Morocco overtakes South Africa as Africa’s top industrial economy

The African Development Bank’s 2025 Africa Industrialisation Index ranked Morocco first with a score of 0.8415, narrowly ahead of South Africa’s 0.8396. The index highlighted Morocco’s sustained industrial upgrading, export diversification and the effective implementation of strategic industrial policies as drivers of the rise, while noting South Africa’s gradual decline in competitiveness.

Morocco’s ascent is tied to long‑term investments in modern infrastructure, such as the Tanger Med port, new industrial zones and logistics platforms that aim to make the kingdom a gateway between Africa and Europe. Analysts also point to the country’s broader strategy to attract foreign investors, expand renewable‑energy production and strengthen trade ties across the continent.

Alongside the ranking, reports discuss demographic challenges, with Morocco’s birth rate falling to historic lows, potentially pressuring the labour market and social‑security systems in the coming years. Nonetheless, Morocco’s industrial leadership is being presented as a model for North‑African economies seeking to boost growth through stable governance and targeted economic reforms.