Morocco has been named Africa’s leading industrial economy in a new index released by the African Development Bank (African Development Bank), highlighting shifting patterns in investment, manufacturing growth, and regional industrial competitiveness across the continent.
The findings were published in the 2025 Africa Industrialization Index and the inaugural Africa Industrial Investment Barometer, unveiled during the Bank’s 2026 Annual Meetings in Brazzaville. Together, the reports assess how industrial development and investment flows are evolving across 54 African countries.
According to the analysis, Africa is experiencing a gradual but uneven industrial transition. While 41 countries improved their industrialization scores between 2010 and 2024, the continent still accounts for less than 2% of global manufacturing output, reflecting persistent structural challenges.
The index shows that Morocco has overtaken South Africa as the continent’s top industrial performer, driven by stronger industrial policy, export diversification, and sustained upgrading of manufacturing capacity. South Africa remains a major industrial hub but has seen a relative decline in competitiveness.
The reports also highlight deep regional disparities. North and Southern Africa continue to dominate industrial output and export sophistication, while East, West, and Central Africa lag behind in value-added manufacturing and industrial integration.
A key concern raised in the findings is that much of Africa’s industrial growth does not translate into retained value. Intra-African trade remains low, and many economies still rely heavily on exporting raw materials with limited local processing, weakening supply chain integration across the continent.
The Africa Industrial Investment Barometer notes that North Africa attracts the largest share of industrial investment, accounting for about 56% of cumulative inflows between 2020 and 2025. However, other regions show weaker “productive anchoring,” meaning fewer local linkages between investment and domestic industries.
Officials emphasized that improving industrial outcomes will require stronger infrastructure, better energy access, improved skills development, and more coordinated policy frameworks aligned with the African Continental Free Trade Area (African Continental Free Trade Area).
The African Development Bank said the goal is not only to attract investment but also to ensure that value is retained locally through deeper supply chains, regional integration, and industrial diversification.
