Morocco has overtaken South Africa for the first time to become Africa’s leading industrial economy, according to the African Development Bank’s 2025 Industrialisation Index, released at the bank’s annual meetings in Brazzaville. Morocco scored 0.8415 points, narrowly edging South Africa’s 0.8396, marking a significant shift in the continent’s industrial geography after over a decade of South African dominance. The AfDB attributed the change to Morocco’s sustained industrial upgrading, export diversification, and long-term state-backed industrial policy across its automotive, aerospace, and phosphate sectors.
Key Overview
- Morocco’s Score: 0.8415 vs. South Africa’s 0.8396 on the 2025 index
- Assessment Period: Industrial performance across 54 African countries from 2010 to 2024
- Countries Improving: 41 of 54 African countries improved their industrialization scores
- Continental Performance: Average country score rose 6% over the period
- Africa’s Manufacturing Share: Less than 2% of global output; just 1.4% of global manufactured exports
- North Africa Investment: Drew 56% of cumulative continental industrial investment (2020–2025)
- Morocco’s Automotive Output: Over 1 million vehicles produced in 2025
- Morocco’s Aerospace Exports: Record $2.9 billion in 2024
Morocco has claimed the top position in the African Development Bank’s 2025 Industrialisation Index, ending South Africa’s reign as the continent’s leading industrial economy since the index began tracking performance in 2010. The report, launched alongside the inaugural Africa Industrial Investment Barometer at the AfDB’s 2026 annual meetings in Brazzaville, assessed industrial development across all 54 African countries and found that 41 nations improved their scores, with continental performance rising 6% overall.
Yet significant gaps persist. Africa still accounts for less than 2% of global manufacturing output and just 1.4% of manufactured exports, while manufacturing value added per capita reached $226.7 in 2025 but remains below the 2014 peak of $254.9. Intra-African trade stood at just 14.4% of the continent’s total between 2022 and 2024, compared with 60% in Asia and 57% in Europe.
The Automotive Engine
At the heart of Morocco’s rise is its transformation into Africa’s largest car producer. Industry and Trade Minister Ryad Mezzour confirmed that Morocco produced one million vehicles in 2025, hitting the target ahead of schedule and putting the country on pace to rival France’s annual output. The sector is anchored by Renault’s plant in Tangier and Stellantis’s facility in Kenitra, supported by a local supplier ecosystem of more than 270 companies specializing in automotive parts and components.
The numbers are still growing. Stellantis announced a €1.2 billion investment in July 2025 to expand its Kenitra facility from 200,000 to 535,000 vehicles annually by 2030, incorporating electric and hybrid production lines. Morocco’s automotive exports already exceeded $14.1 billion in 2023, and the country’s competitive advantage is stark: production costs average just $106 per vehicle, according to a 2025 Oliver Wyman report, while production costs in Morocco’s aerospace sector run at €25 per hour compared to €100–120 in Europe or the U.S.
Aerospace Takes Flight
Morocco’s aerospace sector has emerged as its second industrial pillar. In 2024, the industry posted record exports of $2.9 billion, a 15% jump from the previous year, with revenue having multiplied 35 times over two decades. The sector now encompasses 150 companies employing 26,000 workers across Casablanca, Tangier, Rabat, and Fez, specializing in fuselages, structural components, and wiring systems. Major international firms including Boeing, Airbus, Safran, and Bombardier have integrated Morocco into their global supply chains. A landmark moment came with the inauguration of Safran’s $300 million aircraft engine manufacturing plant in Casablanca in 2024.
Aerospace exports continued climbing in the first half of 2025, rising 8.9% to 14.13 billion dirhams, driven by assembly components and electrical wiring systems. Experts now note that every aircraft in the world contains at least one part produced in Morocco.
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Infrastructure as Foundation
Morocco’s industrial strategy has been reinforced by two decades of infrastructure investment. The Tangier Med Port complex, one of Africa’s largest maritime logistics hubs, provides direct access to major shipping routes and has been instrumental in integrating Moroccan manufacturers into global trade networks. Free zones offer tax incentives including 0% corporate tax for the first five years and approximately 8% for the following 20 years, along with VAT exemptions and duty-free equipment imports. The AfDB’s companion report, the Africa Industrial Investment Barometer, found that North Africa attracted 56% of cumulative continental industrial investment between 2020 and 2025, with Morocco and Egypt leading the way.
South Africa’s Structural Headwinds
South Africa remains a major industrial power, but mounting challenges have eroded its lead. The country’s manufacturing sector suffered a 6.3% year-on-year contraction in April 2025, with automotive production plunging 13%. Load-shedding returned after ten months of stability, cutting around 3,000 MW and driving factory capacity below 50% in some sectors. Transnet, the state-owned logistics operator, faces $7.5 billion in debt and has struggled with missed freight targets and years of underinvestment. A 2025 industry report warned that South Africa’s manufacturing sector has declined in prominence over several decades, with concerns over deindustrialization mounting.
Continental Implications
Morocco’s ascent is not just about rankings. Stronger industrial performance affects tax revenues, employment, foreign exchange earnings, and positioning within global supply chains at a time when companies are reassessing production networks following geopolitical disruptions. The AfDB describes the continent as undergoing a “silent but irreversible” industrial transition, though progress remains uneven. Regional trade integration under the African Continental Free Trade Area will be critical in determining whether industrial gains in leading economies like Morocco translate into broader continental value chains rather than isolated national successes.
Sources: African Development Bank / Al Jazeera / Morocco World News / Africanews / AGBI / Assahifa / Yabiladi / Hespress / 7News Morocco / Finance in Africa / GlobeNewsWire / The News Agency
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