Morocco overtakes South Africa in African Development Bank industrialisation ranking
The 2025 Africa Industrialisation Index reveals a structural shift in continental manufacturing leadership, with Morocco edging out South Africa. Despite regional gains, the report warns that fragmented markets and weak integration continue to constrain Africa’s share of global output.
Morocco has claimed the top position in the African Development Bank’s 2025 Africa Industrialisation Index, ending South Africa’s decade-long dominance of the ranking. According to the report, Morocco scored 0.8415 points, narrowly surpassing South Africa’s 0.8396. The bank attributed Morocco’s ascent to sustained industrial upgrading, export diversification, and the effective implementation of strategic industrial policies.
South Africa, which held the number one position since 2010, has experienced a gradual long-term decline in industrial competitiveness. Its score fell from 0.8819 in 2010 to 0.8396 in 2024. The index evaluates industrialisation across three dimensions: industrial performance, direct drivers such as investment and infrastructure, and indirect factors including the business environment and rule of law.
Egypt ranked third with a score of 0.7827, followed by Tunisia at 0.7760. Algeria placed sixth with 0.6661, meaning four Arab countries featured among the continent’s top six industrial economies. The report described Morocco, South Africa, Egypt, and Tunisia as Africa’s leading industrial quartet, maintaining a significant lead over most other economies. Mauritius ranked fifth, while Eswatini, Senegal, Namibia, and Ivory Coast completed the top 10.
North Africa remained the continent’s most industrialised region in 2024, recording a score of 0.6891 ahead of Southern Africa’s 0.5850. Most North African countries scored above the continental average, except Libya and Mauritania, which fell into the medium and lower-middle industrialisation categories, respectively. Central, West, and East Africa followed in the regional rankings.
Despite improvements in 41 of the continent’s 54 countries between 2010 and 2024, industrialisation across Africa remains slow and uneven. The continental average score rose by 6 percent, from 0.5134 to 0.5445, yet the continent accounts for less than 2 percent of global manufacturing output. Africa’s manufacturing value added increased from $285bn in 2020 to $351bn in 2025, but per capita output remains below 2014 peaks.
The report linked weak industrial growth to fragmented markets and limited regional integration. Intra-African trade accounted for just 14.4 percent of total trade between 2022 and 2024, compared with 60 percent in Asia. The bank identified non-tariff barriers, weak infrastructure, and differing regulatory standards as key challenges limiting the ability of firms to scale production across borders.
The African Development Bank highlighted the African Continental Free Trade Area as a potential driver for growth if implementation shifts towards production integration. The bank estimates that effective implementation could increase African incomes by about 7 percent by 2035 and generate up to $450bn in additional value, while significantly boosting intra-regional trade in manufacturing and services by 2045.
