How Africa’s space economy is developing

Interest in space is growing in African countries – the development of this industry not only opens the way to understanding the Universe, but also improves the economy of the continent

Africa’s space economy is growing at a rate exceeding that of the entire continent’s GDP. In 2021, the African space industry was estimated at $19,5 billion, and by 2026, according to forecasts, it will grow to $22,6 billion. In total, 19 thousand people work in the industry, of which 11 thousand are employed in government positions. In 2021, government contributions to national space programs increased by 81% compared to 2019, from $289 million to $523 million.

Among the main goals of this rapid development of the space industry are the democratization of space, the development of new propulsion systems and launch technologies, human development and local and international space partnerships.

The main directions of the space industry in Africa

Development of satellite technologies

Space technologies are closely related to the quality of everyday life: for example, the coverage of satellite communications depends on how developed this sector is in a region. In Africa, fixed satellite communications (FSS), mobile satellite communications (MSS) and satellite television account for the bulk of the space economy. The largest revenues and subscriber base are from large satellite television operators – DSTV, Canal + Afrique and StarTimes. The development of satellite communications will help bridge the digital divide in Africa.

It is more profitable to produce small satellites, rather than large ones, primarily because of the high cost of manufacturing and the long development of large satellites. Thus, since the first launch of the small SUNSAT satellite in 1998, Africa has spent only $188 million on their production. At the same time, small satellites account for 66% of all satellites produced on the continent. The possibilities of small satellites are not limited: for example, they can be used for the Internet of things (IoT), in weather forecasting systems, for monitoring agriculture. All these applications should stimulate the socio-economic and environmental development of Africa.

In the satellite component manufacturing segment, a downward trend was observed in 2021. This is due to the fact that some companies closed while others were busy marketing their first products and had not yet begun to generate income. However, more African companies are beginning to expand into satellite systems, launchers and propulsion systems, which means that satellite production in Africa will only grow in the coming years.

Earth Observations and on Earth

Another important area of ​​the African space economy is Earth Observation or Earth observation. EO is a collection of information about the physical, chemical and biological properties and systems of our planet. Typically, this data is obtained by remote sensing or by sensors on ground or airborne platforms such as weather balloons and weather stations. Collected data can be resold, converted into geospatial and remote sensing solutions, offered new agricultural services, and launched EO training and certification courses.

The ground segment, according to the authors of the report, has great potential. This is an astronomical infrastructure that includes telescopes and other equipment, as well as satellite ground stations. Nearly all space missions—scientific, commercial, military—use ground-based systems for launch and orbital operations.

New Democratic Space

According to the report, 2022 NewSpace companies will operate in 31 countries in Africa in 272, which will begin to make space more accessible and democratic for the region. These companies are promoting innovative ways to use space technology in manufacturing, medicine, transportation, logistics and other areas. NewSpace companies mainly provide goods and services to businesses (B2B) or direct to consumers (B2C), but sometimes they also work with governments. In addition, in most African regions, private companies use space infrastructure built by governments.

Development of human capital

All sectors of the space industry in Africa are now short of qualified personnel. Progress is also slowed down by the lack of infrastructure at various levels of education. But human development is one of the key areas of the African space sector right now. The state and private companies are actively investing in improving the education and training of personnel, building the necessary infrastructure, and creating conditions for international cooperation. All this will create a more reliable national space ecosystem in Africa in the future.

Who is driving the African space industry forward

DragonFly Aerospace, South Africa

This South African space company builds compact, high-performance devices and satellites designed to take large images of the Earth from space. These satellite cameras take very high resolution images, so you can always get accurate information about the state of the planet’s surface: forests, ice, oceans and agricultural fields.

SCS Space, South Africa

It is a privately held company founded in 2009 that was responsible for launching South Africa’s first commercially developed nSight-1 nanosatellite. It was built on the basis of the innovative SunSat and SumbandilaSat microsatellites. Now SCS Space advises and assists other companies with the launch of new satellite missions. The team also provides engineering services in the space area.

Omarichet, Ethiopia

This is a startup from Ethiopia that specializes in the development of nanosatellites for communication and navigation. Any satellite weighing less than 10 kg is called a nanosatellite: it is the size of a shoebox, but it is not inferior in power to an ordinary one. The mission of the startup, according to its creators, is to launch a constellation of nanosatellites into low Earth orbit, as well as enable entrepreneurs, researchers, governments and companies to use space technology as a tool to achieve the most important goals of mankind. We are talking about food security, affordable housing, safe production and affordable healthcare.

Eurêka Géo, Cameroon

Eurêka Géo is a professional training institute that trains R&D professionals in the use of EO data. The main segments in which the company operates are Earth observation, navigation and positioning, astronomy and space sciences.

Egyptian Space Agency, Egypt

The space agency in Egypt was established in 2019. Since then, the country has launched the EgyptSat-2A satellite for remote sensing of the Earth, as well as two cubesats (miniature satellites) and the TIBA-1 geostationary space communications satellite. In May 2022, the Egyptian government announced plans to build an entire space city. It will be located in Cairo. The 50-hectare complex of 23 buildings will house the Egyptian Space Agency, the African Space Agency, a satellite assembly plant, satellite monitoring and surveillance stations, a space museum, the Egyptian Space Academy, an Integration and Testing Center, a Center for the Design and Development of Space apparatuses and library of space researches. Construction is scheduled to be completed in 2026.

Botswana International University of Science and Technology (BIUST), Botswana

In December 2020, the President of Botswana announced the launch of an ambitious satellite project, in which the country will develop its own space program. It will aim to launch a 2024U nanosatellite in 3 for Earth observation. The program involves further launches of larger satellites such as 6U and 12U to create a constellation. This program will be implemented at the Botswana International University of Science and Technology (BIUST) in collaboration with regional and international partners.

National Space Exploration and Development Agency (NASRDA), Nigeria

NASRDA was established in 2001 with an initial budget of $93 million. In May 2006, Nigeria adopted an expanded national space program. Nigeria became the third African country after South Africa and Algeria with its own satellites. The first of them – NigeriaSat-1 – was built by the British company SSTL with the participation of scientists from Nigeria. It was launched on September 27, 2003 on a Russian Cosmos-3M launch vehicle from the Plesetsk cosmodrome. Earth remote sensing satellites NigeriaSat-2 and NigeriaSat-X of the same production were launched on August 17, 2011 on the Ukrainian Dnepr launch vehicle from the Russian Yasny cosmodrome.

Libyan Center for Remote Sensing and Space Sciences (LCRSSS), Libya

LCRSSS was founded in 1989. The organization is engaged in research in the field of remote sensing, space and seismology and consists of 5 research stations. LCRSSS is headquartered in Tripoli and employs approximately 300 people.