Solving ground-level problems from 500km up: the rise of Africa’s space economy

Africa is among the regions that are most vulnerable to climate change despite contributing the least to global emissions. Space technologies now play a critical role in monitoring floods, wildfires, coastal erosion and desertification. Satellite systems can provide early warning signals before disasters occur, helping governments and humanitarian agencies respond more effectively. This is particularly important for flood and drought-prone regions where delayed information can cost lives and livelihoods.

Africa is increasingly using satellite and space-based technologies to monitor weather patterns and climate-related hazards.

The Space for Early Warning in Africa (SEWA) programme, a partnership between the African Union, the European Union and meteorological agencies, uses satellite data to improve forecasting and early warning systems for floods, droughts and severe weather events. The programme aims to save lives, protect livelihoods and strengthen climate resilience across the continent.^[2]

This initiative is particularly relevant to the growth of Africa’s space economy, as it demonstrates how space technology can address practical challenges on the ground.

Connectivity and digital inclusion

Millions of Africans still lack reliable internet access, especially in rural communities. Satellite broadband technology offers an opportunity to bridge this digital divide without relying entirely on expensive terrestrial infrastructure. Improved connectivity can support online education, telemedicine, e-commerce, digital banking and remote work opportunities. The AfSA and several African governments view satellite connectivity as essential to achieving the broader goals of digital transformation outlined in the African Union’s Agenda 2063.

Nigeria is one of the most active users of satellite technology for connectivity. Through NIGCOMSAT Limited, the country operates the NIGCOMSAT-1R satellite, which provides broadband, broadcasting and telecommunication services.^[3] Satellite connectivity is used to support rural internet access, e-learning initiatives, government digital services and banking connectivity in underserved areas. Nigeria also works with private satellite internet providers to extend broadband to remote communities where fibre networks are absent.

Amazon Leo, formerly Project Kuiper, has also applied for a 15‑year licence in Kenya to establish its first African satellite gateway, marking a direct challenge to Starlink’s current market dominance. Kenya’s advanced digital ecosystem makes it a strategic foothold, with the potential to reshape Africa’s broadband market if the licence is approved.^[4]

The role of the private sector

Importantly, the AfSA recognises that Africa’s space future cannot be built by governments alone. The private sector must play a central role in driving innovation, investment and commercialisation. This aligns with a growing recognition that the ‘NewSpace’ economy characterised by startups, commercial innovation and private sector participation is likely to shape Africa’s long-term competitiveness.

The market has long been marked by promise and frustration in equal measure. On one hand, it is sustained by a growing pool of private firms, academia and strong regional and international partnerships. On the other, as evidenced by a 2019 survey of the African Earth Observation (EO) private sector, commissioned by the African Union, the market has to navigate prohibitive data pricing, scarce infrastructure and fragmented regulations.

Private African space companies are already providing solutions in the form of satellite data analytics, drone technology, geospatial mapping, satellite manufacturing, connectivity services and climate intelligence.

Governments, the key stakeholders for satellite-based services in agriculture, disaster response and natural resource management, simultaneously regulate the sector, provide competing services in-house and route procurement to established foreign suppliers often through donor-tied contracts that exclude local firms by design. Many African space startups still face major barriers, including limited access to capital, weak investment ecosystems, inadequate regulatory frameworks, limited technical infrastructure and high operational costs.

Unlike traditional government-led programmes, private-sector-led projects (or public private partnerships) tend to advance, innovate more rapidly and create jobs more directly. Industry experts increasingly argue that governments should focus on creating enabling environments rather than overregulating emerging innovators and becoming commercial competitors with private sector actors. The future of Africa’s space economy may, therefore, depend less on state ownership and more on strong public–private collaboration.

Inclusion: women, youth and differently abled persons

A sustainable African space economy must also be an inclusive one. Female founders, young entrepreneurs and differently abled professionals disproportionately operate in the micro-firm segment, which bears the greatest survival risk. The micro‑firm segment refers to the category of very small businesses, typically employing fewer than ten people, which operate with limited resources, but play a vital role in local economies and entrepreneurship. A weak market does not fail all of its participants equally. Similarly, non-traditional players are an underutilised asset. By widening the definition of participants in the space economy and introducing market incentives that actively support women-led enterprises, youth-driven projects and adjacent-sector firms in adopting satellite data, the ecosystem can grow more inclusively and sustainably than through training programmes alone.

Africa possesses one of the youngest populations in the world, creating enormous potential for innovation and entrepreneurship. Young Africans are already building startups, participating in robotics competitions, designing nanosatellites and contributing to data science and artificial intelligence projects connected to space technologies. Youth-led ventures, including Ghana’s All Nations University Space Systems Technology Lab, have already designed and launched satellites, demonstrating that world-class aerospace capabilities can be developed locally. These achievements not only strengthen Africa’s space industry, but also inspire more young people to pursue careers in space science and engineering. Yet, significant gaps remain in regard to access and representation.^[5]

Women continue to be underrepresented in engineering, aerospace and space science leadership positions. Similarly, differently abled persons often face structural barriers to education, training and participation in technology sectors.

