The state of the space industry in Africa

The space industry in Africa is on an upward trajectory, with significant progress made in recent years. The global space economy is valued at a staggering $469 billion, but Africa's share currently stands at $19 billion. To delve deeper into the current market trends in this sector, CNBC Africa spoke to Temidayo Isaiah Oniosun, Managing Director of Space in Africa. Oniosun shed light on some key aspects shaping the African space industry landscape. One of the notable highlights discussed was the increasing interest and investment from African countries in their national space programs. Presently, there are 21 African nations that have either established a space program or are in the process of setting one up. Collectively, these countries invest around $500 million annually in their space initiatives. The industry itself generates $19 billion in revenue, encompassing a spectrum of services ranging from global navigation systems to satellite TV services. Moreover, the proliferation of companies operating in the upstream and downstream space segments is noteworthy. Currently, over 300 companies are active in various sectors within the African space industry. Notably, there is growing political interest from global players like the US, Europe, and Russia in collaborating with Africa for space development. These collaborations aim to bridge the existing knowledge and skills gaps in the industry. Furthermore, the establishment of national space agencies and the development of space strategies are pivotal in advancing the space infrastructure in African countries. Rwanda stands out as a frontrunner in this domain, having successfully launched a satellite and formulated a national space policy and strategy. Addressing the crucial issue of the skills gap, Oniosun emphasized the importance of industry involvement and the need for more companies operating within the ecosystem to match the talent demand. While some African countries are actively training manpower for the industry, efforts are underway to enhance education systems to cater to the sector's specific needs. Space technology in Africa is proving to be instrumental in tackling various developmental challenges on the continent. From environmental monitoring to urban development and agriculture, space technology, complemented by emerging technologies like AI and machine learning, is driving solutions for socio-economic problems. In terms of funding and investor interest, there is a positive trajectory with African governments ramping up investments in space programs. The annual budget for space in Africa has witnessed nearly a twofold increase to $500 million, demonstrating the promising returns on investment. Foreign support, notably from China and the European Commission, is also contributing to the growth of space initiatives in Africa. Additionally, venture capitalists are showing interest in space technology startups, further fueling growth and innovation. The evolving landscape of the space industry in Africa signifies a promising future marked by increased collaboration, investment, and technological advancement. As the continent continues to leverage space technology for socio-economic development, the prospects for growth and innovation appear brighter than ever.