Leading insights on The role of emerging space na- the space sector February 2020 tions in supporting sustainable Prepared by PwC development and economic Luigi Scatteia Partner growth PwC Space Practice +33 6 42 00 71 67 [email protected] Abstract the country, to supporting solutions for climate action, water management and sustainable land Alyssa Frayling The benefits of space technologies and applica- management. It also inspires new collaborations Senior Associate tions towards supporting society have become and cooperation with established space actors PwC Space Practice increasingly important in the global agendas of and the broader space community. Hence, it is im- +33 6 98 27 51 01 sustainability and development. This has prompt- portant to identify these emerging space nations, [email protected] ed the establishment of the “Space2030” agen- their visions for future space activities, and how da, which seeks to outline a comprehensive and this can target the Space2030 agenda. This paper Tala Atie inclusive long-term vision for space, detailing how aims therefore to categorize the countries that Senior Associate space-based data, space infrastructure, services have indicated new investments and development PwC Space Practice and applications can address goals in the major within the space sector, and to ascertain the most +33 7 72 37 36 96 frameworks, above all towards the achievement promising activities within the different geo- [email protected] of the UN Sustainable Development Goals. The graphic regions, including MENA, Africa, South four pillars of Space2030 cover space economy, America, North America, Europe, Australia and focusing on the development of space-derived Asia. Countries such as the United Arab Emirates, economic benefits; space society, to advance the Singapore, and Morocco have begun, for exam- societal benefits of space-related activities; space ple, to increase space activities or have shown accessibility, allowing access to space for all; and interest in establishing strategic goals. It explores space diplomacy, which strives to build partner- the challenges and potential drivers that will affect ships and strengthen international cooperation their progress in instituting or developing a space and the governance of space activities. Within sector, as well as the geopolitical implications on its initiatives, Space2030 aims to encourage the their advancement and the types of partnerships advancement of emerging space nations. Indeed, that have already been established. Finally, the all four of its main strategic objectives mentioned paper touches upon the vision for their evolu- above can be addressed in some way by the tion, and how the creation of a space sector can development of the space sector for these new address sustainable development and economic players, from encouraging industry, innovation growth. and infrastructure, and economic growth within

The role of emerging space nations in supporting sustainable development and economic growth | Page 1 of 24 Introduction is the development of microlaunchers, which provide cheaper and faster access for actors to The global space economy, estimated at around launch their small satellites, allowing them to be 1 $350 B in 2019 , has been heavily impacted by primary payloads. advancements across the entire value chain, from The consequence of an abundance of satellite lowering launch costs in the upstream segment, data is that companies will be able to transform to developments in ground equipment and their business models, unlocking applications and communication systems, and the evolution of business opportunities to markets such as those storage and cloud computing technologies for the that needed cheaper solutions, or applications downstream segment. with more precise monitoring. On the other hand, One of the most significant changes over the the significant volume of data being produced decades has been a shift from space being has introduced the challenge of how to manage, traditionally led by the military, to the evolution process and disseminate this data. This challenge towards commercialization and the rise of the of “big data” in general – where the volume of private sector, with space start-ups, private-public data being produced is too great or complex for partnerships and a new, shared leadership between traditional methods to process, and hence must governmental and private entities. The era of be addressed with newer solutions. However, “NewSpace” especially has unveiled a surge in the benefit of big data is that it can be analysed private investments in space activities, with over to discover trends and associations which $3.25 B invested in space technology companies otherwise would not have been identified with 2 in 2018 . The space sector has proven to be a smaller amounts of data. Advancements in data powerful socio-economic growth driver, and hence processing, storage and analytics could be the key it is important for countries to embrace space to transforming data collected through satellites activities. and other platforms into actionable analytics and insights. Furthermore, the increase of availability Growing trends in the space sector and decrease of cost with satellite data has helped The recent emergence of low-cost small lower the barrier to entry for start-ups and SMEs. satellite technology, due particularly to cheaper One of the ways to address big data is through manufacturing techniques and the growth of cloud computing, which continues to be a fast- commercial off-the-shelf components, has lowered growing market that has enabled cheaper, easier barriers to entry and given rise to a strong small ways to access data and facilitate large-volume satellite market. New entrants are beginning to storage. Users do not need to download and store disrupt the market by introducing constellations the data on their own servers, and so it reduces of small satellites into orbit, especially for Earth cost of access and provides a unique entry point Observation. These constellations are expected to to a wide range of different sources, including EO provide ever-increasing production and access to for example. Cloud computing has also become new data, such as EO imagery that covers larger a source of on-demand delivery for computing geographical coverage and daily revisit times, as power, servers, databases, software, analytics and well as potentially cheaper access to the data, other resources that can support the development especially for high and very high resolution. of new applications. With the improvement of miniaturization of satellites The introduction of new ways to process data and and their cost reductions, there is also a growing apply analytics, including artificial intelligence and need to maintain the same quality of services and machine learning, predictive analytics, and data products that are being provided by the larger fusion, has also led to the deployment of innovative satellites. Hence, technological advancements in solutions for producing intelligence for the end electronics and remote sensing technologies play user, especially now satellite data can be better an important role in the provision of similar services integrated with other types of data. and efficiencies as conventional satellites for both civil and military use, whilst reducing their costs. Benefits of the space sector On top of this, electronic techologies for different Contributing to space activities and injecting subsystems, such as power supply, propulsion, investments into the development of space etc., are under constant development for small infrastructure generates benefits that go far beyond sats, as are ways for “smarter”, more AI-driven the direct industrial effects such as GDP (Gross satellites. To go hand-in-hand with small satellites Domestic Product) impacts and employment

The role of emerging space nations in supporting sustainable development and economic growth | Page 2 of 24 effects to stimulating wider societal and economic revenues and reduced costs. The development of benefits. The capacity building necessary in a space-based communication services on the other nation to develop space infrastructure contributes hand provides connectivity to populations in remote to the growth of diverse (non-space) industrial areas and facilitates access to the internet and the sectors in order to meet the needs of the space incorporation of ICT in the public services such as supply chain be it in manufacturing, electronics healthcare, education etc., increasing their efficiency etc.. Stimulating national industries for that purpose and thus the quality of life of people in these areas. will ensure growth and retention of highly skilled Considering only 1 in 5 people have access to the labour and the advancement in domestic technology internet in Sub-Saharan Africa3 alone, these services development and R&D activities that meet the are expected to have massive impacts in developing innovation requirements of the new space trends, countries. Navigation services are no exception; they while generating spill-overs in various sectors have proved to be instrumental to the development ensuring the industrial competitiveness of a nation. of the transportation sector and other location-based The development of national space infrastructure services and have contributed to the improved safety on the upstream or downstream is critical for the in aviation or maritime activities. independence of a nation from the capacities or Beyond these examples of application-driven activities of other countries, and provides it with impacts and benefits, the development of space autonomy and freedom in exploiting and tailoring this infrastructure, services, programs and research infrastructure to meet its needs. initiatives is a critical agent for socio-economic Within the new space era today, developing the development. It displays this by fostering the downstream segment of the value chain and space- development of knowledge-based societies based services such as communications, earth characterized by an improved quality of life, an observation, navigation and scientific exploration increase in STEM educated people, development enables major socio-economic benefits in a in universities and the quality of scientific research country while addressing global challenges such as and by a growth in SMEs and start-ups capitalizing sustainable development, climate change, poverty on the infrastructure available to create value added and access to water and resources etc.. Earth services, business opportunities and additional Observation services for example, support the employment prospects and economic growth. different economic sectors and tackles the fragilities addressed by the Sustainable Development Goals Space2030 Agenda (SDGs) of the UN - for instance, by monitoring crops Collective efforts are being pushed forward to and agricultural production, and water and soil address the aforementioned global challenges of quality etc. EO plays a vital role not only in optimizing the world. These efforts have become formalized agricultural practices and increasing yield, but also in UN framework that includes the 2030 Agenda in assessing and projecting food security, allowing for Sustainable Development. In the meantime, for mitigation and prevention actions in due time in the impact of space-based services and space case food security is threatened. EO also allows the infrastructure on sustainable socio-economic growth monitoring and thus prevention of illegal activities has become increasingly more recognized as an such as human trafficking and the forecasting of essential tool to achieve the objectives formalized natural disasters, enabling both effective prevention by the UN and the international community. In and response to these crises, ultimately protecting recognition to the importance of space, the UN came citizens and saving lives. EO can additionally address to develop the “Space2030” Agenda.4 Space2030 economic sectors such as oil and gas, insurance etc. provides a long-term vision to integrate space as by supporting optimization in processes, increased a tool for development and to bridge the gaps

