Morocco has overtaken South Africa to become Africa’s most industrialised nation for the first time, according to the African Development Bank’s 2025 Africa Industrialisation Index.
The report ranked Morocco first with 0.8415 points, narrowly ahead of South Africa’s 0.8396 points, citing the North African country’s strong industrial reforms, export diversification and long-term economic planning.
South Africa, which held the top position since 2010, recorded a gradual decline in industrial competitiveness over the past decade despite remaining one of the continent’s largest industrial economies.
The index evaluates countries using factors such as industrial performance, infrastructure, investment, education, access to finance, business environment and economic stability.
Egypt ranked third on the continent, followed by Tunisia, while Mauritius and Algeria completed the top six, highlighting the dominance of North African countries in Africa’s industrial landscape.
According to the report, North Africa remained the continent’s leading industrial region in 2024, ahead of Southern Africa, while West, East and Central Africa continued to lag behind.
The African Development Bank noted that industrial progress across the continent remains uneven despite improvements in many countries. Forty-one African nations improved their industrialisation scores between 2010 and 2024, though only 24 countries moved up in the rankings.
Africa’s manufacturing value added rose from $285bn in 2020 to $351bn in 2025, but the continent still contributes less than two percent of global manufacturing output.
The report also identified weak regional integration, poor infrastructure and trade barriers as major obstacles slowing industrial growth across Africa.
The African Development Bank said the African Continental Free Trade Area could significantly boost industrialisation if member states strengthen regional production networks and improve cross-border trade cooperation.
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