Morocco has overtaken South Africa as Africa’s leading industrial economy, according to a new report by the African Development Bank, marking a major shift in the continent’s economic landscape.

The bank unveiled its 2025 Africa Industrialisation Index during its Annual Meetings in Brazzaville, where it said Morocco climbed to the top through aggressive industrial upgrading, export diversification and long-term industrial policies.

The development signals a changing balance of economic influence in Africa, with Morocco increasingly positioning itself as a manufacturing and export hub connecting Europe, Africa and the Middle East.

While South Africa remains one of the continent’s biggest industrial powers, the report noted that the country has struggled with declining competitiveness in recent years.

The AfDB said North and Southern Africa continue to dominate industrial production and export sophistication, while many countries in East, West and Central Africa still lag behind in manufacturing capacity and regional production networks.