As in many other regions of the world, Africa is entering a phase in which space technologies are no longer merely an attractive option but a strategic necessity. Satellites and Earth Observation tools allow environmental, agricultural and infrastructure challenges to be tackled with previously unthinkable precision, while advanced connectivity technologies can now bridge the digital divides that still exist on a large scale across the continent. This trajectory coincides with significant economic growth across the entire sector. The new African New-Space Industry Report 2025 shows that companies in the sector generated USD 373.35 million in revenue in 2024, with over 300 firms operating across 36 countries. Although modest in absolute terms, the figure looks considerable compared with past data: from 2020 to 2025, the number of companies mapped has grown by over 800 percent, rising from 34 initially recorded to over 321 analyzed in the most recent report.

These companies, spread across five continental macro-regions, operate in six key segments of the space industry: satellite communications, Earth Observation, component manufacturing, astronomy, capacity development and satellite navigation. Of these, Earth Observation, component manufacturing and satellite communications are currently the most profitable. Projections indicate that, by 2030, the private NewSpace sector will reach USD 580 million, growing at a compound annual rate of 7.7 percent from 2024. African states, meanwhile, continue to support this development through targeted investments: in 2024, governments and the African Union Commission allocated USD 465.34 million to space activities (African Space Industry Annual Report, 2024). Although the overall budget was scaled back from the previous year (-27.86%), the available resources have been reallocated to objectives considered more strategic and essential to the continent’s development, such as preparations for the launch of new satellites and the rollout of infrastructure set to become operational by 2030. 

 

 

An agency that unites: the role of the AfSA

Against this backdrop, the creation of the African Space Agency (AfSA) marks a decisive step. Founded by the African Union (AU) to harmonize the space policies of member states, the Agency operates under the 2016 African Space Strategy, which directly ties the sector’s growth to building a more integrated economic, political and social future. Based in Egypt and operational since 2023, the AfSA does not intend to replace existing national agencies but to coordinate them, enabling them to share expertise and run joint programs. The Agency operates as space infrastructure continues to evolve, driven in part by the emergence of models such as Ground Station as a Service (GSaaS) and by the expansion of satellite constellations across various orbits—geostationary (GEO), medium (MEO) and, above all, low (LEO). These developments, driven largely by global operators, are helping to improve the performance of digital services—particularly latency—and to expand access to connectivity, including in rural areas. The gradual strengthening of the infrastructure ecosystem signals the continent’s entry into a new phase of development, increasingly oriented toward a ‘digital orbital’ dimension. 

 

 

The impetus of national space agencies

The consolidation of a true ‘African space policy’ is not confined to the continental level; it emerges from the work of individual countries that, for years now, have invested resources, tools and human capital in building technical and operational capabilities. The Algerian Space Agency (ASAL) and the South African National Space Agency (SANSA) are two of the most emblematic cases. SANSA brings together advanced scientific expertise, with infrastructure spread across Southern Africa and Antarctica, and operates Africa’s only space weather warning center, which monitors solar activity and protects communications, energy networks and navigation from possible risks.

ASAL, by contrast, stands out for the breadth of its applications across the country: from mapping informal settlements to urban planning based on satellite data and identifying areas for tourism expansion. These initiatives are complemented by the work of the Egyptian Space Agency (EgSA), which also hosts the headquarters of the AfSA, and by Nigeria’s National Space Research and Development Agency (NASRDA), which, among other things, takes part in the UN-SPIDER program (United Nations Platform for Space-based Information for Disaster Management and Emergency Response), through one of the UN Regional Support Offices (ROS) hosted in Egypt; further offices are based in Algeria, Kenya and, more recently, South Africa. 

 

 

 

 

New prospects and potential challenges

The picture that emerges is of a continent seeking to gain influence in the new global space economy. Not surprisingly, according to recent estimates, at least 21 African countries will launch their own satellites by 2026. As Temidayo Oniosun, Managing Director of Space in Africa, puts it: “Africa represents one of the most promising areas for the expansion of the contemporary aerospace sector.” One particularly striking shift is in business models. The African industry is moving away from simply selling images, bandwidth or components, and toward building integrated XaaS (Everything as a Service) platforms, where value lies not in owning hardware but in developing advanced software, analytical systems and smart solutions that combine space data and territorial information. This approach addresses concrete problems in agriculture, logistics, digital finance and urban management, with a direct and positive impact on development.

The African NewSpace Industry Report 2025 also shows that the geographical distribution of companies is skewed toward three regions—Southern, Eastern and Western Africa—which together are home to over 82 percent of the companies surveyed, while the remaining 18 percent are found in northern and central regions. This imbalance is both a challenge and an opportunity for industrial rebalancing. According to Mustapha Iderawumi, Senior Analyst at Space in Africa, the most profitable window for investing in the African space sector is open right now, before the ecosystem reaches maturity.

The continent offers a rare combination of advantages: a geographical location favorable to launch and tracking activities, a young and highly trainable workforce, a rapidly expanding private market, and technological infrastructure growing at an unprecedented rate. The 2025 African New-Space Industry Report confirms that Africa is not only expanding its space sector, but doing so in a structured way, with careful attention to the policies, funding models, governance mechanisms and industrial strategies needed to face international competition. The result is an environment that offers new opportunities for both investors and local talent, and that is gradually redefining the continent’s role in the future global orbital economy.

 

The article was published in the October 2024 issue of the monthly magazine Africa e Affari. The data have been updated to April 2025.