The role of emerging space nations in supporting sustainable development and economic growth | Page 3 of 24 in accessing space technologies and services Emerging space nations between established space nations and emerging The space sector has recently been witnessing a space nations. It has four main pillars for action and growth in the nations embracing space activities development: for the first time or nations resurging into the space sector and rebuilding their capacities and programs • Space economy: economic benefits of space following a long pause and now capitalizing on • Space Society: societal benefits of space space activities they have previously initiated. This activities growth is mainly associated to emerging socio- • Space accessibility: access to space for all economic opportunities discovered in the sector, • Space diplomacy: international collaboration the new trends that have lowered the barrier of and partnerships on space activities entry, and the quest of nations to play an active role in addressing global challenges and sustainable Mapping of global space capabil- development while also addressing their needs ities in a more effective and efficient manner. These entities have come to be known as “emerging space nations”. Countries capitalizing on historical Established space actors involvement in space include BRICS countries like When the space race began in the 1950s, it was South Africa, European countries like Greece and centred on only two players: the USA and the Portugal, Latin American countries like Mexico USSR. This slowly evolved with time, especially and Brazil, and South East Asian countries like after space was utilized not only for military but Indonesia and Malaysia. On the other hand, new also for civilian purposes. Soon after therefore, emerging space nations have considerably invested other countries joined the race, from France, to in their space sector in recent years, including but Japan and China, with more and more countries not limited to the UAE, Singapore, Australia and joining the space sector as it evolved. New Zealand. The involvement of emerging space Today, there are many countries who are well nations in this sector has been pursued at different established in the space sector, and are hence scales. The UAE for example has directly targeted perceived as established space actors. This status the upstream of the value chain and is working includes them establishing space policies and on the development of satellite manufacturing strong space programmes, having a history of capacities, launching in 2018 its first satellite space exploration, owning satellites, hosting large that has completely been manufacture in-house. space companies and perhaps even a rising private The UAE is also developing a human spaceflight space sector. program and it succeeded in sending the first UAE Not all of the established space actors are ranked astronaut to space (2019) only 5 years after the equally in terms of maturity or power of their space creation of its Space Agency (2014). sector and industries. Some are space-faring Other emerging space nations however focus nations with strong launch vehicle programmes, their involvement on the development of selected capitalizing on their heritage in space and space-based services (such as Bahrain) or on the developing their activities to position themselves stimulation or attraction of private investment in according to what is today know as space powers, space (such as Luxembourg) etc. Generally, the and these include the USA, Russia, Europe and different emerging space nations have diverse China. Other countries do not yet have the same capacities, objectives and challenges that maturity in the sector, but are quickly becoming determine their involvement and contribution to the emerging space powers thanks to their investment space sector. and technological advancements, such as Japan and India. Other established space actors who have long- term space programmes, assets, companies and more include Germany, Italy and Spain (on a national level rather than under the ESA umbrella), as well as South Korea, and Canada.

The role of emerging space nations in supporting sustainable development and economic growth | Page 4 of 24 Defining “Emerging Space Nations” space launch capacity, maturity of industry, capacity As it can be challenging to define the line between an building for human capital or industries, level of emerging space actor, an established space actor or established governance, and existence/success of others types of space actors that belong to neither of national space programmes. The ratings considered these two categories, with the lack of a standardized the level of development of each, when it has started ranking, and considering how quickly some countries development and whether recent efforts have been have evolved within the sector, this report defined an put to re-establish or re-define them. “emerging space nation” using rankings within key The current emerging space nations identified in this categories and identifiers. These categories included: report can be seen on the map below:

Emerging space nations around the world Source: PwC Space Practice analysis

Legend Emerging space nations

The role of emerging space nations in supporting sustainable development and economic growth | Page 5 of 24 Regions – Case Studies Latin America Latin America has long been a player in the Methodology global space activities. Major involvement began In order to look at how the space sector can with Brazil and Argentina that developed Alfa- have social and economic impacts on emerging Centauro and the Sonda I rockets in the 1960s. space nations, it was important to separate into Several countries followed shortly after, and yet different global regions, in order to ensure the case despite dispersed efforts over the years, some studies could be representative of a variety of have recently demonstrated commitment to space different types of emerging space nations. Within development by restructuring their governance of each region, PwC chose a country to expand space activities and succeeding to launch their into a case study, considering the countries own satellites into orbits. Such countries include current activities, investment and growth in its Columbia (with the first domestically manufactured national space sector. Each use case covers the satellite “UAPSAT” launched in 2015), Peru (launch objectives/drivers of the country’s space strategy, of Peru-Sat1, 2016), Chile (launch of FASAT- the challenges it may face, and the international Charlie, 2011) and Mexico (unfortunate loss of partnerships established. Finally, PwC provides satellite during launch in 2015). The creation of a high-level impact rating on how developing a the Union of South American Nations (UNASUR) space sector can affect the country in line with the in 2008 whose objective is to enhance dialogue, Space2030 pillars (economic, social, access to policy and socio-economic development in the space and international diplomacy). These will be region paved the way towards the creation of a ranked through high-level impact analysis: South American Space Agency. The role of this Agency would be to facilitate cooperation in order to achieve the launching of regional satellites into Table 1: High-level impact rankings orbits via regional launch vehicles. However, the Source: PwC Space Practice analysis diverging views between the entities involved set 1 2 3 a hurdle towards its achievement and the different countries continued with their national objectives Activities at and roadmaps.5 Activities at Activities more governmental/ governmental/ Many obstacles have stood in the way of Latin at R&D level, institutional Social/ institutional American countries distinguishing themselves as not yet provid- level only, with Economic level as well as ing significant small impact space powers despite decades of space activities. at industry lev- impacts on industry (or The lack of investment in space infrastructure el (commercial) vice versa) and the outsourcing to foreign entities to develop space activities rendered the sustainability of space programs difficult to achieve with the lack Has access Has some form of long term plans fostering national capacity to space data Able to access of national at a low level data & process building. On the other hand, national and regional infrastruc- Access to (reliant on oth- it to form fragilities often steered funding and development ture, from a space er countries), space-based efforts away from the space sector towards more manufacturing and data is not solutions as perspective or pressing issues deemed of higher priority. Such always tailored required cubesats, etc. fragilities in this region are often attributed to to needs geopolitical tensions and instability, and armed Developed conflict, declining societal conditions and services its own such as poverty, inequality, education quality Limited bilateral number of etc. Additionally, Latin American countries face Member of agreements partnerships; some of the worst environmental challenges in the Diplomacy international and MOUs; not a priority world ranging from air pollution to contamination frameworks key strategic for the strat- move to of water resources via industrial wastes and egy build part- deforestation.6 nerships Space activities in Latin America have yet a large role to play in order to support these countries in The report was developed through desk research, addressing their fragilities and implementing and stakeholder consultation and PwC analysis. monitoring the 2030 Agenda.

