Morocco has overtaken South Africa to become the leading industrial economy in Africa, according to the latest report from the African Development Bank (AfDB). The report, released in early 2026, highlights Morocco's significant progress in manufacturing, automotive, and aerospace sectors.
The AfDB's African Economic Outlook 2026 notes that Morocco's industrial output now accounts for a larger share of its GDP compared to South Africa, driven by investments in renewable energy, automotive production, and phosphate-based chemicals. The report does not provide specific numerical rankings but confirms the shift in industrial leadership.
South Africa, which had long held the top position, has faced challenges including energy shortages and logistical bottlenecks, which have hampered its industrial growth. Meanwhile, Morocco has benefited from political stability, infrastructure development, and free trade agreements with the European Union and the United States.
The AfDB report emphasizes that Morocco's industrial growth has been inclusive, creating jobs and reducing poverty, though challenges remain in terms of regional disparities and skills development. The bank recommends that other African countries learn from Morocco's experience in industrial policy and public-private partnerships.
