Industrialization: Morocco is the leading industrial economy on the African continent, according to the African Development Bank
Morocco now ranks first among Africa’s industrial nations. This is according to the Africa Industrialization Index (AII) 2025, published by the African Development Bank (AfDB) on the sidelines of its Annual Meetings.
For the first time since the index was launched in 2010, the Kingdom has overtaken South Africa. This achievement is driven by sustained industrial upgrading, export diversification, and a robust industrial policy.
The automotive, aerospace, agribusiness, renewable energy, and phosphate sectors were the main drivers of this growth. This outcome reflects years of massive investment in infrastructure, training, and industrial zones—notably Tangier Med and Kenitra—as well as increasing integration into global value chains.
The AII 2025, which assessed 54 African countries over the 2010–2024 period, notes that 41 countries improved their industrialization scores, bringing the continent’s overall progress to 6%. The most significant gains were seen in the least developed economies, a sign of ongoing convergence.
However, structural disparities persist. Africa still accounts for only 2% of global manufacturing output and 1.4% of manufacturing exports. Per capita manufacturing value added remains below pre-2014 levels. The continent’s industrial integration remains weak: intra-African trade accounts for only 14.4% of total trade.
Published alongside the first African Industrial Investment Barometer (AfIIB), developed by WITBA Invest SA and Trendeo, the report highlights that North Africa dominates investment across the continent. The region attracted 56% of cumulative investment flows between 2020 and 2025, with Morocco and Egypt leading the way.
Both studies highlight key drivers: access to reliable and competitive energy, cross-border infrastructure, long-term financing in local currency, technical training, and harmonization of standards. The AfIIB also calls on African industry to commit to decarbonization now, lest it face penalties from the carbon border adjustment mechanisms being prepared by the EU and the United States.
It should be noted that the 61st Annual Meetings of the AfDB Group and the 52nd Annual Meetings of the African Development Fund are being held through May 29 in Abidjan, under the theme “Mobilizing Large-Scale Resources for Africa’s Development Financing in a Fragmented World.”
Further the report ranks Kenya as the most industrialized economy in East Africa, ahead of its neighbors in the region, including Uganda, Tanzania, and Rwanda.