The role of emerging space nations in supporting sustainable development and economic growth | Page 6 of 24 infrastructure, capacities or expertise to support Case study: Bolivia the development of this sector and has no legacy space industry, thus making it dependant on the Objectives and drivers support and collaboration with other nations. On Bolivia has only recently joined the Space race in the other hand, the Bolivian community, being new order to support socio-economic development to the space sector, lacks the awareness of the role in its country and enhance the services provided of space in supporting the societal and economic to its people. In 2009, the Government of Bolivia challenges in Bolivia and resists the investments decided to launch its national Telecommunications being put in space while seeking the prioritization satellite that would be Bolivia’s first satellite. That of other sectors. This makes the user uptake of the came following the constitution adopted at the space based services and data more challenging time, that defines access to telecommunications and stands in the way of achieving the benefits as a basic service to the whole Bolivian population. intended of the space programs. More than 30% of the Bolivian population lived in rural areas then, and had no or limited access International Partnerships to telecommunication services because of the The development and operations of Bolivian space geographic and topological landscape of Bolivia. activities have been conditional to partnerships and With many areas surrounded by mountains and the collaboration. For the TKSAT-1 program, Bolivia Amazons, the reach of ground communications established a significant collaboration framework network to the different regions was hindered, and with China, which was outsourced the development the new satellite based telecommunication services of the project. The Chinese Development Bank would address these populations.7 In 2010, Bolivia funded the majority of the project. Collaboration with announced the creation of the Bolivian Space China also extended to capacity building for ground Agency (ABE) that was to ensure the development station operations that supported Bolivia in being of this satellite. Soon enough, in 2013 Bolivia capable to operate the satellite independently.9 launched its first satellite into space, the TKSAT-1, Beyond its partnership with China, Bolivia has manufactured by the Chinese Great Wall Industries signed a MoU with Iran in 2016 committing the two Corporation, announcing Bolivia as a space nation. entities to further extensive cooperation in the space TKSAT-1 began operations in 2014 and 70% of its sector. 10 total capacity was already occupied in 2017.8 It was deemed a huge success that brought large benefits Impacts to the Bolivian society and led to the planning of future space programs and activities. Bolivia in its Society: Despite the societal challenges that next steps targets development of space activities Bolivia faces, it has shown commitment towards along four lines: telecommunication, remote sensing, social and economic reform in the past two human capital development and new trends decades that its space activities have played a investigation. The Telecommunication dimension is role in. The establishment of its TKSAT-1 has led planned via the development of TKSAT-2 aiming to to the development of 2500 telecenters within 1 provide international telecommunication services year providing internet access in rural areas that to remote and rural areas (2021-2025). Although did have such services before, and managed a remote sensing satellite is planned as well but to provide more than 100000 homes with FTA not at the current time, Bolivia addresses this channels especially with the development of the activity by developing space imagery and data NewTec Dialog Hub providing residential access to analysis centres. It aims also to develop the human broadband connection. These have led to improved capital by fostering advanced education in space public services from enabling the development of (post-graduate programs) and last but not least in tele-health and tele-education national programs to investigating the possibility to cultivate its capacities improving service provision in remote areas. 11 in developing and utilizing small satellites. Economy: The Bolivian state has taken several Challenges measures in the past decade or so to improve Two main challenges have been identified in the the economic performance of the country and its development of the Bolivian space activities. actions have managed to improve the economic Bolivia’ involvement in the space sector is recent sector between 2004 and 2014 at an average and therefore it has lacked the necessary national annual rate of 4.9%. The space sector amongst

The role of emerging space nations in supporting sustainable development and economic growth | Page 7 of 24 these reforms has an important role to play Table 2: Impact assessment - Bolivia especially in addressing the objectives of the Source: PwC Space Practice analysis national economic and social development plan 2016 -2020 of Bolivia, and therefore of the 2030 Impact Explanation Agenda. With its first space satellite, Bolivia Although great benefits have been already expects a total revenue of 500 Million USD established from the TKSAT-1, over its lifetime of 15 years. However considering Social 2 Bolivia has only addressed the societal challenges of lack of that the main economic sectors of Bolivia are communication. agriculture, forestry, fishing and mining, all of which can be supported with the various space- Operational satellite witnessing based applications, the development of the remote Economic 2 economic benefits, but only in sensing activities of Bolivia could further support one sector. its economic development in these sectors. Owns a telecommunication satellite, can freely access Access to Space: With the first national Bolivian Access to 2 this data, but no capacities to satellite launched to space in 2013, Bolivia has space develop it nationally or auton- ensured access of its remote areas and rural omously. populations to space based data and services (telecommunications). For other activities such Depends on partnerships for its space activities, but only one as remote sensing, the dependence of Bolivia Diplomacy 1 significant partnership (with on international space based imagery such China for TKSAT-1). as from Chinese satellites has kept it from facing challenges in this regard. However, its long-term plans and activities are expected to Conclusion have a stronger impact on this dimension with Bolivia studying the possibility of developing • The main focus of Bolivia’s space applications nanosatellites and a remote sensing satellite. is telecoms, due to the societal problem it faces with the lack of connectivity to remote Diplomacy: Although Bolivia has not developed rural areas. a broad network of collaboration and cooperation • With sustainable development plans already in the space sector yet, as it progresses with put in motion, Bolivia has an opportunity to implementing space programs its network utilize the space sector in achieving these is expected to extend. The Bolivian Space goals. Agency has already announced its intentions • Bolivia would benefit of an outreach program to build partnerships shall it go through to spread awareness on the importance of with the development of a national small space activities and how they would support satellite.12 Additionally, with its next projects the implementation of SDGs in the country. aiming to address international coverage of telecommunication services to rural areas, Bolivia Africa is expected to focus on building partnerships for There are several overarching challenges facing funding, capacity building and uptake of the data the African continent overall that could be provided by this satellite. As the Latin American addressed in part by space-based solutions. For region is witnessing emergence in countries example, certain countries are suffering from formalizing space activities and has the advantage economic uncertainty, instigated especially by of countries with legacy in the space sector, the the decline in commodity prices, and poverty is opportunity for a regional collaboration framework still prevalent in Sub-Saharan Africa especially. presents itself to develop a space sector that Unemployment remains high, and inefficient would address the common challenges in the area. transportation and lack of infrastructure poses barriers on trade activities and development. Further to this, political unrest due to elections and post-election violence can impact different African countries, as well as rising tensions and conflicts that are associated with religious and ethnic ideologies. Armed insurgencies,

