Global Economy
Morocco Overtakes South Africa as Africa’s Top Industrial Performer, According to ADB Index
For the first time since the Africa Industrialisation Index was launched, Morocco has edged past South Africa to claim the top spot on the continent’s industrial ranking. The African Development Bank’s 2025 report shows Morocco scoring 0.8415 versus South Africa’s 0.8396, reflecting a tighter but symbolic shift in industrial leadership. The ADB attributes Morocco’s gain to a higher‑value manufacturing base, broader export baskets and a suite of strategic industrial policies, while South Africa’s long‑term competitiveness shows signs of erosion despite recent improvements.
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Background
The African Development Bank (AfDB) releases an annual Africa Industrialisation Index (AII) that assesses how well African economies produce and export industrial goods. The index spans 54 countries and scores each economy on a scale from 0 (lowest) to 1 (highest).
2024 Scores
For the most recent year covered (2024), Morocco achieved a score of 0.8415, edging ahead of South Africa’s 0.8396. Although the gap is marginal, it marks the first time since the index’s inception in 2010 that Morocco has displaced South Africa from the top spot.
Why Morocco Advanced
- Higher‑value manufacturing: The Kingdom has shifted part of its production towards more sophisticated, higher‑margin industrial goods.
- Export diversification: Moroccan exporters are moving beyond traditional sectors, broadening the country’s trade basket.
- Strategic industrial policies: Targeted incentives, public‑private partnerships and infrastructure projects have reinforced the manufacturing ecosystem.
South Africa’s Position
South Africa remains the continent’s largest industrial power, but the index notes a gradual erosion of its competitiveness. Its 2024 score, while higher than the immediate post‑COVID years, is still below the pre‑pandemic level of 0.8819 recorded in 2010.
Other Leading Economies
- Egypt: 0.7827 (3rd place)
- Tunisia: 0.7760 (4th place)
- Mauritius: 0.6731 (5th place)
The top four economies are far ahead of the rest of the continent, with the fifth‑place score more than 0.1 points lower than the leaders.
Methodology Snapshot
The AII evaluates three dimensions:
- Industrial performance: Ability to produce and export industrial goods.
- Direct determinants: Private investment levels and manufacturing employment.
- Indirect determinants: Business environment, macro‑economic stability, security and infrastructure quality.
Continental Trends
Between 2010 and 2024, 41 of the 54 African nations improved their scores, lifting the overall continental performance by roughly 6 %. The median score rose by 6.4 %. Nevertheless, manufacturing remains the weakest link, with persistent challenges in production capacity, export sophistication and deep‑value industrialisation.