According to Bryan Dean, CEO of Dragonfly Aerospace, the world’s leading provider of Earth observation data, South Africa’s NewSpace (private space) companies are leading the way when it comes to the African space race. And they are doing so despite a lack of government funding.
The country has Africa’s most advanced spacecraft ground segment, boasts 70 different antennas on the ground station, and is home to Africa’s only space weather centre.
South Africa’s NewSpace industry is thriving, just at a time when market demands for space-enabled services, such as solutions to environmental and agricultural issues, are growing.
The value of the African space industry totalled £6.10 million in sales in 2019 and is expected to generate more than £8.5 million by 2024, presenting an enormously lucrative business opportunity for stakeholders. South Africa is looking to its space industry for economic reconstruction and recovery post-pandemic, as it is believed that the industry will generate many financial opportunities for the country and aid social development.
Fundraising, however, remains one of the most difficult challenges for African space companies, who rely mainly on equity investment, bootstrapping and angel investors to raise funds. Despite the challenge, the country’s NewSpace industry looks unstoppable: in 2018, South African-based Simera Sense, a space-focused subsidiary of Simera Group, raised £1.63 million from undisclosed angel investors, while in 2019, BeepTool, a Nigerian rural satellite and integrated TV whitespace connectivity network, raised almost half a million pounds from angel investors.
South Africa’s space budget primarily covers the National Space Agency and its astronomy programmes. For instance, in August 2020, the South African Government announced £217 million in funding for a space hub through the Space Agency.
Globally, a new era is emerging, characterised by private sector-led efforts towards the commercialisation of space. South Africa, a pioneer in this movement, is at the forefront, flourishing not because of government backing, but in spite of it.