The role of emerging space nations in supporting sustainable development and economic growth | Page 8 of 24 terrorist organizations and rebel groups have satellites and their associated ground control emerged, exacerbating social grievances and stations and uplinking facilities.13 Egypt became worsening existing difficulties for governments the first African country to have its own direct TV and international communities to address. At the broadcast satellite when Nilesat 101 was launched same time, illegal activities are also common, with in 1998 (built by EU company Astrium), and the organized crime, trafficking networks and cross- country has launched several other satellites since continental illegal goods requiring unified monitoring then. 14 and action. Finally, the African continent experiences The National Authority for Remote Sensing and a wide variety of environmental conditions, and with Space Sciences (NARSS) is an organization these environments come extreme weather events. under the State Ministry of Scientific Research to Climate change has aggravated food insecurity and promote the use of space technology for ongoing diseases that in extreme cases can force migration development in Egypt and promoting the use of and create conflict. high-tech capabilities for various applications. Beyond being able to support solutions addressing It covers two major areas: remote sensing, to these regional issues, space is perceived as a driver produce maps and spatial data for evaluating and for socio-economic growth, and hence has been monitoring natural resources, natural hazards and established as an opportunity within the African environmental management; and space sciences, Union (AU) Agenda 2063, which established an which looks at the development of sensors overall strategy and policy for the continent. In for EO and the challenges of how to monitor 2017, the AU passed legislation to establish the communication with satellites and receive the data African Space Agency. There are some promising for processing. activities at national level also, with several African Egypt is now aiming to develop a more integrated countries now developing space agencies or space sector, including establishing an Egyptian similar institutions, including Algeria, Angola, Space Agency. In August 2019, the President Ghana, Morocco, Ethiopia and Kenya. The most of Egypt ordered the formation of the Board of well established are Nigeria, and South Africa. Directors for such an agency. The objective is to For example, the South African National Space develop the space sector in order to support the Agency (SANSA) provides services such as a data country’s national security and development goals. catalogue, data applications, the Space Weather The Agency will also have the responsibility of Regional Warning Centre, space operations developing a national space technology program, services, and participation in space missions and improve the capacity to launch nationally built industry and facility development. satellites, and train a skilled workforce. On top of the development of this new Agency, Egypt also won the bid to host the African Space Agency, above proposals from Nigeria and Ethiopia, strengthening Case Study: Egypt its position of pushing forwards a space sector. 15 Egypt has launched several satellites over the last Objectives and drivers few decades, including both communication and Although newly emerging as a space actor in its own EO satellites, although some did not live out the full right, Egypt has been involved in space activities expected mission duration. Some of these satellites for several decades. In 1996, the company Nilesat were manufactured in part by Egyptians rather than was founded for the purpose of operating Egyptian simply purchasing the satellites. 2019 was a big year

The role of emerging space nations in supporting sustainable development and economic growth | Page 9 of 24 X-CubeSat | Photo: École polytechnique - J.Barande

for Egyptian satellite launches, with EgyptSat-A in fairly separately, and hence the sector needs February, NARSSCube-2 in July, NARSSCube-1 in consolidation. September, and TIBA-1 (a military communications satellite built by Airbus and Thales Alenia Space International Partnerships for the government) prepping for a November There are two proposed or developing launch. international/regional frameworks to which Egypt has become a significant member: the Arab Challenges Space Cooperation Group, and the African Space Developing the space sector has already Agency. Both groups are currently undergoing come with challenges and setbacks for Egypt. development, and so it is difficult to pinpoint Failures such as the EgyptSat-2, which was built Egypt’s future role within either, besides as host of predominantly by Egyptian expertise and yet failed the African Space Agency. However, this highlights within a year of being in orbit, and EgyptSat-1, the weight on which Egypt seemingly places which lasted only 3 years of operation, caused international partnerships. In the future, Egypt may an upset in the progression of Egyptian space have the opportunity to progress quickly within the capabilities. On top of this, there has been a space sector thanks to the level of cooperation it challenge in the past of retaining engineers that will enjoy through these frameworks. have been trained for work in manufacturing Egypt also has partnerships with multiple satellites.16 countries. At the beginning of 2019, the country Legislation for the creation of a national space launched the EgyptSat-A, its third remote sensing agency faced years of delay due to political and satellite, which was built jointly by NARSS and economic instability and uncertainty from the 2011 RKK Energiya in Russia. It was also reported Egyptian revolution and the following political that China would grant US$72 M for the satellite upheaval. There was some pushback in trying to programme, following an initial grant of US$23 M build up a space sector during a period where in 2016 and a second grant of US$45 M in 2015. 18 the country had to implement economic reforms Egyptian-Chinese cooperation in space, aviation and utilize a US$12 B loan from the International and other high-tech areas is continuing to Monetary Fund.17 Some of this pushback was develop, and Egypt is a key actor in China’s Belt related to the fact that, as with many emerging and Road Initiative (BRI), with significant China space actor, there is a lack of understanding investment coming into the country and many IT, within the wider public as to how space can bring telecomm, transport and other Chinese companies benefits to the society and economy. Beyond this, establishing themselves in Egypt. NARSS and the scientific, research and production power in the Chinese Academy of Sciences have established a country are scattered amongst research centers, MoU for remote sensing applications. 19 universities, etc., with each group operating Other partnerships agreed by Egypt include with

The role of emerging space nations in supporting sustainable development and economic growth | Page 10 of 24 the Canadian Space Agency, the European Space it has the aim to have national infrastructure and Agency, Japan, the EU, France and the US. It has more autonomous access to space and space data established an MoU with Italy order to establish (through its own communication and EO satellites cooperation in EO for research, applications, and especially). This is in part because it is the military data exchange. leading the demand, and security is perceived as stronger when not so reliant on other countries. Impacts However, to date Egypt has continuously been working with international partners. Society: There are several societal challenges in Egypt that could be supported by national space Diplomacy: Partnerships to date have been key for activities. For example, the Wilayat Sinai emerged as the Egyptian space sector, especially as the country a terrorist organization operating predominantly in the has required partnerships in building its national Sinai Peninsula, declaring its allegiance to the Islamic infrastructure. This appears to be the case moving State in 2014 and claiming responsibility for several forwards in the sector also, as the country will be attacks. There are also threats of terrorism within involved in two different international frameworks, its Western desert, where Ansar al-Islam (al-Qaeda and continues to build off existing partnerships affiliate) is now operating and attacking Egyptian and MOUs. These frameworks especially will allow security forces. Space-based solutions could play Egypt to build its soft power in two different regional a prominent role in helping to monitor Egyptian groups, which may lead to more diplomatic ties and borders, for security purposes and detecting illegal strengthened positioning later on. activities. There are also environmental challenges facing Egypt. The country depends almost entirely on Table 3: Impact assessment - Egypt Source: PwC Space Practice analysis the Nile River for its water resources, and faces a growing challenge of water scarcity. It is not helped Impact Explanation by climate changes bringing higher temperatures, which shortens growing seasons and hence reduces Has strong governmental/military focus; security is of high impor- Social 2 agricultural yields, whilst pollution to the Nile is tance, but little at industry level becoming widespread. The Nile River Delta is for environment, etc. eroding, reducing the land available for agriculture, and in general, arable farmland is witnessing a Has governmental/military driving decrease that can impact food production levels.20 Economic 2 force; some level of national As with security challenges, the environmental capabilities at industry level. and agricultural issues faced by Egypt could be addressed by space-based solutions. Has national infrastructure; Access to 3 building capabilities for national Economy: Egypt is one of the biggest economies space in Africa, offering a lot of potential for industries and industry. the workforce. Some of its largest industries are based around natural resources, and have need of Partnerships are a key strategy; sustainable development in order to enjoy growth, Diplomacy 3 member of two international including agriculture and the energy sector, with frameworks. oil, natural gas, hydroelectricity and solar and wind power.21 Solutions utilizing space data can help bring economic value to these industries in a multitude of Conclusion ways, such as infrastructure monitoring. Moreover, • In order to continue progressing in a more by developing a space sector that has the aim to industry-led fashion, rather than governmental/ produce its own nationally built satellites, it will bring military only, Egypt needs to implement a a boost to innovation and a rise in trained individuals national strategy and roadmap; who will be encouraged to remain in Egypt as the • There is great opportunity for Egypt to leverage sector grows. its position as member of both the Arab Space Cooperation Group, and the African Space Access to Space: Egypt has a fairly different Agency and build more soft power in diplomacy approach to other emerging space nations, in that in these regions. However, it needs to lead also

