According to the United Nations Industrial Development Organization (UNIDO) Competitive Industrial Performance (CIP) Index for 2025, Morocco has overtaken South Africa to become the most industrialized economy in Africa. The index measures countries' ability to produce and export manufactured goods competitively.
Morocco's rise is attributed to its growing automotive, aerospace, and electronics sectors, as well as investments in renewable energy and infrastructure. The country has attracted foreign direct investment from companies like Renault, Stellantis, and Boeing.
South Africa, historically the continent's industrial leader, has seen its manufacturing sector decline due to structural challenges, including energy shortages and logistical bottlenecks. However, it remains a major player in mining and heavy industry.
The UNIDO report highlights that Morocco's industrial output now accounts for a larger share of its GDP and exports, driven by policies aimed at boosting local value addition and technology transfer. The shift reflects broader trends of industrial diversification in North Africa.
