AFRICAN SPACE INDUSTRY ANNUAL REPORT 2019 Edition

Space in Africa

[Photo Credit: unsplash] AFRICAN SPACE INDUSTRY ANNUAL REPORT 2019 Edition AFRICAN SPACE INDUSTRY ANNUAL REPORT 2019 Edition

This report is written and produced by Space in Africa.

Points of Contact:

Temidayo Oniosun – Managing Director [email protected]

Joseph Ibeh – Senior Editor [email protected]

Published June 2019

24, Ekololu Street, Surulere 101283 Lagos, Nigeria (+234) 901 132 3795 [email protected] www.africanews.space

FIRST EDITION ii Introductory Notes Please respect our copyright – no sharing!

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A note on African terminology and language choices

This report has been written by English-speaking Africans and English is the principal business language of Africa. Yet, certain terms and phrases may seem unfamiliar to non-African English speakers. For example, the term “capacity building” is commonly used to refer to expanding the collective ability of a nation's private and public institutions to expand its space capabilities by using a combination of educational programs, facilities development, and foreign technology transfer; i.e., this is building the capacity for an African nation to grow its own space capabilities. In a related vein, this can be referred to as building “indigenous capability”, and there are frequent references to “indigenous” capabilities, without the kind of political overtone that word may have in other contexts. We have elected to maintain the lavour of African speech in our writing so that you, the reader, will recognize and understand these phrases when dealing with the industry in Africa.

A note on African political context

It may state the obvious to say that Africa is a big place. But big it is: 54 countries, over 1,500 languages, and over 1.2 billion people. Trying to discuss the African space industry as a whole will necessarily require some occasional simpliication to grasp the task. And the political and business traditions are quite diverse. For example, the South African government has a parliamentary system with terminology that will seem somewhat to a Dutchman or American, while Angola has a Presidential Republic where the President may implement a step towards a satellite launch by signing a decree, and that word “decree” would sound odd to the Dutchman or American. Here, too, we are electing to use the natural terminology of the various African nations with the understanding that some concepts may not seem familiar to the reader.

Questions and comments

Readers who have purchased this report and would like any clariications of the material are invited to email us at [email protected] for assistance. iii

Preface s a boy living in Nigeria, I used to watch the stars at night and wonder how they got there. Perhaps the most popular answer I got was that they were put there by AGod, but that was, for some reason, vastly unsatisfying. I wanted to know how God did it. So, when it was time for me to apply to university, opting for a course of study that focused on the skies was an easy choice.

For the past six years, I have been fortunate to work in the thicket of Africa's burgeoning space industry. For centuries, Africans have been fascinated with the heavens, reading and studying weather patterns, in order to seek the mind of God. But much of the continent missed out on the scientiic revolution that swept through America and Europe in recent centuries and put human boots on the moon.

Now Africa's space industry is undergoing a renaissance. Across Africa, governments are investing in meaningful space programmes, revving up the continent's capacity to see beyond pale clouds and harness the inherent power of space technologies.

Modern space technologies have the ability to help Africa solve critical problems in agriculture, security, information dissemination, and other sectors. Already, some countries have started to beneit beyond the obvious impact of satellite broadcasting. In Mali, satellites are helping nomadic herdsmen ind water for their cattle. In Angola and Rwanda, satellites are used to connect rural classrooms to the internet. In Kenya, a new satellite is used to monitor forest logging activities.

At Space in Africa, we are bullish about the role of Africa in space in the coming years. This is the new era. Now is the time for Africans, formerly thought too impoverished to bother about space technologies, to play their part in this very essential domain.

We have created this African Space Industry Annual Report – 2019 Edition to be the irst- of-its-kind, broad and deep look at the history and future of the African space industry. We encourage you to set a few hours aside to read this report in its entirety to ground your understanding of the industry in Africa.

There is space for all. Come join us.

Kwa Afrika kubwa zaidi (To a Greater Africa)

Temidayo Oniosun Founder & Managing Director Space in Africa iv

About emidayo Oniosun is the Founder of Space in Africa, and the Regional Coordinator (Africa) for Temidayo Tthe Space Generation Advisory Council, where he is leading African students and young professionals in the creation of international space policy, ensuring that African views are considered in key policy making at the United Nations Ofice for Outer Space Aﬀairs. As a YouthMappers fellow, he leveraged open-source software and geospatial technologies to address chronic development problems, such as solving urban waste problems, for which he was featured by USAID.

Temidayo is a recipient of the International Astronautical Federation's Emerging Space Leaders Grant . He has been recognised as one of the World 24 Under 24 Leaders and Innovators in SPACE and STEAM by The Mars Generation and is one of the recipients of the 35 Under 35 space industry recognition award by the International Institute of Space Commerce.

Temidayo was in the NewSpace People global ranking of the top 200 Movers and Shakers in NewSpace and has been featured and quoted in Forbes, BellaNaija, ChannelsTV, Guardian, NewSpace People, ROOM, SATNEWS, and USAID for his work in the African space industry. Temidayo is a TEDx speaker.

