Morocco has surpassed South Africa as Africa’s most industrialised country, according to the 2025 African Industrialisation Index. The African Development Bank (AfDB) released this index during its 2026 Annual Meetings in Brazzaville.
This marks the first time Morocco has displaced South Africa, long considered Africa’s industrial leader. Morocco’s rise stems from modernising its industrial sector, diversifying its exports, and consistent industrial policy over the past two decades. The AfDB report highlights a major shift in Africa's industrial landscape.
This development fits into a broader trend of shifting economic powers within Africa. While North Africa and Southern Africa still dominate industrial output, the changes reflect increasing competition and strategic investments across the continent. Africa’s overall industrial performance rose by 6%, although growth remains uneven across regions. Data from the Industrial Investment Barometer in Africa shows North Africa attracted 56% of cumulative industrial investment between 2020 and 2025.
The AfDB stated Morocco's climb reflects a deliberate strategy of using industrialisation for economic sovereignty, export growth, and investment attraction. “Morocco’s latest ranking reflects a deliberate strategy to use industrialisation as a tool for economic sovereignty, export growth, and investment attraction,” the report noted. It also added Morocco is becoming a model for Africa due to its success in attracting investment and developing competitive export-driven industries.
What happens next involves other African nations potentially adopting similar strategies to boost their own industrial sectors. Decision-makers and markets will watch for continued growth in Morocco's key sectors and any shifts in global manufacturing partnerships. This trend could reshape intra-African trade and investment flows.
Morocco’s automotive industry is a strong driver of this industrial expansion, making the country a major export platform for Europe. Its aerospace sector also experienced significant growth. French aerospace giant Safran announced a €200 million investment in October 2025 for an Airbus engine assembly line near Casablanca. Morocco currently hosts about 150 aerospace companies, employing approximately 25,000 people. Aerospace exports reached 26 billion dirhams in 2024.
South Africa remains one of Africa’s biggest manufacturing economies, but its dominance is weakening. Morocco is expanding its influence across critical sectors, including automotive manufacturing, aerospace, chemicals, and agro-processing. The index assessed 54 African countries between 2010 and 2024. It used indicators such as productive sophistication, competitiveness, diversification, and integration into global value chains.
Despite Morocco’s progress, Africa’s global industrial footprint remains limited. The continent accounts for less than 2% of global manufacturing output. It also contributes only 1.4% of manufactured exports worldwide. This highlights ongoing challenges for wider African industrial development. However, the success of countries like Morocco offers a blueprint for overcoming these hurdles.