors benefit from inbuilt demand, shared utilities, logistics access, and policy stability — a combination that de-risks both capex and opex.

Case Studies: Proven Paths to Scale

Africa is not the first to walk this path — and successful parallels are already visible.

In Vietnam, Hoa Phat Group produced 6.7 million tonnes of crude steel in 2023. In Q1 2025 alone, it recorded 2.66 Mt, up 25% year-on-year — growth driven not by exports, but by domestic infrastructure demand.

Turkey, meanwhile, produced 33.7 Mt of steel in 2023, exporting 14.5 Mt — much of it via Electric Arc Furnace (EAF) production for structural applications. Its growth was fuelled by SEZs, logistics integration, and local demand proximity.

Even within Africa, momentum is building. In Senegal, Tosyali Holding is investing $200 million in a structural steel plant linked to iron ore reserves in Angola, demonstrating that regional vertical integration is not just viable — it’s already underway.

And in Gabon, Benin, and Togo, structural steel is being explored within the framework of integrated industrial zones— where resource access, demand proximity, and infrastructure are already in place. Here, new investments are tapping into a model that has worked globally, but adapting it to fit African strengths.

Together, these examples show that Africa isn’t beginning at zero — it’s adapting a proven blueprint while shaping a version of success rooted in its own regions.

What About Competition? The Real Opportunity Is Local Substitution

Africa doesn’t need to be the next China. It needs to produce for itself.

Most countries across the continent still rely on imported structural steel — including rebar, beams and fabrication components. These imports come with costs: freight, foreign exchange exposure, long lead times and carbon footprints.

• In India, despite producing over 143 Mt of crude steel, finished steel imports reached 8.3 Mt in FY2023–24 — a 38% increase year-on-year — due to construction-led domestic shortages.
• Local substitution isn’t about undercutting prices — it’s about faster delivery, price predictability, and logistical efficiency.

That’s where Africa’s edge lies: zone-led plants that serve regional cities, reduce dependency, and align with AfCFTA’s seamless trade intent.

AfCFTA: A Continent-Sized Advantage

With 54 nations onboard, the African Continental Free Trade Area (AfCFTA) has quietly changed the playing field. By eliminating tariffs on 90% of intra-African goods and removing non-tariff barriers, it transforms domestic plants into regional export platforms.

• A steel facility in Togo or Gabon can now access growing markets in Niger, Burkina Faso, Mali, or Chad — without facing friction.
• Supply chains can cross borders more efficiently, allowing minerals to move within Africa — mines to mills to builders.

AfCFTA gives investors market reach without the cost of distance — a powerful differentiator in construction materials where margins often hinge on freight.

Strategic Location - Geography Working in Africa’s Favour

Africa’s position is more central than it appears on the map.

• Coastal West Africa is within 10–12 sailing days of Europe — making it viable for green steel exports to CBAM-compliant markets.
• Deepwater ports in Benin, Gabon, and Togo, often embedded within industrial platforms, offer simplified customs and integrated logistics.
• Rising logistics costs and global rerouting pressures make it smarter to produce closer to consumption.

In short: Africa is no longer on the periphery of industrial trade — it’s positioned at the intersection of it.

Steel Unlocks More Than Steel

Structural steel isn’t a standalone product — it’s a foundation.

Its presence powers growth in:

• Modular and prefabricated housing
• Infrastructure development
• Logistics hubs and warehousing
• Cement and aggregates
• Automotive components and light machinery
• Renewables (mounting, racking, and wind base frames)

Every new beam sets off a ripple — pulling in adjacent industries, skills, and capital.

What This Means for Investors

Structural steel manufacturing in Africa is no longer a “someday” opportunity. It’s here, it’s growing, and it’s increasingly investor-ready.

• Resource-backed: Iron ore, manganese, limestone — within reach of plants
• Zone-enabled: Reliable power, policy alignment, and shared infrastructure
• Market-accessible: AfCFTA unlocks the continent, port logistics open export
• Demand-driven: Real construction, real growth, real need
• Green-aligned: EAF tech and renewables ready for ESG-conscious buyers

This is not just about producing steel — it’s about building the spine of a continent that’s rising. One zone, one beam, one opportunity at a time.

Forging the Future, Locally

Africa’s steel story has moved beyond extraction and imports — it’s now about building the capacity to build. The transition to full-scale production is already in motion, driven by abundant natural resources, robust regional trade frameworks and integrated industrial platforms. For investors, this isn’t a leap of faith — it’s a strategic move into a sector primed with demand, access and ecosystem readiness.

Across zones in Togo, Gabon, Benin and beyond, players like ARISE IIP are closing critical gaps — connecting mines to markets, beams to skylines. The result? A future where Africa not only consumes steel but manufactures it at scale, on its own terms.

FAQs: Structural Steel Business in Africa

1. Why is structural steel manufacturing growing in Africa?

Africa is seeing a rise in structural steel manufacturing due to increasing infrastructure demand, abundant raw materials like iron ore and manganese and the growth of integrated industrial zones that support local production.

2. What makes Africa a strong investment opportunity for the structural steel industry?

Africa offers vast untapped mineral reserves, growing regional construction needs, zone-enabled infrastructure and AfCFTA-driven market access — all creating a low-risk, high-reward landscape for investors in structural steel.

3. Which African countries are leading in structural steel development?

Togo, Gabon, and Benin are emerging as structural steel hubs, supported by ecosystem builders like ARISE IIP. These countries offer access to raw materials, port infrastructure and integrated manufacturing zones.

4. How does AfCFTA benefit steel manufacturers in Africa?

AfCFTA allows steel producers to trade across 54 African countries without tariffs, cutting freight costs and opening up large regional markets. It turns local plants into export platforms with strong logistics advantages.

5. What raw materials are available in Africa for steel production?

Africa holds billions of tonnes of iron ore (Guinea, Cameroon), vast manganese deposits (Gabon) and limestone reserves (Togo, Benin), creating a strong foundation for local structural steel production.

6. Is Africa ready to replace imported structural steel with local production?

Yes. With growing demand, improved infrastructure, and regional trade access, Africa is positioned to reduce imports and substitute them with locally manufactured structural steel — improving speed, pricing and supply chain resilience.

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