The role of emerging space nations in supporting sustainable development and economic growth | Page 11 of 24 in ensuring their establishment is as fast and the countries’ respective socio-economic growths. efficient as possible; Middle Eastern countries globally face common • As there is currently no major space strategy challenges from rising pollution, water scarcity enabling uptake from the industry, Egypt may and water quality deterioration to desertification or be missing opportunities to build applications internal and cross-country security that could all and solutions that help the environmental be addressed commonly by proper space strategy challenges facing society. and activities. However, political tension in the • There does not seem to be a high level of region has rendered collaboration between the engagement between the space sector different countries difficult despite recent efforts and market segments such as energy or to establish an Arabic Space Cooperation. This agriculture, and so Egypt could benefit from Group, if successful, represents hope of further an awareness-raising campaign. cooperation, complementarity and diplomacy among the Arabic world and the development of Middle East a competitive, innovation driven Arabic industry The Middle East (ME) demonstrates a peculiar in both space and non-space sectors, and further region of major differences and large inequalities reduce the gaps and inequalities between the between its countries. Apart from Iran and Israel Arabic countries. (whom are not considered emerging space nations) the Middle East has witnessed a new emergence in the development of space activities within the past few years. Case Study: Lebanon The region is one of the world’s largest energy storehouses22, making this field the largest Objectives and drivers economic sector in Gulf countries like the UAE, Amidst the growth in emerging space nations Saudi Arabia, Bahrain, Qatar etc.23 However, due especially in the Middle Eastern region, Lebanon to global changes especially in the energy sector, realized the potential impacts of these activities such countries have actively sought diversification on developing countries and has recently decided of their economies through the creation of to become more active in the space sector. development programs, and plans targeting The National Council for Scientific Research in highly innovative technology advancement and Lebanon (CNRS – L), manages four thematic establishing knowledge-based societies and centres, among which is the National Centre for services.24 The space sector demonstrated a Remote sensing, established in 1995.26 This centre priority in this development plan as a highly is concerned with the downstream applications strategic and innovation-driven sector. The UAE of remote sensing and Geographic Information for example established its Space Agency in 2014, Systems (GIS) and has developed a heritage developed its space policy and is soon to release of expertise in space-based data analytics its national space strategy aiming to make the UAE incorporating Machine learning and Artificial a global leader in space. Other countries followed, Intelligence capabilities to provide actionable e.g. Saudi Arabia formalizing its Space Agency, insight for several applications and market Bahrain working on launching its first satellite and segments. In the past years, the engagement building capacities, including new entrants such as of Lebanon in the space sector has increased Kuwait.25 as it attempts to move beyond the downstream However as a region torn by war and internal applications of space towards the midstream and fighting, many countries in the ME are stuck with upstream, aiming to develop and launch its first the societal and economic impacts of conflict NanoSatellite. The project “Cubesat Technology: or its regional spill-over, from poverty and Towards Developing the First Lebanese unemployment, to the lack of infrastructure for Nanosatellite” was developed under the funding the development of economic sectors, insecurity, of the EU and in collaboration with the UK’s financial and environmental crises etc.. Countries Crown Agents spanning from September 2018 in the region face these challenges at different until September 2019. It aims to build national levels and scales, however some of the afflicted capacities along three main dimensions: space countries, such as Lebanon and Jordan, have program management, ground station operations already engaged in the emerging space activities and CubeSat design and integration, and to of the region, aware of their potential to support ultimately launch the first national nanosatellite

The role of emerging space nations in supporting sustainable development and economic growth | Page 12 of 24 to space (by 2022).27 Successful efforts have authority of the Prime Minister. 29 been placed during the execution of this project Another main challenge in Lebanon is the lack of a including the training of around 70 students and coherent vision for space at a governmental level. researchers and the installation of a ground segment Space activities and advancements in Lebanon are for NanoSats and CubeSats. A national Space driven by the academic institutions and the scientific Committee has been formed in Lebanon in order to hub in a bottom-up approach. The development develop its national space roadmap. and sustainability of these activities however, Space activities in Lebanon started in order require a national vision from the government to to address to various societal, economic and foster their development and enhance the benefits environmental fragilities that the country faces. and potential impacts of this sector on the socio- Lebanon’s economic infrastructure is ranked 130th economic development of Lebanon. Unfortunately, in the world out of 137 countries, where it continues with the many crises faced in Lebanon such as the to struggle with electricity, transportation, waste Syrian refugee crisis, the looming economic crisis30 management, telecommunications and many or the environmental crisis, little interest is put into others.28 Additionally, despite being rich in water the space sector. This sector does not come as a resources, the waste and poor management of priority to the Lebanese government at this point these resources have led to daily water supply mainly because the role it could play in addressing shortages in the country and growing contamination these crises is not yet perceived by these bodies. of these water resources. Therefore, the activities of Additionally, establishing the sustainability and the Remote Sensing Centre of Lebanon addressed long-term development of space activities comes several of these issues by targeting applications of as a concern in an emerging space nation such as water management, urban planning, soil resources, Lebanon. One of the main challenges currently is the forestry, agriculture, snow cover, climate change ability to sustain the capacities developed during and others. Lebanon has recently decided to its NanoSat project and leverage on them in further further its involvement within the space activities space activities in the absence of a long term space to address its fragilities and to contribute to the strategy. sustainable development of the country and the Finally, there is the absence of a space industry region. However, geopolitical drivers should not be within Lebanon. Space activities remain at an underestimated either. The emergence of space institutional level with very limited (and very recent) activities and programs in the neighbouring Arabic activity from private companies. The private countries have definitely increased the pressure on sector has proven to be very important in driving Lebanon to join this race and develop its capacities space technologies and applications development in this sector, especially with the development of the and in promoting innovation in the space sector. Arabic Space Cooperation Group. Proceeding without a mature space industry increases the risks on the government that would Challenges have to support the funding and development of Developing space activities and programs does infrastructure without significant contributions from not come without its challenges for a country like the private sector and hinders the evolution of the Lebanon. The internal political instability of the space sector in the country. country weakens the performance of its institutions and paralyzes development, and this is expected to International Partnerships creep into its space programs as they are under the Collaboration has been a backbone of the