Temidayo Oniosun Founder & Managing Director, Space in Africa Table of Contents vii

Satellite Programmes and History 1.1 Country Overview of Satellite Programmes 01 1.2 Other Ongoing Satellite Programmes 1.3 Projections for Future Satellite Programmes 1.4 Satellite Distribution by Weight 1.5 Satellite Distribution by Mission Type 1.6 Sources of Funding for Satellite Projects in Africa

Technology Development 2.1 Capacity Building 02 2.2 Satellite Manufacturing Capabilities 2.3 Satellite Operators 2.4 Insurance

Satellite Contracts and Cost 03 3.1 Cost of Satellite Programmes 3.2 Comments on Satellite Expenditures

Multilateral Satellite Projects and Investment 04 4.1 Rascom-QAF 1, 1R 4.2 New Dawn Satellite

05 Multilateral Investment Deals

Commercial Space Industry Landscape 6.1 An Overview 06 6.2 African NewSpace Companies 6.2 NewSpace Formation/Investment Overview

07 Industry Size

Satellite Launch Services 8.1 Government Institutions Developing Satellite Launch Technologies 08 8.2 NewSpace Companies Developing Satellite Launch Technologies 8.3 University Programmes Developing Satellite Launch Technologies

African Space Ecosystem Development 09 9.1 Incubation Programmes 9.2 University Space Programmes viii

Government-Driven Space Programmes 10.1 National space programme 10 10.2 National Space Policy 10.3 Government Space Agency Formation

African Space Programme 11.1 African Space Policy 11 11.2 African Space Agency 11.3 Funding Case 11.4 Pan African University Institute on Space Science and Technology

Potential Funding Sources for Multilateral Projects 12.1 African Financial Institutions 12.2 Private Investment Companies 12 12.3 International Financial Institutions 12.4 Other Foreign Funds 12.5 Future Projections

13 Initiatives from Regional/Continental Collaborations

14 Foreign Intervention Programmes

15 Foreign Government/Military Presence in African Space Assets

Leading Investors and Banks in the African Space Industry 16.1 Private Companies/VCs 16 16.2 International Financial Institutions 1 6.3 African Financial Institutions

17 Doing Business in the African Space Industry

18 Space for the Good of Everyday People

Human Resources of the African Space Industry 19 19.1 Government 19.2 NewSpace Companies ix Executive Summary Rapidly Growing Market with Broad Participation

The African space industry had a history of relatively quiet, sporadic progress, but it is now blossoming into enormous growth. The aggregate GDP of the continent has doubled in the last 10 years, to over USD 2.2 trillion. The African space market is now worth over USD 7 billion annually, and we project that is likely to grow over 40% in the next ive years to exceed USD 10 billion by 2024.

From 1998 through May 2019, 32 satellites were launched into orbit by eight African countries: Algeria, Angola, Egypt, Ghana, Kenya, Morocco, Nigeria, and South Africa. In addition to the 32 national satellites, African institutions jointly funded three other satellite projects – RASCOM-QAF1, RASCOM-QAF1R, and New Dawn – for regional operations.

15 out of the 35 satellites were launched in the last four years, indicating the skyward growth rate at which Africa is embracing space technologies to power the continent's growth and improve the lives of its people. The diverse satellite programmes include 14 Earth observation satellites, 10 communications satellites, 8 technology demonstration satellites, a satellite for scientiic experiments, an educational project satellite, and a military radar satellite.

Increasing Opportunity for Global Private Companies Alongside Local Industry Development

The major and emerging commercial ventures operating in Africa that are involved in the space industry value chain cross multiple operational sub-sectors, such as satellite systems engineering (including manufacturers), satellite communications operators, propulsion system engineering (including rocket motor manufacturers), and ground station software solution providers. Commercial space companies such as Egypt's publicly traded satellite operator, Egyptian Satellite Co (Nilesat), Nigeria Communication Satellite Limited (NIGCOMSAT), NewSpace Systems, SCS Space, and Space Advisory Company are now generating revenue.

Increasing Private Sector Activity & Over 8,500 People Employed in the African Space Industry

The industry's growth is driven by growing private economies, as complemented by national and regional strategic priorities. The new African Space Agency will complement national space programmes while implementing the continental space policy stipulated under the African Union Agenda 2063. This policy looks to grow the industry with a combination of expertise and products from outside of Africa alongside the expansion of African capabilities to grow the industry for the good of all parties. x

African engineers built 14 of the 35 satellites, including those they built in Africa and others using facilities outside of Africa. There are multiplying business opportunities for local and foreign companies across the various subsectors of the African space industry. The non-African entities closing the most deals on the continent include Airbus Defense and Space (France), China Great Wall Industry Corporation (CGWIC), RSC Energia (Russia), Surrey Satellite Technology Ltd (UK), and Thales Alenia Space (France).

On the smaller end of the scale, a growing collection of NewSpace startups in Africa have recently attracted investment at over $200 million of combined valuations. About 8,500 people work across the African space industry. Approximately 2,000 of these people work for commercial companies, while the others are employed by governments through national space programmes and research centres.

On the Ground Insights

The African Space Industry Annual Report is published by Space in Africa, the premier source of space related news from Africa. Space in Africa has reporters stationed in Kenya, Nigeria, South Africa, Rwanda, and Tanzania who travel around the continent to provide news, analysis, and data on all aspects of the market.