Morocco has emerged as Africa’s most industrialized economy in 2025, overtaking South Africa for the first time in 15 years, according to the African Development Bank’s Industrialization Index.
The milestone marks the culmination of a two-decade industrial transformation driven by sustained public investment, expanding foreign direct investment, and major infrastructure projects. Central to this success has been the growth of the Tanger Med Port Complex, which has become one of the continent’s most important gateways for global trade and supply chains.
Morocco’s rise has been fueled by a deliberate strategy to diversify beyond traditional industries such as phosphates and automotive manufacturing. The country has built a thriving aerospace sector that now hosts more than 150 international companies, including Boeing, Airbus, Safran and Thales, with exports from the industry increasing sharply over the past decade.
The automotive sector remains Morocco’s largest export industry, supported by a competitive manufacturing ecosystem and production levels that now exceed those of South Africa.
The country is also rapidly positioning itself as a global hub for electric vehicle production. More than AUD 8.4 billion in Chinese investment has flowed into battery manufacturing, automotive components and EV supply chains. Projects include Gotion High-Tech’s AUD 1.8 billion battery gigafactory in Kenitra and the development of the Mohammed VI Tanger Tech City near Tangier Med, a vast industrial and free-trade zone expected to support production capacity of up to 500,000 electric vehicles annually by the end of 2026.
Morocco’s strategic location and trade agreements have strengthened its appeal to investors. Free-trade arrangements with China, the European Union and the United States provide manufacturers with efficient access to major markets at a time when Chinese EV exports face rising tariffs in Europe.
Beyond manufacturing, Morocco is expanding its leadership in renewable energy. By the end of 2025, the country had installed 5.5 gigawatts of renewable energy capacity, accounting for 45.4% of total electricity capacity. The government aims to raise the share of renewables to 52% by 2030 and 70% by 2050.
Supported by abundant solar and wind resources, Morocco is also pursuing ambitious green hydrogen projects. In 2025, authorities approved approximately AUD 49 billion in investments focused on green ammonia, low-carbon steel and sustainable industrial fuels aimed at both domestic and European markets.
The kingdom is further strengthening its position through its vast phosphate resources, estimated at around 70% of global reserves. Through OCP Group, Morocco has become a major contributor to global food security while expanding its role in supplying materials essential to the low-carbon economy.
In aerospace, Morocco’s growing importance was underscored by French manufacturer Daher’s decision to transfer part of its production from France to Tangier beginning in 2027. The move will support Airbus aircraft programs and deepen Morocco’s integration into global aerospace supply chains.
Meanwhile, Tanger Med is gaining recognition as a future hub for green maritime fuels as the shipping industry accelerates its transition toward low-carbon operations. Analysts believe the port’s strategic location between Europe, Africa and Asia positions it to benefit from growing demand for sustainable shipping services.
Morocco is also investing in human capital. The Royal Mansour Academy, set to open in September 2026, will train professionals for luxury hospitality, gastronomy and wellness sectors, supporting the country’s ambition to develop a higher-value tourism industry.
Together, these developments highlight Morocco’s emergence as one of Africa’s most dynamic industrial, energy and logistics centers, with growing influence across global supply chains and the green economy.
