Morocco is at the top of the African economy for the first time Story

Abidjan, Ivory Coast – Morocco has topped the list of African economies for the first time, overtaking South Africa, which has held the top position since 2010, according to a new report by the African Development Bank (AfDB).

The bank’s 2025 Africa Industrialization Index ranked Morocco at 0.8415, slightly ahead of South Africa’s 0.8396 points, reflecting what the AfDB described as long-term industrialization, international diversification and effective implementation of industrial policies.

The report said, South Africa is still one of the leading industrial economies, but has been slowly declining for a long time in the competitiveness of the industry. The result decreased from 0.8819 points in 2010 to 0.8396 points in 2024.

The index measures industry growth in three main areas: industry performance; direct drivers such as finance, infrastructure, education and access to income; and other factors, including business environment, regulations, government debt and inflation.

Arab countries dominate the rankings

Egypt ranked third in Africa with a score of 0.7827, followed by Tunisia at 0.7760. Algeria ranked sixth with 0.6661, which means that four Arab countries are among the top six economies in the world.

The report described Morocco, South Africa, Egypt and Tunisia as the middle-income countries in Africa, leading many other economies on the continent. Mauritius at number 5, followed by Algeria, Swatini, Senegal, Namibia and Ivory Coast to complete the top 10.

North Africa remained the most developed region in Africa in 2024 with a score of 0.6891, ahead of Southern Africa at 0.5850. Central, West and East Africa followed.

Most North African countries performed better than the global average, with the exception of Libya and Mauritania, which fell into the middle and middle ranks, respectively.

Uneven industrial progress

Although the rise of Morocco is a change that has been recorded by many countries, the report said that industrial development in Africa as a whole is progressing slowly and unevenly.

Forty-one of the continent’s 54 countries improved their scores between 2010 and 2024, but only 24 improved their ranking, while five countries remained in the same position.

The industry average interest rate rose from 0.5134 in 2010 to 0.5445 in 2024, an increase of 6 percent. The number of countries increased by 6.4 percent during the same period.

Africa’s gross value added (MVA) rose from $285bn in 2020 to $351bn in 2025. However, the continent still accounts for less than 2 percent of global output and only 1.4 percent of global trade.

MVA per capita in Africa will reach $226.7 in 2025, down from the 2014 average of $254.9.

Weak regional integration

The report linked Africa’s weak industrial growth to fragmented markets and limited regional integration.

Trade between Africa is only 14.4 percent of the continent’s total trade between 2022 and 2024, compared to 60 percent in Asia and 57 percent in Europe.

According to the AfDB, the problem goes beyond prices and includes non-tariff barriers, weak infrastructure, different technical and administrative standards, and the underdevelopment of regional supply chains, which limit the ability of African companies to expand their production across borders.

The bank said the Africa Continental Free Trade Area (AfCFTA) could be a major tool for industrial development if the continent can move from “trade integration” to “production integration” by linking infrastructure, industrial policy, investment and regional value chains.

The AfDB estimates that the successful implementation of the AfCFTA could increase African investment by around 7 percent by 2035 and generate $450bn in value added.

Intra-African trade is also expected to increase by 60% in agriculture and food, 48% in manufacturing and 34% in services by 2045.