非洲钢铁行业报告

6-8March2006-SheratonHotel-AbuDhabi-UAEArabIronandSteelUnionGeneralHoldingCorporationInternationalSymposiumandExhibitionInternationalSymposiumandExhibitionInternationalSymposiumandExhibitionInternationalSymposiumandExhibitionTheAfricanIronAndSteelIndustry:RealitiesAndProspectsBy:SanusiAl-HajiMohamedSecretaryGeneralAfricanIronandSteelAssociationNigeiraArabSteelIndustry2006TheAfricanIronAndSteelIndustry:RealitiesAndProspectsINTRODUCTIONTheIronandSteelIndustryinAfricaSouthoftheSaharaisinvirtualdormancy,exceptforSouthAfrica.Thisisinspiteofthefactthatitisthebasicfoundationforindustrialdevelopmentofanycountry.Africahas30%oftheworld’smineralresources,whichincludealltherawmaterialsrequiredforthesteelindustry,whichraisestheprospectsforthesteelindustryintheregion.Africaproduced17.898milliontonnesin2005representing1.6%ofworldproduction.Nigeria,whichconceivedtheambitiousintegratedAjaokutaSteelCompany,isyettogetittocompletion.TheZimbabweanZISCO,ontheotherhandhasbeenretardedbythecrossfirebetweenthegovernmentofthecountryandwesternindustrialintrigues.TheNorthAfricanindustryisgrowinggraduallyhowever.Theironoreandotherrawmaterialsforsteelmakinghavebeeneithersacrificedinfavourofgoldanddiamondexplorationononehandorhamperedbypoliticalinstabilityasaresultofarmedconflicts,ontheother,andinsomecasesbyboth.TodayAfrica’scontributiontothebasemetals(copper,leadandzinc)is,infact,lessthan7%.TherealityofthesituationisthegrossunderutilizationofAfrica’smineralresources.Forthepurposeofthispresentation,IwillconcentrateontherealitiesandprospectsofthesteelindustryinAfricaSouthoftheSahara,astheArabIronandSteelUnion(AISU)isbetterpositionedtogettherealsituationintheNorthAfricansub-region,whichincludeEgypt,Algeria,Libya,andTunisia.AFRICA’SSTEELSECTORTheSteelIndustryintheAfricansub-regionisstillinastateofslumber.Theindustryisbedeviledbycivilwarsandstrifeaswellaslackofpoliticalwillonthesideofthenations’leadership.IncountrieslikeNigeriaandZimbabwe,wheresubstantialinvestmenthasbeenput,thereisreallynothingtowritehomeaboutinrelationtootherpartsoftheworld.WhentheindustryinNigeriaandZimbabweisrelatedtoAfricasouthoftheSahara,however,thesetwocountriescouldpridethemselvesforhavingacquiredthesophisticatedtechnologiesforsteelmakingintheirintegratedsteelplants.PresentlytheNigeriansteelindustrycanbestbedescribedasstagnantifnotretrogressingfollowingwhatcanrightfullybeconsideredasprematureprivatizationofthepublicsteelcompaniesthatbeganintheturnofthecentury.ZimbabweanZISCO,thoughoperatingforsometimeafteritsresuscitation,hasbeenrecordinglossesandthereforeneedstobeturnedaround.ThegovernmentconsidersZISCOstrategictoitseconomicwellbeing,assuchitislookingforgenuinepartnerstoturnitaround.Anx-rayofthesteelindustryinthesub-regionwithaviewtoidentifyingtheproblemsmilitatingagainstsuccessfulindustrialtakeoffshowsthatapartfromtheproblemsstatedTHEAFRICANIRONANDSTEELINDUSTRY:REALITIESANDPROSPECTSArabSteelIndustry20062above,externalsabotageandinternalfactorshavealsobeenthemajorreasonsforitsstagnation.SOUTHAFRICATheperformanceoftheSouthAfricansteelindustry,sofarthemostsuccessfulinAfrica,canbeattributedtothesocio-culturalpeculiaritiesofthis1stworldcountrywithina3rdworldnation.ThemassiveEuropeaninvestmentinthesteelandothersectorshassignificantlyimprovedthewelfareofatleastthewhiteSouthAfricanminority.ThesteelindustryintheCountrythereforewasdevelopedinlinewitheventsintheindustryinWesternEurope.ItistobenotedthatSouthAfricaevenoutproducessomeofthedevelopedcountriesinEuropeandtheFarEastasfarassteelproductionisconcerned.Theirtotaloutputin2005was9.5milliontonnesofcrudesteelrepresenting55.50%ofAfrica’sproductionandisranked28thintheworldsteelproducingcompanies.ISCORisthelargestSouthAfricansteelproducer.Therearefewre-rollingmillsmeltingscrapsandtheycontributesome300,000tonnesoverandabovetheproductionofISCOR.ManyotherfinishingmillsdependonISCORfortheirbilletsorflatsheetsfortheirdownstreamprocess.SouthAfricaexportssteeltotheUSAandsomeotherAfricancountries.NIGERIANigeriahaspotentialandprospecttobeoneofthemajorsteelproducersinAfrica.Politicalinstabilityandlackofpoliticalwillhas,however,renderedthesteelindustryimpotent.Theonlyconsiderableactivity,mainlyrolling,beingcarriedoutiswithintheprivatesectorsteelplants.TheAjaokutaSteelCompany(ASCO)andDeltaSteelCompany(DSC)bothfullyintegrated,arenowconcessionedandsoldtoGlobalInfrastructureHoldingsLimited(GIHL)respectively,inthegovernment’sprivatizationpolicy.TheonlydevelopedIronOreminelocatedatItakpehasalsobeenconcessionedtothesameGIHL.GIHLwasinNigeriaasaholdingcompanyofIspatIndustriesLimited(IIL),anIndianfamilybusiness.ItlatercametolightthatIILwasneverinvolvedintheconcessionagreementneitherweretheyinvolvedintheoutrightpurchaseoftheNigerianDeltasteelcompany.Itisnowbecomingmoreclearthatthecompanyhasnofinancialnormanagerialcapabilitytomeettheconditionssetoutintheagreements.ASCO’sfirstphasewasdesignedtoproduce1.3milliontonnesofliquidsteelusingtheBlastFurnace/BasicOxygenTechnology,whichisyettobecompleted.DeltaSteelCompanyontheotherhandisdesignedtoproduce1million