Morocco has officially surpassed South Africa as the continent’s leading industrialised nation, according to the 2025 African Industrialisation Index released by the African Development Bank (AfDB). The report, unveiled during the AfDB’s 2026 Annual Meetings in Brazzaville, signifies a landmark shift, marking the first time Morocco has claimed the top spot from South Africa, a country long recognized as the industrial powerhouse of Africa.
A Shifting Industrial Landscape
This significant development is attributed by the AfDB to Morocco’s sustained efforts in modernising its industrial sector, diversifying its exports, and implementing a consistent industrial policy over the past two decades. The report highlights Morocco’s strategic approach in building a robust export-oriented economy through substantial investments in infrastructure, the establishment of industrial parks and free zones, and forging global manufacturing partnerships.
While South Africa continues to be a major manufacturing economy on the continent, its dominance has seen a gradual decline. The AfDB noted that Morocco’s expanding influence across key sectors, including automotive manufacturing, aerospace, chemicals, electrical products, and agro-processing, has contributed to this shift.
Index Methodology and Continental Trends
The African Industrialisation Index assessed all 54 African countries over the period spanning 2010 to 2024. It utilised indicators such as productive sophistication, competitiveness, diversification, and integration into global value chains to rank nations. The findings revealed a positive trend, with 41 African countries improving their industrialisation scores and the continent’s overall industrial performance increasing by 6% during this timeframe.
However, the AfDB cautioned that industrial growth across Africa remains uneven. North Africa and Southern Africa continue to be the dominant regions in the sector, despite progress elsewhere. The report specifically pointed to Morocco’s automotive industry as a key driver of its industrial expansion. The nation now serves as a significant manufacturing and export hub, particularly for the European market.
Key Sectoral Growth
Morocco’s aerospace sector has also experienced notable growth. The report cited a substantial €200 million investment by French aerospace giant Safran in October 2025. This investment is earmarked for establishing an Airbus engine assembly line and a maintenance facility near Casablanca. Currently, Morocco hosts approximately 150 aerospace companies, providing employment for around 25,000 individuals, with aerospace exports reaching 26 billion dirhams in 2024.
Global Context and Investment Patterns
Despite Morocco’s impressive rise, the AfDB underscored that Africa’s overall industrial footprint on the global stage remains relatively limited. The continent accounts for less than 2% of global manufacturing output and a mere 1.4% of worldwide manufactured exports. The newly launched Industrial Investment Barometer in Africa further indicates that North Africa attracted a significant 56% of the continent’s cumulative industrial investment between 2020 and 2025, with Morocco and Egypt leading this investment surge in the region.
Morocco’s Strategic Vision
The AfDB posits that Morocco’s elevated ranking is a direct reflection of its deliberate strategy to leverage industrialisation as a critical tool for achieving economic sovereignty, boosting export growth, and attracting foreign investment. The report suggests that Morocco is increasingly being viewed as a model for other African nations due to its success in attracting investment, fostering export-driven industries, and cultivating a competitive industrial base.
Looking Ahead
The shift in industrial leadership highlights the dynamic nature of economic development in Africa. As Morocco consolidates its position, attention will turn to how other nations can replicate its success. Key factors to watch include the continued diversification of Morocco’s industrial base, its ability to further integrate into higher-value global supply chains, and the potential for spillover effects on regional industrial development. The AfDB’s ongoing monitoring of these trends will be crucial in understanding the future trajectory of industrialisation across the continent.
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