Morocco's Rise in Industrial Economy
In a remarkable economic shift, Morocco has outpaced South Africa, establishing itself as the largest industrial economy in Africa for the past year. This achievement can be attributed to Morocco's strategic development of its products, diversification of exports, and unwavering commitment to implementing growth-oriented policies, as highlighted in a recent report by the African Development Bank.
The African Development Bank, in its 2025 manufacturing index for Africa, noted that while South Africa remains an industrial powerhouse on the continent, it is experiencing a continuous decline in its industrial competitiveness. Reports by Bloomberg, as reviewed by Al Arabiya Business, emphasize this trend, indicating that South Africa's economic growth has stagnated, struggling to exceed an average GDP growth of 1% annually over the last decade.
A myriad of challenges, including persistent power outages, government corruption, political instability, and rising living costs, have deterred investors and hindered economic expansion. President Cyril Ramaphosa has previously estimated that South Africa requires up to 1.6 trillion rand (approximately 99 billion dollars) in public sector infrastructure investments, along with an additional 3.2 trillion rand from the private sector, to meet its infrastructure goals by 2030.
Furthermore, total fixed capital formation contracted in three quarters of the previous year, only showing signs of recovery in the last four months of 2025. This resurgence may indicate a willingness among businesses to invest in machinery and infrastructure, potentially enhancing the economy's productive capacity. The African Development Bank also pointed out that industrial capacity remains heavily concentrated in North and South Africa, which account for the majority of industrial production, export development, and industrial competitiveness across the continent.
As reported by alarabiya.net.
