The African space and satellite economy is projected to reach USD 22.6
billion by 2026, according to the 2023 edition of the Africa Space Industry
Annual Report published by Space in Africa, the authoritative on news, data and
market analysis for the African space and satellite industry.
Released during the third quarter of this year, the report showcases the remarkable
progress made by African countries within the space industry on the continent,
highlighting the impressive growth in Africa's space economy in 2022, which
reinforces the possibility of reaching the projected valuation of USD 22.6
billion by 2026.
Various segments have contributed to this growth, illustrating promising
advancements and opportunities.
The report acknowledges the financial commitment made by African
countries to grow their respective space industries. Although it did not give
specific figures, the report revealed that many African nations actively invest
in their space programs to support their growing space aspirations. However,
the amount allocated to fund space activities in 2023 was USD 425.01 million,
which represents a decrease of 14.96% and 18.77% compared to the revised
budgets of USD 499.76 million in 2022 and USD 523.3 million in 2021,
respectively.
It also explains that this decline in investment by African countries in
the space industry in 2023 is due to several factors, including fluctuation in
foreign exchange rates and the completion of national space projects. This
decline reflects a shift in government priorities, economic constraints,
reallocation of funds to address pressing national issues, and the evolving
nature of space programs as they move into different stages of development.
The Africa Space Industry Annual Report also highlights the success of
two NewSpace startups that secured pre-seed funding in 2022 to support their
research and development efforts and initial entry into the market.
Additionally, an increasing number of companies are well-positioned to take
advantage of monetary and non-monetary resources from foreign sources, enabling
them to scale up their businesses and gain greater visibility.
This progress has allowed many African NewSpace companies to transform
their business models significantly, expand their market reach, and capitalize
on emerging opportunities. The report notes that this has created an inclusive
and supportive environment for African NewSpace founders.
By: Nana Appiah Acquaye