The role of emerging space nations in supporting sustainable development and economic growth | Page 13 of 24 Lebanese space program and its emerging of opportunities and in the decline of the socio- activities. It extends from a national to regional economic and political situations and Lebanon and international levels. On a national level, the thus faces a big problem with brain drain. Although Remote Sensing Centre of Lebanon has been the space activities in Lebanon have not enabled collaborating with the ministries of Lebanon and the full realization of the societal impacts, they with other institutions such as municipalities, have provided opportunity for skilled Lebanese NGOs and universities in addition to private people to remain in the country and engage in the entities. The centre has developed several bilateral development of the space activities. However, to projects related to the downstream segment of address the further societal issues in Lebanon the space with countries such as Italy, France and space sector requires further operationalization Syria to execute studies on water resources, forestry, and climate change. It has participated Economy: Space activities in Lebanon have to internationally funded projects by institutions mainly been pursued at a research and academic like the FAO, EU, WB, GEF and the IDRC to level, and for the provision of information products develop similar activities31 and has long been a to the governmental entities and NGOs. Therefore, member of UNOOSA. In the development of its they have not begun to demonstrate the true first nanosatellite project, Lebanon has partnered potential spectrum of benefits on an economic with Crown Agents (UK) and accessed funding level yet and the vast opportunities to benefit in from the EU under the Technical Facility Program this domain are wide open. The private sector in they granted to the Government of Lebanon. Lebanon has always played a major role in the Beyond the partnerships sought for funding, economic development of the country, and the Lebanon’s collaboration with the EU extends Lebanese Remote Centre has begun engaging towards capacity building support in the space such companies in the space domain, with private domain. Lebanon has also been part of regional sector representatives being part of the National collaboration efforts as it is part of the Regional Committee for Space. There is opportunity to Centre for Space Sciences and Technology leverage on the capacity of the private sector in Education based in Jordan, affiliated to the UN Lebanon to develop new space based business and is part of the new Arabic Space Cooperation models, value added services companies and Group that aims to develop the Arabic space innovative space-based solutions that would thus sectors and capacities. Building partnerships and support employment and bring further return and collaborations is a pillar in Lebanon’s approach wider impacts to the struggling economy of the towards the development of its space activities country. and is expected to continue to be a main area of focus for the country. Access to Space: Access to space-based data and infrastructure is an important issue for Impacts Lebanese space activities. With these activities being focused on the downstream sector, their Society: Lebanon has suffered successive wars efficiency depends on the availability and quality and spillovers of neighbouring wars, particularly of the space data. As Lebanon does not have its the Syrian crisis, that have put a strain on the own space infrastructure and satellites to provide country’s stability. Combined with institutional the data it needs, it depends on other satellites. deadlock and the lack of national policy for However, the continuous need to purchase sustainable development, this has led to severe this data puts a financial strain on the country, societal issues, and posed a challenge on and does not provide it with data tailored to its implementing the 2030 Agenda. The garbage needs especially considering the small size of crisis that started in Lebanon in 2015 due to the country. Lebanon also lacks national updated dysfunctional waste collection and disposal statistical data and information. Such data is operations has led to a rapid growth in pollution crucial to establish the SDGs and to monitor the indices in the past four years risking the health related policy implementation. Developing space and safety of the population and its resources. infrastructure such as nanosats will support Poverty in Lebanon is expected to increase addressing this problem and providing global along with inequalities due to the deteriorating national information necessary to adopt strategies economy.32 The skilled Lebanese population finds and policies to support the implementation of itself forced to leave the country in the absence Agenda 2030.

The role of emerging space nations in supporting sustainable development and economic growth | Page 14 of 24 Smallsat in an Assembly Integration and Test faciity | Photo: SSTL

Diplomacy: Lebanon maintains good relationships and dialogue with international countries especially Conclusion with Europe. The EU and Lebanon have developed • Lebanon has strong assets to exploit in the an Association Agreement since 2006 to address space sector, including its highly skilled STEM economic, social and cultural cooperation. Priorities educated students, researchers and labour, and for their partnership were adopted for 2016- its legacy of space data analytics. 2020.33 Lebanon maintains bilateral collaboration • Lebanon benefits from good diplomatic with European countries individually also, such relations such as with Europe that could be as France. The foreign relations of Lebanon could leveraged to build partnerships in the space support the country in building partnerships for sector. space activities and are an important tool to access • Lebanon’s geopolitical position poses a strain technical and financial support. In fact, due to the on its development (especially in achieving space program of Lebanon the EU renewed the SDGs). TAF program mentioned previously.34 However, • Lebanon benefits from the development of on a regional level, political relationships and the Arabic Space Cooperation Group that if dialogue between the different Arabic countries is properly structured in the coming years could unpredictable, and space activities, through the support the development of the space sector Arabic Space Cooperation Group could prove to be and industry in the entire region building on the a strong tool for wider diplomacy in the region. complementary capacities and expertise. • It is important that Lebanon develops a clear Table 4: Impact assessment - Lebanon strategy and roadmap with a long term vision, Source: PwC Space Practice analysis that is aligned with its different industrial and socio-economic policies or objectives. Such Impact Explanation roadmap, leveraging on Lebanon’ capacities Training and developing skilled could ensure optimized benefits on the wider labour, providing opportunities to Social 1 Lebanese economy and on the sustainable retain STEM educated students. societal and environmental development Still on small scale. • A space strategy in Lebanon should address Supporting economic sectors at the development of a space industry leveraging the level of the government (min- on the current role of the private sector and Economic 2 istries). Minimal engagement of foster Public-Private Partnerships private sector. More research ori- ented than commercial services. Southeast Asia/ASEAN region Main Challenge. No autono- The Association of Southeast Asian Nations Access to 1 mous access to space based (ASEAN) has ten members: Brunei, Cambodia, space data or infrastructure. Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. The aim and Depends on partnerships and purpose of ASEAN is to accelerate economic support from other countries. growth, social progress and cultural development Diplomacy 2 Bilateral cooperations and MoUs could further be devel- in the region, promote regional peace and stability, oped. promote active collaboration and mutual assistance,

The role of emerging space nations in supporting sustainable development and economic growth | Page 15 of 24 and collaborate more effectively for agriculture, including multiple small satellites built by the industries and overall expansion of trade.35 The Nanyang Technological University (NTU). However, region has a strong GDP growth rate; however, recent years have seen a sudden increase in challenges still remain for sustainable development space activities and actors within the country. and growth, including the complex geopolitical Although its development within the space stability and regional relationships, such as sector has been more recent than many of the overlapping claims to territories, a wide range of other ASEAN countries, it has strong financial different GDP per capita, and impacts from wider viability and technological resources that have trade challenges, such as the US-China tariffs and provided a foundation for its progress, and it has the Chinese economic slowdown.36 made significant investments since focusing on Space activities are on the rise in the region. expanding the space sector. Its primary focus is The Vietnam National Space Centre (VNSC) is on utilizing space technology for communications, seeking to produce its own satellite by 2022 and resource management, and skills increase and become a leader in the region for space, and has innovation.39 made large investments into the sector, driven by The Economic Development Board (EDB) through sustainable development goals and conducting its Office for Space Technology and Industry military and foreign affairs. Japan is seeking to (OSTIn) is supporting Singapore-based space invest in US$480 M into Vietnam’s space industry companies. However, one of the principle actors for EO satellites, a space centre, and the training within the space sector is the non-government, of engineers by JAXA.37 India signed an MOU with non-profit trade association the Singapore Space Vietnam to establish a tracking and data reception and Technology Association (SSTA), which station and data processing facility.38 Other focuses on developing space and related high- activities in the region include from Indonesia, tech industries within the country. It leads major which has an agency and an established National trade and business-focused initiatives, pushing Space Law, focusing on space science, remote Singapore as a regional space hub, and drives sensing, technology development, and launching educational and outreach programs to encourage and commercialization of space activities. The STEM careers in the space industry. SSTA also Philippines, Cambodia and others have also acts as the administrator for Singapore to utilize started progressing in the space sector. the Japanese Experiment Module on board the ISS.40 One of the differentiators of Singapore’s emerging Case Study: Singapore space sector compared to many others, is the fact that it has appealed to start-up companies. Objectives and drivers Within five years, the sector has grown from Singapore has a history of space activities, predominantly supporting a few researchers,

