South Africa’s Denel Overberg Test Range Projects Multi-Year Profitability
The Denel Overberg Test Range, South Africa’s premier facility for developing rocket testing and launch capabilities, is projecting sustained profitability over the next three years. This outlook is supported by a strong order pipeline and increasing interest in space-related capabilities, including prospective satellite launches. As a division of the state-owned defence and aerospace group Denel, the facility has played a central role in advancing the country’s ambitions toward developing sovereign launch capabilities.
According to Denel’s 2025–2026 Corporate Plan, which was recently tabled in Parliament, the facility is projected to generate a profit of ZAR 9 million(USD 511,000) in 2025/26, followed by ZAR 4 million(USD 227,100) in 2026/27, and ZAR 5 million(USD 283,900) in 2027/28. These projections are based on more than ZAR 400 million(USD 22.7 million) in planned sales over the next three years.
Supporting these projections, confirmed and prospective clients include the South African Department of Defence, Halcon, Diehl Defence (IRIS-T), Rheinmetall Denel Munition, Pronex, Milkor (for the Milkor 380 UAV), and the University of KwaZulu-Natal for its rocketry programme. The Republic of Singapore is also expected to return for its Brightfire live-fire exercise, having previously tested the RBS 70 missile at the range.
Additional potential contracts, although considered less likely, cumulatively are worth over ZAR 100 million (USD 5.67 million). These include ones being pursued with international organisations such as Canada’s International Test Pilots’ School, Aselsan, Paramount, the Brazilian and Vietnamese navies, the US and French armed forces, as well as several European rocket developers, including Skyrora and Rocket Factory Augsburg.
Satellite Launch Capability in Development
Looking ahead, Denel plans to develop sovereign space launch capacity through the Overberg Test Range(OTR). Efforts include upgrading the range to support satellite launches, tracking, and testing in partnership with the Department of Science and Innovation and the South African National Space Agency. With backing from these institutions, the Overberg Test Range is expected to be in a position to support a satellite launch by 2028. Denel also anticipates securing a three-year contract, valued at ZAR 16 million (USD 908,000) annually, with the University of KwaZulu-Natal to support space-related activities.
Denel’s Corporate Plan outlines several risks to the test range’s future, including a backlog in capital investment, critical skills shortages, and the ongoing effects of past underfunding during the company’s liquidity crisis. However, the company indicates it now has sufficient cash flow to maintain essential infrastructure and instrumentation. It also plans to address staffing gaps from the 2026 financial year onward.
Beyond Denel’s projections, the Aerospace Systems Research Institute (ASRI) at the University of KwaZulu‑Natal has made significant strides in establishing South Africa’s space launch capacity, a development that enhances the value of the Overberg Test Range. In October 2024, ASRI commissioned its first suborbital sounding‑rocket launch gantry at Overberg, capable of supporting hybrid‑propellant rockets like Phoenix and larger solid‑propellant vehicles from international partners. This facility has already supported record‑setting flights, such as Phoenix‑1B Mk II reaching an altitude of 17.9 km, Africa’s highest hybrid‑rocket launch to date.
ASRI’s efforts also include a ZAR 2.4 million CSIR grant to develop 3D‑printed combustion chamber components for their SAFFIRE liquid rocket engine as part of the South African First Rocket Engine programme. These advancements build toward the envisioned Commercial Launch Vehicle (CLV), with modelling and engine development showcased at South Africa’s inaugural National Space Conference. Together, ASRI’s infrastructure and technical milestones complement Denel’s plans, strengthening the Overberg Test Range as a comprehensive hub for both suborbital research and sovereign orbital launch development.
This article was originally published by The Defence Web on July 3, 2025. To read the full original article, click here.
The Elon Musk Factor
Recent statements from Elon Musk suggest that SpaceX is evaluating the Denel Overberg Test Range as a potential launch site for its SpaceX rockets. This interest could accelerate the range’s development, including attracting infrastructure investment, and further contribute to elevating South Africa’s positioning in the global space economy. If realised, this collaboration may hasten the construction of orbital launch pads, enhance telemetry and tracking systems, and support workforce development, creating ripple effects across the Western Cape’s aerospace, civil engineering, and logistics sectors. A potential collaboration with SpaceX would not only strengthen Denel’s commercial prospects but could also help establish the Overberg Test Range as a critical part of South Africa’s growing efforts to build its launch capability.