In a remarkable shift in the African industrial landscape, Morocco has ascended to become the leading industrial economy on the continent, surpassing South Africa, as detailed in the recently released 2025 edition of the African Industrialization Index (AII). This significant announcement was made during the African Development Bank Group's (AfDB) 2026 Annual Meetings, held from May 25 to 29 in Brazzaville, Republic of the Congo. The AII, which evaluates the industrial development of all 54 African nations over the period from 2010 to 2024, underscores Morocco's robust industrial enhancements, its commitment to diversifying exports, and an effective industrial policy that has garnered positive recognition from various continental institutions.
The report acknowledges South Africa's status as a considerable industrial force in Africa; however, it highlights a concerning trend of declining competitiveness as new industrial hubs emerge across the continent. This shift is indicative of a broader narrative within Africa, where significant disparities in industrial development have come to light. Notably, North Africa and Southern Africa excel in production and export sophistication, while regions such as East, West, and Central Africa continue to lag behind in their industrialization efforts.
Alongside the AII, the African Industrial Investment Barometer (AfIIB) was introduced, a collaborative effort between WITBA Invest SA and Trendeo. This report evaluates African industrialization via three indices: industrial diversification, attractiveness, and productive integration. It reveals that North Africa leads in all three categories, drawing in an impressive 56% of total continental investment from 2020 to 2025, with Morocco and Egypt at the forefront.
According to the AfDB, the AII and AfIIB offer the most comprehensive insights to date regarding the nations that are rapidly industrializing, the investment destinations that are proving most attractive, and the value generated within the continent. However, both reports converge on a critical observation: Africa's industrial integration remains weak, with intra-African trade contributing a mere 14.4% of total trade, which indicates fragile links in regional production and fragmented industrial ecosystems.
Harouna Kaboré, President of WITBA Invest SA, pointed out a crucial insight: “The continent’s real deficit is no longer the absence of industrial strategies. Africa is now producing them in abundance. What is still lacking is execution discipline, continuity in public policies, and systemic coherence between financing, energy, infrastructure, human capital, governance, and industrial vision.” This analysis underscores the pressing need for cohesive and sustained efforts to enhance Africa's industrial framework and foster a more integrated economic landscape.
As reported by medafricatimes.com.