The role of emerging space nations in supporting sustainable development and economic growth | Page 16 of 24 to having a growing private sector with around Singapore as prime destination to establish an office 30 companies.41 One of the driving factors is that in the region. Singapore is a business-friendly environment, with In 2019, the SSTA signed an MoU with the Space economic stability and position as a financial hub and Aeronautics Association of Indonesia (SAAI). that attracts private investors, along with a strategic The government is also collaborating with the UK to location for entering the Asian market. Singapore develop space quantum technologies. houses a strong electronics manufacturing industry, indicating manufacturing and design expertise that Impacts can be applied to small satellite components. There is already an interesting array of space Society: Climate change is a long-term concern actors in Singapore, including Astropreneurs Hub, for Singapore, which faces the threat of rising sea an incubator providing access to satellite flight levels, as well as coastal/tidal flooding and coastal simulation tools, training programs and experimental erosion. The country has already implemented kits that can be flown on the ISS. The US space mitigation measures such as carbon tax and building data and analytics company Spire has a presence infrastructure on elevated ground, but space-based in Singapore, while Spacechain is a company solutions could bring additional solutions. The same with the ambitious aim of establishing an open- could be said of Singapore’s other environmental source network via satellite constellation to power challenges, such as flash floods and droughts, blockchain-related applications. Microspace builds and the general challenge of water management and operates its own nanosats, launching its first and supply, where space can act as a tool to aid in satellite POPSAT in 2014. monitoring the situations. Space can also provide benefits in the area of Challenges security for Singapore, including providing maritime One of the primary challenges moving forwards is situational awareness and support the fight against the lack of enough governmental support within sabotage and piracy in areas such as the Singapore Singapore for the space sector. Whilst there is Strait. indeed a rising awareness and involvement from the sector, there is still no official space agency. Instead, Economy: Singapore is facing the slowing of the Agency for Science, Technology and Research economic growth in recent years, not helped in (A*STAR) provides funding to the Centre for Remote recent months by the upheaval of tariffs occurring Imaging, Sensing and Processing (CRISP), which between the US and China. Hence, it is looking to is a research centre at the national University of diversify and explore new areas of cooperation. Singapore that aims to develop advanced capability This is where building up the space economy within in remote sensing to meet scientific operational the country can bring benefits, as it must grow and business demand for the region. There is little more emerging industries. The space sector on funding coming from the government, and hence a a global scale has still been growing rather than lack of specific grants for space companies. This slowing down, and while there is also increasing fractured nature of the space sector risks losing competition, Singapore is well positioned to momentum if there is not a focussed support system increase its space activities compared so some and leader for the sector from a governmental of the other countries in the region, and begin to perspective. cooperate with the larger Asian space powers, such as Japan, China, India or South Korea. A growing International Partnerships private space sector will bring a new aspect to its International partnerships do not seem to be a electronics and manufacturing sectors, and it can driving force for the space sector in Singapore, leverage off the fact it sits in the crossroads between predominantly because the government has not three substantial economic regions of opportunity: laid out a strategy in order to implement space China, India and ASEAN. cooperation. However, that does not mean international actors are unimportant. Singapore Access to Space: Singapore has limited national attracts many global companies, who aim to infrastructure, historically being more research- establish an office within Singapore thanks to its driven a couple of decades ago. It has however business-friendly environment and ease of access begun to launch some small satellites. Many have into the Asian market. This has been occurring in been technology demonstrator missions, built by the space sector, where companies are choosing Singapore’s academic institutions such as the

The role of emerging space nations in supporting sustainable development and economic growth | Page 17 of 24 National University of Singapore or Nanyang Singapore may miss advancing its space Technological University. Its first commercial sector due to a lack of direction from the satellite was the TeLEOS-1, which is an EO government. satellite developed by ST Engineering that • Industry is indicating that more support launched in 2015, and which will be replaced by from the government is necessary, including the TeLEOS-2 satellite in 2021/2022. The satellite financial support such as grants, better aims to provide high temporal imagery and networks amongst institutions and industry, geospatial solutions for homeland security and and international partnerships. border control, maritime monitoring and disaster • Thanks to Singapore’s industry expertise management. Therefore, there is a slow-growing (manufacturing, finance and IT), as well as its ability for nationally built infrastructure to provide strategic positioning, the country has a great access to space, and access to space data in opportunity to become a space power in the general for Singapore is not a challenge. region.

Diplomacy: Building its space sector may bring Oceania closer connection for Singapore with the Asian Oceania is a highly diverse region, in terms of space powers, namely Japan, China and India, culture, demographics, infrastructure development who are all competing to play a larger role in the and economies ranging from the highly developed region with different economic initiatives. Hence, and globally competitive markets of Australia and collaborations in space with Southeast Asian New Zealand to much less developed economies countries such as Singapore will also reflect such as within the small islands of Micronesia. The strategic choices these countries are making. region is composed of Australia, New Zealand, and the countries and territories of the Pacific Islands making up Melanesia, Micronesia and Polynesia. Table 5: Impact assessment - Singapore The majority of the population within Oceania Source: PwC Space Practice analysis reside in Australia and New Zealand, in Impact Explanation predominantly urban locations, compared to the more rural populations on some of the smaller Rising number of activities, islands. However, there are still similar challenges Social 2 although little coordination at facing many of the countries within the region for governmental level. ensuring sustainable development, including the need to monitor for climate change impacts and environmental challenges, the need for maritime Rising private sector; little coor- Economic 2 dination at governmental level security awareness, and the need to monitor and currently. help populations that are widely dispersed over geographic areas, or situated in difficult-to-access locations. Strong manufacturing and IT Access to Whilst all the countries within Oceania could 2 sectors; not much space-based space benefit greatly from implementing space-based expertise yet. solutions, realistically only Australia and New Zealand have the economic strength and stability International companies in the to develop an integrated space economy. These private sector are important; no Diplomacy 1 two economic powers of the region are in fact both cohesive international partner- ship from government. in the process of developing this sector further. New Zealand set up its New Zealand Space Agency (NZSA) as part of the Ministry of Business, Innovation and Employment in 2016, with Conclusion two principal objectives: leveraging economic • There is a need to have an established development opportunities especially through governmental space agency, as currently encouraging the industry and private sector, and there is no overall space strategy for the ensuring safe and responsible orbital launches country overall. There is currently a very from its territory. Indeed, it is an unusual actor fragmented approach at governmental level. within the emerging space nations, as it is

The role of emerging space nations in supporting sustainable development and economic growth | Page 18 of 24 a New Space nation with no history of large Civil Space Strategy 2019-2028, which outlines government investments in space, and already four strategic space pillars: International, National, has launch capabilities through Rocket Lab’s Responsible and Inspire. Firstly, it aims to “open successful establishment of its Launch Complex doors” internationally, leveraging international 1 commercial spaceport – the world’s first, and bilateral and multilateral partnerships to grow the so far only, fully private orbital launch facility. The global competitiveness of the Australian space commercial launches that have already been carried sector. It also aims increase national capabilities out from this spaceport are not only an important that support the broader economy, and promote development for emerging space nations, but for responsible regulation, risk and culture, by the space sector in general, as a leading example of promoting a space sector that ensures national the demand for commercial microlauncher activities. safety and security under the appropriate regulatory Besides its strategic location for launches – with framework. Finally, it aims to build a space clear seas and skies and access to a wide range of workforce that encourages industry, researchers, launch angle – New Zealand has demonstrated a government institutions and the broader Australian governmental process that is willing to adopt new industry to work together. 42 technologies and implement an agile approach to There are seven priority areas for the National Civil developing policy and encouraging innovation and Space strategy: position, navigation and timing; commercialization within the sector. Earth Observation; communications technologies and services; space situational awareness and debris monitoring; “leapfrog” R&D; robotics and automation on Earth and in space; and access Case Study: Australia to space.43 These priority areas are building off the assets and capabilities already present in Objectives and drivers the country, as well as areas that support crucial Australia has a long history of involvement in the aspects of the Australian economy. space sector, including having a Nation Space The government is positioning itself as a partner and Program in the 1980s and 1990s, overseen by the facilitator to drive the space sector forwards, and Australian Space Office (which was abolished in help deliver results; the industry meanwhile needs 1996). Its legacy of space activities have helped to lead investment and growth. In order to enable it progress in the sector, but it was only recently a competitive and sustainable industry, the Space that the Australian Space Agency was established Strategy has put into place the Space Infrastructure in order to address the need to have a more Fund, which will be an AU$19.5 M investment into coordinated approach to the sector, and to help seven infrastructure projects around the different increase industry engagement. High-tech sectors regions, including space manufacturing facilities, are enjoying strong development in recent years mission control, tracking facilities, and space data especially, and as the country is focused on jobs analysis facilities.44 and growth, the space sector makes for a unique market to help fulfil their development goals. Challenges In 2019, the government established the Australian One of the main challenges for the Australian space

