Prospects for SA stainless steel in Africa

by Darren
Prospects for SA stainless steel in Africa SASSDA

Backing local stainless steel companies, sassda has identified a number of new market opportunities in Africa, specifically Tanzania, Senegal and Mozambique.

The Southern Africa Stainless Steel Development Association (sassda) has identified a number of new market opportunities for local steel companies to strengthen or expand their businesses into Africa.

This follows strategic trips to Tanzania, Senegal and Mozambique as part of the Department of Trade and Industry’s (DTI’s) Export Marketing and Investment Assistance Scheme (EMIA).

Tanzania: Railway and gas
According to SASSDA market intelligence specialist, Lesley Squires, Tanzania’s new 2 561km railway project and 532km natural gas pipeline to the coast provide ample opportunities for steel fabrication companies to get involved.

Senegal: Agro-processing
In Senegal, the construction of a new international airport and adjoining office parks in Dakar are well under way.

There is also a big focus on growing the country’s agro-processing industry with the Senegalese government looking to existing markets for the supply of food- and beverage-processing equipment and fittings. As a result, Senegal is liaising with the Ferrous Metals Desk of the DTI.

“There is currently no meat industry in Senegal. To bolster local production, they are introducing a new sheep-goat hybrid that will offer a succulent meat product,” Squires explains. “In addition, the country currently has no abattoirs, leaving scope to establish and grow the Senegalese agro-processing industry.”

Research is currently underway between the local abattoir industry, local representatives and sassda to establish a long-lasting, hygienic stainless steel that is also cost-effective for the building of abattoirs, both locally and for export markets.

Finally, the growing demand by telecommunications companies such as MTN, Vodacom and Orange, which require logistics laboratories with specified enclosures, has generated interest in 3CR12 stainless steel, since Dakar is located on the coast and therefore has a highly-corrosive atmosphere.

Mozambique: Infrastructure
Squires points out that in Mozambique, Pemba’s liquid gas reserves have resulted in a potential $30-billion liquefied natural gas (LNG) plant with production set to commence in 2018 on the outskirts of Palma. The two companies involved in this development are ENI (Italian) and Anadarko Petroleum (USA). Overall, the plan is to have a gas pipeline from Palma to Beira with various off-shoots (supply links) along the way.

A gas power plant will be also be built, with the supply of materials expected to come from either Dubai or South Africa.

The linchpin in the Pemba development hub is the new harbour that will be the largest deep-water harbour on the continent. Testing is currently taking place to investigate if pilings should be concrete or steel.

The development of the harbour will take place in tandem with the development of a new urbanisation plan for 18 000 hectares that will see the building of residential homes and industrial parks in both Pemba and Palma.

Agro-, food- and beverage processing will also be required and the government is focussed on developing this, underpinned by the construction of two new distribution warehouses outside both Pemba and Maputo.

“Overall, there is huge potential in Mozambique in facilitating members and business into the region. In the past, I have put the relevant Mozambican partners in contact with our sassda members who are able to meet their requirements and supply them, and I will continue to do so in light of the range of exciting projects planned or already underway,” Squires adds.

Tel: 011 883 0119
Website: sassda.co.za

The drivers of growth:

Railway project.
Gas pipeline.

Airport and commercial development.
Mobile infrastructure.

Liquefied natural gas (LNG) plant.
Industrial park.

You may also like