Why is direct reduction of iron useful in the third world countries?

Direct reduction of iron is useful in third world countries because it is a more cost-effective and energy-efficient method compared to traditional ironmaking processes like blast furnace. It can utilize a wider range of iron ore sources and can be set up in smaller scales, making it more accessible and adaptable to the resource constraints in developing countries. Additionally, direct reduction plants can be located closer to the source of iron ore, reducing transportation costs and improving local economies.