Morocco's Rise in Industrialization
According to the latest findings from the African Development Bank’s 2025 Africa Industrialisation Index (AII), Morocco has officially surpassed South Africa to claim the title of Africa's leading industrial economy. This remarkable achievement is largely attributed to Morocco's strategic advancement within the industrial value chain, a growing diversification of its export portfolio, and the implementation of a robust industrial policy that has fostered economic growth and stability.
The AII report was unveiled during a panel discussion at the AfDB Annual Meetings, coinciding with the launch of the inaugural Africa Industrial Investment Barometer (AfIIB), a collaborative effort between WITBA Invest SA and Trendeo. This comprehensive study, which spans from 2010 to 2024, reveals that 41 out of the 54 African nations have made strides in improving their industrialisation metrics, resulting in an overall performance increase of 6% across the continent. Notably, the most significant advancements were observed among the nations with historically weaker economies, suggesting a positive trend towards economic convergence across Africa.
Challenges and Future Directions for African Manufacturing
Despite these encouraging developments, the report highlights a concerning reality: Africa still accounts for less than 2% of the global manufacturing output and a mere 1.4% of manufactured exports. Alarmingly, the value added by manufacturing per capita has dipped below levels seen before 2014, indicating a pressing need for revitalization in this sector. The report emphasizes that while North and Southern Africa continue to excel in production and export sophistication, there is an urgent call for enhanced regional integration. This integration should extend beyond mere tariff reductions, focusing instead on establishing functional economic corridors, superior infrastructure, and harmonized standards, as outlined within the framework of the African Continental Free Trade Area (AfCFTA).
The AfIIB evaluates the state of African industrialization based on three critical indicators: industrial diversification, attractiveness, and productive embeddedness, which gauges how well investments are integrated into local economies. Notably, North Africa has emerged as the leader in all three categories, accounting for 56% of the continent's cumulative investments between 2020 and 2025, with Morocco and Egypt at the forefront of this growth. Furthermore, the AfIIB advocates for African industries to expedite their decarbonization efforts, highlighting the necessity to adapt proactively to avoid potential structural penalties that may arise from upcoming regulatory adjustments anticipated from Europe and the United States over the next decade.
As reported by en.yabiladi.com.
