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Rabat – The African Development Bank (AfDB) announced the release of two reports, featuring Morocco as Africa’s industrial leader.
The bank said it launched the 2025 edition of its Africa Industrialization Index (AI) alongside the inaugural Africa Industrial Investment Barometer (AFIIB) on the sidelines of its annual meetings in Brazzaville.
WITBA Invest SA developed the reports with Trendeo, a statement from AfDB said, stressing that one of the key findings of one report shows that Morocco has overtaken South Africa as the continent’s leading industrial economy.
It attributed the situation to Morocco’s sustained industrial upgrading, diversification, and strong industrial policy.
The report shows that South Africa remains a continental powerhouse, but its competitiveness has declined steadily.
North Africa leads across three indices: diversification, attractiveness, and productive anchoring.
The region draws 56% of cumulative continental investment between 2020 and 2025, with Morocco and Egypt topping the list.
Morocco’s industrial sector has emerged stronger, with the country attracting hundreds of companies that choose the country not only for its stability but also as a gateway to Africa and Europe.
The sector spans different industrial aspects, from aeronautics to automotive textiles, and offshoring, among others.
The aerospace sector generated export revenues that amounted to over $2.54 billion in 2024. The industry attracts many companies, including global leaders that operate in the North African country.
Over 150 companies are operating in Morocco, with the country offering 0% corporate tax for the first five years and around 8% for the following 20 years. Morocco also offers exemption from VAT, duty-free equipment imports, in addition to subsidized land and utilities.
Morocco is now strengthening its aerospace sector with a plan to produce its first engine by 2027 or 2028.
Morocco’s automotive sector is also booming, with exports reaching $4.57 billion by the end of March 2026.
AfDB’s reports admitted Africa is undergoing an industrial transition that is “silent” but “irreversible.”
It acknowledged, however, that progress on the continent’s industry remains uneven and concentrated.
“Both reports share a single diagnosis: Africa’s industrial integration is low. Intra-African trade stands at just 14.4 percent of total trade, reflecting weak regional production linkages and fragmented industrial ecosystems,” the report said.
“Around 41 out of 54 African countries improved their industrialization scores, but the region remains as Africa accounts for less than 2% of global manufacturing output and just 1.4% of manufacturing exports”, the bank added.
