Morocco Emerges as the Top Industrial Economy in Africa
In a significant economic shift, Morocco has officially surpassed South Africa to become the continent's most industrialized nation as of last year. This transformation has been attributed to Morocco's strategic efforts in enhancing its product offerings, diversifying exports, and implementing policies that foster growth within the industrial sector, as highlighted in a recent report by the African Development Bank.
While South Africa has historically been a major industrial force in Africa, the country is currently experiencing a decline in its industrial competitiveness. The African Development Bank's 2025 African Manufacturing Index indicates that South Africa is grappling with multiple challenges, including prolonged electricity shortages, governmental corruption, political instability, and rising living costs. These factors have culminated in a stifling investment climate and a sluggish economic growth rate, with the nation's GDP averaging less than 1% annually over the past decade.
Challenges Facing South Africa and Opportunities for Morocco
President Cyril Ramaphosa has previously estimated that South Africa requires approximately 1.6 trillion rand (around 99 billion USD) in public sector infrastructure investments, alongside an additional 3.2 trillion rand from the private sector, to meet its infrastructure aspirations by 2030. Last year, three out of four quarters saw a contraction in gross fixed capital formation, although there was a slight uptick in investment during the final four months of 2025 as businesses began to allocate resources toward machinery and facilities, potentially bolstering the economy's productive capacity.
According to the African Development Bank, industrial capabilities remain heavily concentrated in North and South Africa, which collectively account for the majority of the continent's industrial output, export development, and competitive strength. Morocco’s ascension not only marks a pivotal moment in its economic journey but also reflects a broader shift in Africa's industrial landscape, with the potential for increased investment and growth across the region.
As reported by asharqbusiness.com.
