Morocco overtakes South Africa as Africa’s Most Industrialised economy

Morocco has overtaken South Africa to become Africa’s most industrialised economy, according to the latest Africa Industrialisation Index released by the African Development Bank (AfDB), marking a significant shift in the continent’s manufacturing and industrial landscape.

The ranking reflects Morocco’s growing industrial competitiveness, driven by export diversification, targeted industrial policies and sustained investments in manufacturing, while South Africa continues to face challenges that have weakened its industrial performance.

The development highlights the changing balance of economic power in Africa as countries compete to attract investment, expand exports and strengthen domestic production.

AfDB Report Signals Shift in Africa’s Industrial Leadership

According to the African Development Bank’s Africa Industrialisation Index 2025, Morocco emerged as the continent’s top industrial economy last year, surpassing South Africa, which had long held the position.

The report noted that Morocco has steadily improved its industrial capabilities through strategic government policies aimed at boosting manufacturing output, increasing exports and integrating the country into global value chains.

“While South Africa remains a continental industrial powerhouse, it continues to experience a steady decline in industrial competitiveness,” the AfDB said in its assessment.

The ranking measures industrial performance using indicators such as manufacturing output, export sophistication, infrastructure development, productivity and industrial competitiveness.

Morocco’s Industrial Expansion Drives Rise

Morocco’s ascent has been supported by major investments in sectors including automotive manufacturing, aerospace, renewable energy and industrial exports.

The North African nation has increasingly positioned itself as a manufacturing hub linking Africa, Europe and the Middle East, attracting multinational companies seeking access to international markets.

Its industrial strategy has focused on expanding higher-value exports while reducing dependence on traditional sectors, helping to strengthen resilience and competitiveness.

The country’s automotive sector, in particular, has become one of Africa’s largest, with exports reaching multiple global markets and contributing significantly to industrial growth.

South Africa Faces Competitiveness Challenges

Despite losing the top position, South Africa remains one of the continent’s most important industrial economies, with a diversified manufacturing base and advanced industrial infrastructure.

However, persistent challenges including energy shortages, logistics bottlenecks, infrastructure constraints and slower economic growth have weighed on industrial performance in recent years.

The AfDB report suggests these factors have gradually eroded the country’s competitiveness relative to faster-growing industrial economies on the continent.

Race for Industrialisation Intensifies Across Africa

The latest ranking underscores the growing competition among African economies to build stronger manufacturing sectors and reduce dependence on commodity exports.

Industrialisation remains a key priority for many governments as they seek to create jobs, boost exports and accelerate economic transformation.

For Morocco, securing the top spot represents a milestone in its long-term economic strategy. For South Africa, the report serves as a reminder of the challenges facing its industrial sector and the reforms needed to regain momentum.

The AfDB said the continent’s industrial future will increasingly depend on countries’ ability to diversify production, improve competitiveness and integrate into global manufacturing value chains.

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