Morocco now leads Africa's industrial economy

Added: 2026-06-03

[00:00:00]Morocco has overtaken South Africa as Africa's leading industrial economy according to a new report by the Africa Development Bank marking a major shift in the continent's economic landscape.

[00:00:10]Well, for more on this, we're joined by trade specialist and president of the Africa Prosperity Fund, Yavi Maduray.

[00:00:17]Yavi, good evening. Thank you so much for your time. Really do appreciate it.

[00:00:20]What makes for a good industrial economy?

[00:00:24]>> Um, three things which Morocco won at, shall we say?

[00:00:30]sustained industrial upgrading, export diversification, and effective industrial policy implementation. They did what they said they were going to do. It didn't happen overnight. Um, it's been something that they've been working on for decades actually, but especially in the last decade. Um, so that clearly is what makes for great industrialization and great industrial policy.

[00:00:56]>> Yeah. Where's South Africa getting it wrong?

[00:01:01]Um Oliver, it's on a couple of levels.

[00:01:04]So I want to start out by saying um and you know we're doing it from a comparison perspective in terms of how we lost ground to Morocco and Morocco treated it as a national mission if I can put it in those terms. We treated it as inherited advantage, inherited legacy. It was something we've always been. So we kind of took it for granted if I can put it that way. Um and we we looked at we've we've we've been declining over the last couple of years.

[00:01:39]So every year was a little bit. It's just that the gap between the next um the next nation of industrialization was always larger. So we never really nobody really caught up with us until this year obviously. So where are we losing? we're losing in terms of things like and there's there's quite a long list if you look at the report but I'm just going to name a few obviously the power and energy instability and inconsistency we lost in terms of things like port congestion um we lost in things like industrial policy implementation so what we said we were going to do in terms of industrial policy we had the policies in place but in terms of implementation keyword um we didn't do so well. There's quite a long list. Um but those would I say those would be what I would say are the key um the key ones that you know come to mind especially because as South Africans we can figure that out you know we can think about it and go yeah that makes sense. Yeah, well Escom seems to be back on track this despite of course that uh multiple smelters in the country and mining companies are appealing uh for a new tariff structure from the minister of electricity and those negotiations are still ongoing. uh there's an intractable difference it seems around uh the term of duration for them to lock into and commit uh to that tariff structure and uh the minister says we want you to lock in for this to this for 5 years uh following if you can't penalties will follow and of course these companies are trying to push back at it that notwithstanding we were told that transnet uh especially on certain rail uh lines uh will go into certain concessions that will make those lines more efficient which means that it becomes a little bit easier and cheaper to export in this country told that ports would be uh uh would be improved and port efficiency uh was a big focus and all these network industries that President Ramakosa told us we were turning the corner on uh when he reflected on operation vulinta uh to reindustrialize South Africa we were told all of that was on track do you believe it to be the case >> yes and no [laughter] um so let's take the energy situation let's Take the whole um you know load shedding legacy. Load shedding legacy didn't happen you know in one year. It happened over many years and we have only just fixed we're we're you know we're celebrating we're in the afterlow of you know a year of no not no load shedding.

[00:04:16]um that is not how we need to look at it in terms of either industrialization or re-industrialization as as we're ting it. This is about the fact that we lost momentum and it's so it's a long time coming you know it's it's something that has happened as I was saying it was decreasing over time over time over time and it's now compounded um so it's not like we've we've moved backwards in one year or in a couple of months we've been declining we lost momentum those are that is the key words if I can put it in put it in those terms in terms of reindustrialization if we Look at the gap that was then created in us losing momentum. That gap then needs to be closed. So that gap is not going to happen also or the closing of that gap is not also going to happen overnight.

[00:05:09]And therefore I would think this whole re-industrialization term. It's basically taking us back to what we you know what we had what we were when we were in the throws of full industrialization.

[00:05:22]This is now what we have to get back to.

[00:05:24]So when we say um re-industrialization, for me that is what it's about. It's about gaining back our momentum. It's not necessarily saying we're looking at other sectors or we're trying new things. This is about the fact that we've lost momentum. We now need to reclaim it and regain what we have lost.

[00:05:46]And you know to use a to use a a really um horrible term so to speak. Um I think this this particular report gave us a snot clap so to speak in terms of us we took it for granted being the you know it comes out of my mouth my mouth so often. Um you know South Africa is the most industrialization industrialized nation on the continent. It comes out of us so easily that now we literally have to sit back and say okay well not so much. So it's not like South Africa is not industrialized. Please I don't want us to think that. On the on the other hand it's just that we've lost momentum and we haven't necessarily focused um as on forward and focused on growth as we should have. as the momentum decreased, we kind of let it happen and thinking will always be number one.

[00:06:40]>> Well, we're going to have to leave it there. Thank you so much for your time and your insights on this. Y really do appreciate it. Yavi Mudurai is uh a trade [music] specialist talking to us there uh on that development. South Africa is now no longer most industrial economy on the continent.