The role of emerging space nations in supporting sustainable development and economic growth | Page 19 of 24 sector is to boost engagement with the industry has a sizeable population dispersed over a large and broader public. Some market segments are geographic region. Although there has been a shift aware of the benefits space can bring to their towards urbanisation, it is still important to be able operations, whilst many others need to be taught to monitor large areas of the country. how space-based solutions can help. For the wider public, it can be difficult to understand why Economy: The focus of the Australian Civil Space the government would want to increase spending Strategy is very much towards an industry-led on a sector such as space when there is a limited space sector, encouraging the private industry to pool of funding available, so it is important that develop and hence seize economic opportunities. there are engagement and awareness raising Furthermore, some of the largest industries in activities taking place. Australia include the mining industry, which is As with most emerging space nations, it also a driving force for the exploration of remote needs to ensure that Australian space businesses Australian regions and industrial advancement, have the capability to enter international supply and which can benefit from technological chains, including internationally recognised advancements in exploration, extraction and qualifications, certifications and processes. It will processing. It also has a large manufacturing also need to continue equipping the workforce industry, a large tourism industry based greatly on with the necessary skills and expertise required as the attractiveness of its natural landscape, and its the foundation of a space sector. agricultural industry. There are all areas that could be supported by advancements made in space- International Partnerships based solutions. International cooperation plays a large role in the overall governmental strategy for Australia. Access to space: Australia operates some Under the Australian Civil Space Strategy, there is national satellites, but predominantly for the International Space Investment (ISI) initiative communications and broadband. Its strategy providing AU$15 M over three years for strategic moving forwards is not focused on building space projects that will both grow the national government-owned infrastructure. However, it space industry, but also build collaboration with has a strong capability in utilizing space data, international space actors. demonstrated by services such as the Open Data The Agency has already signed MoUs with other Cube born from the Australian Geoscience Data nations to identify areas of cooperation in space, Cube projects. It provides an open source solution including with CNES (France), CSA (Canada), for accessing, managing and analysing large UKSA (UK) and UAESA (UAE). It has also entered quantities of EO data. into a strategic international partnership with From an infrastructure perspective, there have NASA (USA), and will invest AU$150 M over five been activities under progress that aim to years into businesses and technologies that will establish a commercial launch site, with the South support NASA on its “Moon to Mars” mission. Australian government granting project status in 2019 for Southern Launch to begin assessing Impacts a site at Whalers Way for an orbital launch complex for microlaunchers.45 The government Society: One of the biggest social challenges for also enacted new regulations regarding launch Australia is climate change and environmental and re-entry of commercial vehicles as a way to issues. This includes rising sea levels, flooding, help promote development of a domestic launch droughts, water management, bushfires, industry. increasing temperatures, pollution and deforestation. There is a need for environmental Diplomacy: As highlighted with its international monitoring and disaster relief systems that can partnerships and the International Space be supported by the utilization of space-based Investment fund, it seems that partnerships are solutions. Maritime situational awareness is also a key part of Australia’s policy moving forwards, an important requirement for security in Australia, although many of its current partners historically as is the need to counteract illegal activities such have good diplomatic relationships with the as illegal fishing, smuggling and human trafficking, country anyway. all of which can be supported by the space sector. However, space can act as a soft power within In a more generalized context, the country also the region for Australia. Many of the other small

The role of emerging space nations in supporting sustainable development and economic growth | Page 20 of 24 Oceania countries could benefit from space-based solutions in regards to climate and environmental Conclusion challenges, as well as security issues, and yet do • Other Oceania countries could benefit from not have economic viability for building their own space-based solutions, and yet do not have space economy. Therefore, Australia could build the necessary infrastructure and economies stronger ties in its own region by providing solutions to build their own sector. Therefore, Australia through its industry that could help tackle these could act as a provider for these types of challenges on a broader level. solutions. • Considering there are two emerging space Table 5: Impact assessment - Australia nations in the region with different strategic Source: PwC Space Practice analysis approaches, Australia could aim to cooperate with New Zealand in some areas, avoiding Impact Explanation replication of niches. • Australia will be able to benefit from having Strong governmental activity; an already-established space strategy and Social 2 increasing industry activities. roadmap, thereby giving direction for the space sector to grow. • Australia could benefit from an awareness- raising publicity campaign for the industry and Strong governmental and industry Economic 3 broader public. activities and strategic approach.

Strong access to space data; Access to 2 not much national infrastructure space to date.

Already strong bilateral Diplomacy 3 agreements and MoUs; a key strategic area.

The role of emerging space nations in supporting sustainable development and economic growth | Page 21 of 24 Overall conclusions and key support industry in terms of financial and points networking opportunities. • Whether building a sector that is led by governmental actors, or by facilitating the Within the global landscape of emerging space industry to lead, it is important to have an nations, there are some common challenges that overall national strategy in order to ensure the arise, not least the Need for a strategic vision, space sector evolves efficiently and with the and the need to quickly implement the necessary correct legislation and tools to support space landscape to allow a space industry to thrive, actors. whether that is from a legislative perspective, the • International cooperation and collaboration need for a strategic roadmap, or the need to build is important for many emerging space more skills and expertise. nations, especially in helping for access to Therefore, some of the key points for emerging space, building infrastructure and ensuring space nations to consider in order to address the the training of the workforce. Being part Space2030 Agenda include: of an international framework allows for • The need to develop and formalize a long- complementarity, as well as allowing more term roadmap for space activities, that will established space nations to support define the way forwards for sustainable emerging ones. Emerging space nations activities and capacities within the sector, can also build cooperation, in helping address which industries should be targeted leverage each country’s national assets and firstly, retain workforce expertise, and differentiators. capitalize on existing assets. • Emerging space nations must tackle how to • There is a need to define a strategy to integrate space into different market sectors, capitalize on the benefits of space activities, as well as build strong support from the and utilize space in supporting other industrial general public. Awareness and outreach to sectors and socio-economic development society on the benefits and importance of policies, in order to form a more integrated investing in space must be included in space economy. activities. • In order to support the evolution of the private sector, strategies should include ways to

The role of emerging space nations in supporting sustainable development and economic growth | Page 22 of 24 Sources

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The role of emerging space nations in supporting sustainable development and economic growth | Page 23 of 24 If you have any questions or wish to discuss the space sector and the challenges it faces, please contact us:

Luigi Scatteia Partner, France PwC Space Practice Leader +33 6 42 00 71 67 [email protected]

Paolo Ariaudo Director, France PwC Space Practice +33 6 77 61 39 78 [email protected]

About PwC and the space sector

Data The information presented in this document are based on available data as of June 2019, and are subject to change over time.

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