Africa Steel Market Outlook
According to the report by Expert Market Research (EMR), the Africa steel market reached a volume of 37.95 million tons in 2024. Aided by the rising infrastructure development, growing industrialisation, and increasing investments in construction and manufacturing sectors, the market is projected to grow at a CAGR of 3.40% between 2025 and 2034, reaching an estimated volume of 53.02 million tons by 2034.
Steel is a fundamental material for modern economic development, playing a vital role in industries such as construction, automotive, energy, transportation, and machinery manufacturing. In Africa, the growing demand for durable, versatile, and cost-effective materials in infrastructure and industrial applications continues to fuel the consumption of steel across the continent. The region’s expanding population, rapid urbanisation, and government-led initiatives aimed at improving housing, transportation, and energy infrastructure are further driving the Africa steel market growth.
Africa Steel Market Size and Share
In 2024, the Africa steel market stood at a robust 37.95 million tons, with South Africa, Egypt, and Nigeria being the leading producers and consumers of steel in the region. South Africa remains the dominant player, accounting for a significant share of the continent’s steel production, supported by its established steel-making infrastructure and access to raw materials such as iron ore and coal. Egypt, driven by large-scale construction and industrialisation projects, also holds a substantial market share, while Nigeria’s growing demand for steel in the oil, gas, and construction sectors is expected to bolster its position in the coming years.
By 2034, the market is projected to expand to 53.02 million tons, supported by both domestic production and increased imports to meet the growing demand. The regional demand distribution indicates that North and Southern Africa currently hold the largest shares due to their relatively mature industrial bases, while East and West Africa are anticipated to witness the fastest growth, driven by infrastructure expansion, foreign direct investment (FDI), and the establishment of new manufacturing hubs.
Africa Steel Market Trends
Several key trends are shaping the Africa steel market landscape:
- Infrastructure Boom: The continent is experiencing a surge in infrastructure development projects, including roads, bridges, ports, railways, and housing. Governments are increasingly partnering with international organisations and private investors to modernise infrastructure, leading to sustained demand for steel.
- Urbanisation and Housing Demand: Rapid urban population growth across Africa has led to a surge in residential and commercial construction, thereby increasing steel consumption for building frames, reinforcements, and roofing materials.
- Emergence of Local Steel Production: African nations are focusing on enhancing domestic steel production capabilities to reduce dependency on imports. Several countries, including Nigeria, Kenya, and Egypt, are investing in integrated steel plants and mini-mills to strengthen local supply chains.
- Adoption of Green Steel and Recycling Initiatives: Environmental sustainability is becoming an important focus area. Efforts are being made to develop green steel production processes using renewable energy sources and recycled scrap, aligning with global decarbonisation goals.
- Technological Integration: The adoption of advanced technologies, including electric arc furnaces (EAFs), automation, and digital monitoring systems, is improving production efficiency and quality control across African steel plants.
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Drivers of Growth
The Africa steel market growth is driven by multiple interrelated factors:
- Infrastructure Development Initiatives: Massive investments in infrastructure under programs such as the African Union’s Agenda 2063, the African Continental Free Trade Area (AfCFTA), and China’s Belt and Road Initiative (BRI) have significantly boosted steel demand across sectors.
- Industrialisation and Manufacturing Expansion: Governments are promoting industrial diversification and manufacturing growth, which has led to increased consumption of steel in machinery, automotive, and equipment manufacturing.
- Urbanisation and Population Growth: Africa’s population, expected to double by 2050, is driving housing demand and urban infrastructure needs, directly supporting the expansion of the steel market.
- Investment in Energy and Mining Projects: The growing exploration of oil, gas, and mineral resources necessitates large-scale steel structures, pipelines, and drilling equipment, further propelling market demand.
- Trade Liberalisation and Regional Integration: The implementation of the AfCFTA is expected to reduce trade barriers, encourage cross-border collaboration, and improve access to raw materials and finished steel products across African countries.
Africa Steel Market Segmentation
The market can be divided based on product, type, application, and region.
Market Breakup by Product
- Long Steel
- Wire Rod & Wire Mesh
- Rebars
- Structurals
- Others
- Flat Steel
- HR Coils & Plates
- CR Coils
- Colour Coated Sheet/Coil
- Welded Pipes
- Others
Market Breakup by Type
- Carbon Steel
- Alloy & Tool Steel
- Stainless Steel
Market Breakup by Application
- Construction
- Mechanical Engineering
- Automotive
- Metalware
- Domestic Appliances
- Agricultural
- Others
Market Breakup by Region
- South Africa
- Mozabique
- Zambia
- Democratic Republic of the Congo
- Botswana
- Zimbabwe
- Namibia
- Malawi
- Angola
- Others
Competitive Landscape
Some of the major Key players explored in the report by Expert Market Research are as follows:
- POSCO Co., Ltd.
- Acerinox S.A.
- Nippon Steel Corporation
- Outokumpu Oyj
- African Industries Group
- Egyptian Steel Group
- El Marakby Steel
- Libyan Iron and Steel Company
- Best Angola Metal
- Others
Challenges and Opportunities
Despite its positive outlook, the Africa steel market faces several challenges. These include inconsistent energy supply, limited local production capacity, and high import dependence. Infrastructure gaps, especially in logistics and transportation, continue to affect the cost-effectiveness of steel production and distribution. Additionally, fluctuating raw material prices and the lack of technological expertise pose further operational hurdles.
However, the market presents substantial opportunities. The ongoing shift towards intra-African trade, facilitated by AfCFTA, is expected to create a unified regional market for steel, enabling economies of scale and improved competitiveness. The continent’s abundant iron ore reserves offer a long-term advantage for developing an integrated steel value chain. Furthermore, increasing government support for public-private partnerships (PPPs) in infrastructure development provides new growth avenues for domestic steel producers.
Environmental sustainability initiatives also present opportunities for innovation. With growing global emphasis on reducing carbon emissions, Africa has the potential to leapfrog into green steel technologies by leveraging renewable energy sources such as solar and hydroelectric power.
Africa Steel Market Forecast
The Africa steel market is poised for steady growth in the coming decade. Between 2025 and 2034, the market is projected to grow at a CAGR of 3.40%, reaching 53.02 million tons by 2034. The continued expansion of urban areas, rising disposable incomes, and increasing demand for modern housing and infrastructure are expected to sustain consumption levels across the region.
In the short term, growth will primarily be driven by government infrastructure projects and private investments in real estate and energy. Over the longer term, the establishment of domestic steel plants, integration of renewable energy in production processes, and adoption of advanced technologies will strengthen the industry’s self-sufficiency and global competitiveness.
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