Morocco Overtakes South Africa: Africa’s Top Industrial Economy Shift

Morocco has overtaken South Africa as the highest-ranked industrial economy in Africa for the first time, according to a report by the African Development Bank (AfDB). The findings, detailed in the 2025 Africa Industrialisation Index, mark the end of a period of dominance for South Africa, which had held the top position since 2010.

The index ranked Morocco first with a score of 0.8415 points, narrowly surpassing South Africa, which scored 0.8396 points.

According to the AfDB, Morocco’s ascent is the result of the effective implementation of strategic industrial policies, sustained industrial upgrading, and the diversification of its exports.

While South Africa remains one of the leading industrial economies on the continent, the report noted a gradual long-term decline in its industrial competitiveness. The country’s score in the index fell from 0.8819 points in 2010 to 0.8396 points in 2024.

Industrialisation Index Metrics

The African Development Bank utilizes three primary dimensions to measure industrialisation across the continent:

• Industrial performance: The core output and efficiency of the industrial sector.
• Direct drivers: Factors including infrastructure, education, investment, and access to finance.
• Indirect factors: The broader environment, including inflation, public debt, the rule of law, and the general business environment.

The African Industrial Quartet

The report identifies a leading group of four nations—Morocco, South Africa, Egypt, and Tunisia—described as Africa’s leading industrial quartet. These four economies maintain a significant lead over most other nations on the continent.

Arab nations showed a strong presence in the upper tiers of the rankings. Egypt ranked third in Africa with a score of 0.7827, followed by Tunisia in fourth place with 0.7760. Algeria placed sixth with a score of 0.6661, meaning four Arab countries are featured among the continent’s top six industrial economies.

Continental Rankings

Beyond the top four, the index identified several other nations completing the top 10 industrial economies in Africa. Mauritius ranked fifth, followed by Algeria in sixth. The remaining positions in the top 10 were held by Eswatini, Senegal, Namibia, and Ivory Coast.

The data published on May 28, 2026, highlights a shifting landscape in African economic productivity, where strategic policy implementation in North Africa has challenged the long-standing industrial leadership of the south.