An inclusive space economy requires targeted scholarships and mentorship programmes, accessible science, technology, engineering and mathematics (STEM) education, inclusive workplace policies, disability-friendly innovation ecosystems and gender-sensitive investment strategies. The African Union’s broader policy frameworks increasingly recognise the need for space-derived benefits to reach women, youth and marginalised communities. If Africa’s space economy is to deliver meaningful socioeconomic transformation, it cannot remain limited to elite institutions or urban technology hubs. Organisations, such as Spacehubs Africa, support the growth of the continent’s space ecosystem by engaging with the public, publishing accessible educational resources and fostering dialogue on innovation and investment strategies. These initiatives help democratise knowledge, build capacity and connect stakeholders across the African space economy.^[6]

Funding and policy gaps

Despite strong momentum, Africa’s space sector continues to grapple with structural challenges. The satellite services market, although rich in potential, is constrained by high costs, fragmentation and limited infrastructure. Funding remains a major hurdle. In 2025, African governments collectively allocated about US$426m to space-related programmes, a modest figure compared to other global competitors. Public contracts are often episodic, leaving firms without continuity or financial stability. A company operating for six years may face the same insecurity as one just starting out. This dynamic produces small, project-dependent firms that struggle to invest in product development, retain skilled staff and attract growth capital. Private investment also lags behind other sectors, such as Fintech and e-commerce. Policy fragmentation compounds the issue, with many countries lacking clear national space strategies, licensing frameworks and regulatory structures.

Yet, Africa remains a hub of untapped business opportunities in the space economy. With its growing pool of innovators, expanding demand for satellite-based services and increasing regional collaboration, the continent is primed for investment. Strengthening funding mechanisms, harmonising policies and incentivising private capital will not only stabilise the sector, but it will also unlock Africa’s full potential as a competitive player in the global space economy.^[7]

Without harmonised regulations, cross-border collaboration and private investment become more difficult.

The state of the market: a sector on the rise

The NewSpace Africa Conference 2025 under the theme ‘Empowering Africa’s Economy through Space-Driven Innovation’, organised by Space in Africa in collaboration with the AfSA and the Egyptian Space Agency, marked the official inauguration of the AfSA, a landmark moment for Africa’s space governance and continental coordination.^[8] Beyond the inauguration, the event served as a pivotal platform for advancing Africa’s space ecosystem and showcasing the socioeconomic benefits of space technologies. Bringing together industry leaders, academics, national space agencies and investors, it fostered strategic dialogue on Africa’s active participation in emerging space markets, the adoption of innovative space technologies and the future of space governance across the continent.

The African space market shows strong long-term potential. The AfSA, in coordination with national space agencies and relevant line ministries, should establish a continental anchor procurement framework that commits government agencies as the first customers for qualifying satellite-based solutions. Procurement could remain technology-agnostic in order to source the best solutions from all relevant industries. This means that the AfSA should aggregate public demand, across agriculture ministries, disaster risk agencies, etc, and route those contracts to verified local firms rather than defaulting to foreign suppliers. This could follow a regional approach, as Africa is progressively moving towards becoming a single market. Designating ‘anchor markets’ that leverage a regional leader, such as Egypt in north Africa, South Africa in southern Africa, Ghana in western Africa, Kenya in eastern Africa and Rwanda in central Africa, will structure such coordination according to market maturity. Although designating anchor markets can entrench existing inequalities, it is important to acknowledge that certain countries attract disproportionate investment and talent due to existing ecosystem depth. The anchor model is designed to generate demand that flows outwards through cross-border market access programmes and regional procurement aggregation to smaller markets that cannot yet generate such demand independently.^[9]

International partnerships with organisations such as the European Space Agency are also contributing to institutional capacity development and technology transfer.^[10]

Importantly, Africa’s approach to space is development focused. Rather than prioritising prestige projects, the continent is largely focused on practical technologies that improve governance, resilience, economic participation and quality of life.

Conclusion

Africa’s space economy represents far more than satellites orbiting hundreds of kilometres above Earth. It represents a growing recognition that data, connectivity and technology can help solve deeply rooted developmental challenges on the ground.

From precision agriculture and climate resilience to digital inclusion and disaster responses, space technologies are increasingly becoming essential infrastructure for modern African economies. The establishment of the AfSA provides an opportunity to coordinate this vision at a continental scale. However, achieving meaningful success will require stronger private sector participation, inclusive policies for women, youths and differently abled persons, increased investment and harmonised regulatory frameworks.

The AfSA, therefore, has a critical role to play in the related legal harmonisation, policy coordination and continental standard setting that will impact the sector. Africa’s future in space will not be defined by symbolic launches alone. It will be measured by how effectively space technologies improve lives across the continent, especially for ordinary people facing everyday challenges on the ground.