Casablanca – Morocco has ranked first among Africa’s industrial economies for the first time, overtaking South Africa in the 2025 African Industrialization Index published by the African Development Bank (AfDB). The development marks a significant shift in the continent’s industrial landscape, ending more than a decade of South African leadership and highlighting Morocco’s growing role as a major manufacturing and export hub.

The index, unveiled during the AfDB’s 2026 annual meetings in Brazzaville, Republic of the Congo, evaluated the industrial performance of African countries over the 2010–2024 period. Morocco recorded a score of 0.8415 points, slightly ahead of South Africa’s 0.8396. While the numerical gap remains narrow, economists and analysts view the result as symbolically important because it reflects long-term structural changes in Africa’s industrial geography.

According to the report, Morocco’s rise was driven by continuous industrial upgrading, export diversification, infrastructure development, and the implementation of targeted industrial strategies aimed at integrating the kingdom into global production networks. The AfDB noted that Morocco has increasingly shifted toward higher value-added industries while strengthening its competitiveness in international markets.

South Africa, which had occupied the top position since 2010, remains one of the continent’s largest industrial powers. However, the report pointed to a gradual decline in its industrial competitiveness over recent years. South Africa’s score fell from 0.8819 points in 2010 to 0.8396 in 2024, reflecting challenges linked to energy shortages, slower industrial growth, unemployment pressures, and economic instability.

The African Industrialization Index measures industrial development through several dimensions, including industrial performance, infrastructure quality, financing, investment attractiveness, education, governance, business conditions, inflation levels, and the degree of integration into industrial value chains.

Morocco’s industrial transformation has been largely supported by investments in automotive manufacturing, aerospace industries, renewable energy technologies, electrical equipment, and industrial processing sectors. The kingdom has become one of Africa’s largest car producers, hosting major international manufacturers and a wide network of suppliers connected to global automotive supply chains.

The report highlighted Morocco’s success in diversifying exports over the past decade. In addition to phosphate-related products, the country has expanded exports of vehicles, aircraft components, electrical systems, industrial cables, and emerging clean-energy technologies. Analysts say this diversification reduced dependence on traditional sectors and strengthened Morocco’s resilience against external economic fluctuations.

Infrastructure development has also played a central role in Morocco’s industrial expansion. Major projects such as Tangier Med Port transformed the country into one of the region’s leading logistics and shipping platforms linking Europe, Africa, and global markets. Additional projects including Nador West Med Port and the planned Dakhla Atlantic Port are expected to reinforce Morocco’s strategic position in international trade and manufacturing.

Alongside the Industrialization Index, the African Development Bank also presented the African Industrial Investment Barometer, developed in partnership with WITBA Invest SA and Trendeo. The report evaluated industrial investment trends through indicators related to diversification, investment attractiveness, and local industrial integration.

According to the barometer, North Africa attracted 56% of cumulative industrial investment in Africa between 2020 and 2025, with Morocco and Egypt identified as the region’s main industrial growth engines. The report also noted that North Africa remains the continent’s most advanced industrial region, ahead of Southern Africa, West Africa, East Africa, and Central Africa.

At the continental level, Egypt ranked third in the industrialization index with 0.7827 points, followed by Tunisia with 0.7760 points. Mauritius placed fifth with 0.6731 points, while Algeria ranked sixth with 0.6661 points. The report described Morocco, South Africa, Egypt, and Tunisia as Africa’s leading industrial group due to their comparatively advanced industrial systems and export capabilities.

Despite the progress, the AfDB stressed that industrial integration across Africa remains weak. Intra-African trade accounts for only 14.4% of total trade on the continent, highlighting persistent fragmentation in regional production systems and economic coordination. The report called for stronger implementation of the African Continental Free Trade Area and the creation of more integrated industrial corridors and supply chains.

Another major issue raised in the report concerns the transition toward green industrialization. African industries were urged to accelerate decarbonization efforts to remain competitive in global markets, particularly as Europe and North America prepare stricter carbon border adjustment mechanisms that could affect exports from carbon-intensive industries.

Morocco is increasingly positioning itself within this transition through investments in renewable energy, battery manufacturing, and green hydrogen projects. Analysts believe these sectors could become major pillars of future industrial growth while strengthening Morocco’s competitiveness in low-carbon industries.

Economic observers also point to Morocco’s political and institutional stability as an important factor behind rising investor confidence. Over the past several years, the kingdom has attracted multinational companies seeking stable industrial and export platforms connected to both European and African markets.

Experts say Morocco’s industrial leadership now brings new responsibilities and challenges. Maintaining growth will require continued investment in vocational training, research and development, industrial innovation, and workforce skills. Analysts also stress the importance of ensuring that industrial expansion translates into broader employment opportunities and balanced regional development.

The World Bank recently estimated that Morocco could create 1.7 million jobs by 2035 and increase its real GDP by nearly 20% above baseline projections if structural reforms continue. Economists believe the expansion of manufacturing industries could play a central role in achieving these objectives by generating higher added value and reducing dependence on climate-sensitive sectors such as agriculture.

For many observers, Morocco’s rise to the top of Africa’s industrial rankings represents more than a statistical achievement. It reflects a deeper transformation of the Moroccan economy into a diversified industrial platform with growing influence across Africa and stronger integration into global supply chains. The development is also expected to strengthen Morocco’s economic and diplomatic presence across the continent as competition intensifies among African economies seeking industrial leadership and foreign investment.