Morocco has overtaken South Africa to become Africa’s leading industrial economy for the first time, according to the African Development Bank’s 2025 Africa Industrialisation Index, marking a notable shift in the continent’s manufacturing landscape.
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The index placed Morocco at the top with a score of 0.8415, narrowly ahead of South Africa’s 0.8396. South Africa, which had led the rankings since 2010, recorded a gradual decline in long-term industrial competitiveness despite remaining one of Africa’s major industrial powers. Egypt ranked third, followed by Tunisia and Mauritius, while Algeria, Eswatini, Senegal, Namibia and Ivory Coast completed the top ten.
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The report attributed Morocco’s rise to sustained industrial upgrading, export diversification and the consistent application of long-term industrial policies. It also highlighted a broader pattern in which North African countries continue to dominate industrial performance on the continent, with the region maintaining the highest overall industrialisation score.
Despite gains in several countries, the AfDB noted that Africa’s industrial progress remains uneven. Forty-one of 54 countries improved their industrialisation scores between 2010 and 2024, yet only 24 improved their rankings. The continent’s average score rose modestly from 0.5134 to 0.5445 over the same period.
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Manufacturing output has also grown, with Africa’s manufacturing value added increasing from $285 billion in 2020 to $351 billion in 2025. However, the continent still contributes less than 2% of global manufacturing output and 1.4% of global manufactured exports.
The report also pointed to weak regional integration as a key constraint, noting that intra-African trade accounted for just 14.4% of total trade between 2022 and 2024. It warned that fragmented markets, infrastructure gaps and regulatory differences continue to limit industrial expansion.
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