Morocco has overtaken South Africa to become Africa’s most industrialised country, according to the 2025 African Industrialisation Index released by the African Development Bank (AfDB).

The report, launched during the AfDB’s 2026 Annual Meetings in Brazzaville, marks the first time Morocco has displaced South Africa, long regarded as the continent’s industrial leader.

According to the AfDB, Morocco’s rise was driven by the modernisation of its industrial sector, export diversification, and consistent industrial policy over the past two decades.

The report described the development as a major shift in Africa’s industrial landscape, with Morocco steadily building a strong export-oriented economy through investment in infrastructure, industrial parks, free zones, and global manufacturing partnerships.

South Africa remains one of Africa’s biggest manufacturing economies, but the AfDB noted that its dominance is gradually weakening as Morocco expands its influence across key sectors, including automotive manufacturing, aerospace, chemicals, electrical products, and agro-processing.

The index assessed all 54 African countries between 2010 and 2024 using indicators such as productive sophistication, competitiveness, diversification, and integration into global value chains.

According to the report, 41 African countries improved their industrialisation scores during the period, while Africa’s overall industrial performance rose by 6%.

However, the AfDB said industrial growth across the continent remains uneven, with North Africa and Southern Africa continuing to dominate the sector.

Morocco’s automotive industry was highlighted as one of the strongest drivers of its industrial expansion, with the country now serving as a major manufacturing and export platform for the European market.

Its aerospace sector also recorded significant growth.

The report referenced a €200 million investment announced by French aerospace giant Safran in October 2025 to establish an Airbus engine assembly line and maintenance facility near Casablanca.

Morocco currently hosts about 150 aerospace companies employing roughly 25,000 people, while aerospace exports reached 26 billion dirhams in 2024.

Despite Morocco’s rise, the AfDB said Africa’s industrial footprint on the global stage remains limited.

According to the report, the continent accounts for less than 2% of global manufacturing output and only 1.4% of manufactured exports worldwide.

The newly launched Industrial Investment Barometer in Africa also showed that North Africa attracted 56% of the continent's cumulative industrial investment between 2020 and 2025, with Morocco and Egypt leading the region.

The AfDB said Morocco’s latest ranking reflects a deliberate strategy to use industrialisation as a tool for economic sovereignty, export growth, and investment attraction.

The report added that Morocco is increasingly becoming a model for Africa because of its success in attracting investment, developing export-driven industries, and building a competitive industrial base.