On January 30, 2024, Space in Africa hosted the fourth instalment of its webinar series, “An Outlook of the African Space Industry: What to Look Out for in 2024.” The webinar comprehensively analysed the diverse landscape characterising the African space industry as it transitions into 2024. The discussions centred around the dynamic evolution of the African space industry, underscoring its remarkable growth and the various developments propelling this momentum.

The event drew participants from a wide range of industries, including representatives from Earth observation, satellite communication (satcom), astronomy, and satellite component manufacturing segments. The primary objective was to spotlight anticipated milestones that could redefine the African space industry and scrutinise critical trends emerging as crucial factors shaping the trajectory of the African space ecosystem.

Check here to watch the webinar.

Esteemed speakers at the event included Prof Paul Baki, a Professor of Physics at the Technical University of Kenya, who provided insights into astronomy. Bruno Henrion, the Chief Technology Officer and Chief Commercial Officer of Rascomstar, shared perspectives on Satcom. Johann Du Toit, Co-Founder and CEO of Simera Group & Simera Sense, contributed insights into satellite component manufacturing. Stefan de Klerk, the Chief Financial Officer of Pinkmatter, discussed Earth observation (EO). Each speaker represented a key industry segment, facilitating tailored discussions for each sector. Mustapha Iderwaumi, a senior analyst at Space in Africa, moderated the webinar.

Key Takeaways from the Event

While expressing his views on the challenges and opportunities faced by African satellite operators and service providers due to the emergence of a multi-operator business model for satellite communication (satcom) operators, Bruno highlighted that a few years ago, the launch of High Throughput Satellites (HTS) was anticipated to revolutionise the satellite communication landscape. However, the expected revolution did not materialise as HTS proved powerful but had limited coverage. Subsequently, the focus shifted to Low Earth Orbit (LEO) satellites, with scepticism about their effectiveness. Elon Musk’s investment in Starlink, a LEO satellite constellation, exceeded expectations. With over 3000 satellites, Starlink successfully provided low latency and affordable internet. Other companies like Telesat, OneWeb and Amazon are following suit with their constellations. This rapid development has surprised geostationary satellite operators, altering the telecommunications landscape in Africa. The emergence of constellations like Starlink has transformed broadband internet accessibility, especially for consumers. Amazon’s planned entry in the next two years is expected to popularise satellite internet further due to robust marketing efforts. The significant shift in 2023 is anticipated to continue in 2024, primarily impacting consumer broadband rather than government or TV sectors.

When responding to the question about the evolution of supply chain dynamics for satellite components and the challenges and opportunities manufacturers encounter in ensuring a strong and dependable supply of components for satellite production in Africa, Johann emphasised the positive aspect of being part of the satellite component supply chain in Africa, highlighting the opportunity for manufacturers to compete on a global scale. He acknowledged the success of companies in South Africa supplying to a worldwide audience, emphasising that the world serves as a marketplace for those who can deliver standardised products and value. However, Johann also discussed the challenges manufacturers face in Africa, particularly the ongoing impact of COVID-19 and global conflicts on supply chains. He pointed out the stress these disruptions can cause, especially for startups navigating the complexities of a global environment. 

One notable concern raised by Johann was the influence of regional conditions and the involvement of public funding in missions. He mentioned the complexities associated with participating in mega constellations funded by regional bodies, diverting attention from technological advancements to navigating intricate financial structures. Returning specifically to Africa, Johann concentrated on the global market, noting that while it’s not a self-fulfilling prophecy that local support will never happen, the current reality is that the demand for larger constellations and serious missions is not prevalent in Africa. Until a substantial local need emerges, the industry in Africa will continue to prioritise supplying the global market rather than concentrating on local endeavours.

In response to the question on the most effective collaboration among key stakeholders, including government, space agencies, private companies, and others, to build the necessary data systems and expertise for utilising the increasing EO data for sustainable development in Africa, Stefan discussed the roles and mandates of three major stakeholders in the context of collaboration: academia, industry, and government. He highlighted academia’s flexibility and role in providing a skilled workforce, creating experts, and conducting R&D for industry. However, academia relies on government funding.

In contrast, industry focuses on identifying opportunities, turning them into profits, sustaining business, and creating employment opportunities. Conversely, the government sets policies, enforces governance systems, allocates budgets, and invests in infrastructure to create an enabling environment. Furthermore, Stefan emphasised the need for a collaborative framework accommodating all stakeholders with defined roles and responsibilities. He stressed the importance of formulating and communicating a shared vision, citing the African Space Agency as an example. Funding, especially within Africa, was identified as a significant challenge, with the government as a potential anchor tenant.

Addressing hurdles like broadband connectivity, Stefan called for policies and regulatory frameworks promoting data sharing while taking ethical and security considerations into account. He emphasised leveraging existing relationships to learn from experienced stakeholders and the importance of capacity building in the African context. Recognising different countries’ varied progress within the continent, Stefan highlighted the need for tailored collaboration based on each country’s evolution.

When responding to the inquiry about the affordability of satellite broadband service for developing African states and potential solutions, Bruno emphasised the critical issue of affordability in satellite broadband services for developing African states, whether operating in GEO or LEO satellites. He highlighted two distinct markets: retail, where low-cost services comparable to radio or fibre are crucial, addressed by LEOs, and the corporate/government sector, seeking stable and secure services, primarily addressed by GEO satellites at a higher cost. Bruno stressed the importance of regulators in ensuring fair competition and adherence to rules, citing the need for stronger control to prevent unauthorised cross-border usage. While he acknowledged examples of affordable solutions in small villages sharing terminals, he underscored regulators’ challenges in balancing the market for local and international companies. Bruno expressed optimism that with proper regulatory control and market understanding, satellite broadband could become more accessible even in marginalised communities.

In addressing the question regarding the impact of the regulatory environment on satellite component manufacturing in Africa and suggesting changes or improvements to foster further growth in this sector, Johann shared insights into the regulatory environment, particularly in South Africa. He acknowledged the functional system but highlighted complexities and numerous regulations tied to product components, requiring precise paperwork compliance. While expressing satisfaction with the export process, he emphasised the need for digitalisation to streamline regulatory procedures, citing the current paper-based and often time-consuming nature. Johann advocated for a more transparent and easily accessible platform for companies to stay updated on regulatory changes, reducing uncertainties during the product development phase. He pointed out the challenges of keeping abreast of evolving regulations and suggested a dashboard-like system for clearer visibility into approval processes. Johann recognised the positive aspect of standardised technology in the satellite industry but stressed the importance of addressing the procedural challenges to ensure smoother company operations.

When addressing the question about the progress of government adoption of Earth Observation (EO) services and products, Stefan highlighted the significance of understanding the African perspective on space agencies, noting that approximately 24 of 54 countries have space agencies. He echoed the funding challenge, emphasising Bruno’s earlier comments on the affordability of broadband in rural or marginalised communities. Stefan expressed concern over the slow progress in providing broadband access to these communities, especially in addressing the crucial last mile of communication, a concern voiced by farmers participating in agriculture case studies. He discussed the hurdles faced by these communities in making broadband economically viable. Stefan identified positive steps, such as establishing the African Space Agency in 2023 and the African Union Agenda 2063, focusing on five key areas. However, he emphasised the need for collaborative efforts to overcome challenges and achieve momentum, acknowledging that the current uptake of broadband initiatives in Africa is not substantial compared to global developments in space.

In response to the question regarding the strategies, policies, and collaboration models showing the most promise for stakeholders across the public and private sectors to expand astronomy activities, training, and access, Professor Baki conveyed the significance of 2024 as a pivotal year for astronomy in Africa, hosting the International Astronomical Union’s General Assembly in Cape Town, South Africa. He emphasised the need for policies that align with societal concerns, advocating for social justice and ensuring that research initiatives support human development. Highlighting the role of policies in safeguarding the future deployment of astronomy infrastructure, he referenced South Africa’s Astronomy Geographic Advantage Act of 2007 as a model. Professor Baki stressed the importance of policies facilitating the return on investment and the commercialisation of research outputs to foster job creation and economic growth. He acknowledged the variation in policy needs among countries, contingent on their political climate. Additionally, he foresaw a digital revolution in Africa, driven by the big data science emerging from astronomy, contributing to developing skills in artificial intelligence and cybersecurity. Professor Baki envisioned Africa becoming a hub for big data science, leveraging its sizable youth population skilled in digital technologies.

Professor Baki also addressed a question about the implementation status of the African space policy’s education and capacity-building initiatives. He explained that while the African space policy has existed for some time, it is not the sole instrument for capacity building. Several ongoing initiatives, such as the Square Kilometre Array project coordinated by South Africa, have already contributed significantly to capacity building across the continent. Professor Baki highlighted the specific countries involved in the project, including Madagascar, Mauritius, Mozambique, Botswana, Zambia, and Namibia. These countries have received grants and infrastructure support for training in radio astronomy and developing high-performance computing facilities. He emphasised that capacity building is actively underway, and establishing the African Space Agency will complement and coordinate existing initiatives, bringing in new ideas as needed. Professor Baki concluded that when the agency becomes operational, it will build upon the ongoing efforts, enhancing coordination and potentially introducing innovative approaches to capacity building in Africa.

Johann also discussed the challenges and opportunities in satellite production in Africa. He emphasised that, unfortunately, there are no silver bullets in engineering, and breakthroughs require hard work, passion, and perseverance. However, he noted a positive shift in the availability of deep knowledge and training in baseline technology skills, which is being promoted in many countries. Johann highlighted the breakthrough of increased access to information, making technology knowledge transparent and available to passionate individuals interested in space. Another breakthrough he mentioned is the emergence of Newspace, which is funding new companies and breaking away from the previous dominance of a “big boys club.” While acknowledging that satellite production remains challenging and not easy, Johann pointed out the increased opportunities for participation and competition. In summary, he conveyed that while there are no easy solutions, there are more opportunities for innovation and participation in the satellite industry in Africa compared to a decade ago.

Johann addressed how governments can incentivise private investment and innovation in the satellite communication component manufacturing industry. He emphasised the critical need for foundational skills in STEM (Science, Technology, Engineering, and Mathematics) and entrepreneurship, asserting that proper education is non-negotiable for industry growth. Johann stressed that governments must believe in their industries and provide tangible support, such as offering off-take agreements to guarantee developed product purchases. This, he noted, would attract private investors willing to fund development with the assurance of future sales. He advocated a shift from the traditional model where governments own the intellectual property to a more collaborative approach, where private companies can secure development funds and retain IP rights. Johann highlighted the importance of the government acting as an anchor client, especially for niche technologies, providing funding for the initial project and creating startup opportunities. He encouraged starting small to gain traction, suggesting that even incremental support from the government can significantly impact the industry’s growth. In conclusion, Johann expressed passion for the topic and emphasised the continuous need for innovation and support to drive the sector forward.

Keep an eye on our website and social media platforms for updates on upcoming episodes in Space in Africa's webinar series.