In my opinion Africa’s leading companies with technology expertise stand at a pivotal moment in history—a rare window of opportunity to break into the lucrative satellite production and associated internet services sector. The global demand for satellite communication is skyrocketing. With technological advancements in satellite miniaturization, the barriers to entry have significantly lowered. Today, companies can produce small satellites that are cost-effective, highly efficient, and quick to develop.
The shift toward SmallSats [1] powered by cutting-edge artificial intelligence (AI) design tools [2,3] and Commercial-Off-The-Shelf components [4], has democratized the satellite market. With the availability of global vendors offering specialized parts and consulting services for building custom clean rooms as well as assembly, integration, and testing facilities, newcomers can compete at a world-class level. This levels the playing field for African tech giants to become serious players in this space. With Africa’s comparative advantage of lower labor costs, the continent’s tech companies are also positioned to offer highly competitive pricing in the global satellite market.
Global giants like Airbus and Boeing [5], which are primarily airplane manufacturers, have already made successful ventures into SmallSats production, proving that leveraging existing engineering know-how and technology management expertise can open new, highly profitable avenues. African tech powerhouses—such as Kenya’s Safaricom, Ethiopia’s Ethiopian Airlines, South Africa’s MTN and Vodacom, to name a few—have the technical infrastructure, skilled workforce, and management expertise to follow suit. These companies can build a strong presence in the satellite industry, not only by addressing the continent’s unique connectivity challenges but by exporting services to the rest of the world.
The time is now for Africa’s tech leaders to capitalize on this growing market. With rapid advancements and global demand, early movers stand to gain a significant competitive advantage, driving growth and innovation in both telecommunications and space technology.
Launchpad to the Future: The Impact of African Tech Companies on Aerospace in the Continent and on Education
African private companies and for-profit state-owned enterprises have a unique opportunity to accelerate the continent’s progress in the space sector and drive transformative growth. Unlike budget-constrained, government-led space programs, these enterprises can bring speed, agility, and innovation to the field. By venturing into satellite production and related industries, these companies will not only complement the existing government funded programs but also inject new energy into Africa’s space ambitions, making them more competitive globally. Investing in the space sector will also revolutionize education and workforce development across the continent. With Africa boasting the world’s youngest population, this sector offers an unparalleled opportunity to train the next generation of aerospace engineers, technologists, and industry leaders. By building an ecosystem around satellite technology and space exploration, African tech companies can provide jobs and open pathways for specialized talent to flourish locally-ushering in a new era of self-sufficiency in high-tech fields.
Recent developments already signal Africa’s potential. Countries like Algeria, Nigeria, Egypt, Kenya, South Africa, Ethiopia, and others have made significant strides by launching small satellites, though these have largely relied on partnerships with non-African entities. However, the launch of TAIFA-1 in April 2023 — a satellite designed and built mostly by Kenyan engineers at SayariLabs and launched by SpaceX—marked a turning point [6]. This achievement highlights Africa’s growing competence in space technology and signals that African companies are capable of developing satellites and space infrastructure independently.
By entering the space sector now, private African companies can capitalize on growing global demand, while fostering homegrown innovation and positioning themselves as pioneers in a high-growth, high-reward industry. The stage is set for Africa’s technology firms to transform the continent into a key player in the global space race.
Africa’s Space Ambitions: Advancing the African Union’s (AU) Vision 2063
Given Africa’s colonial history and past reliance on foreign-controlled orbiting assets, it is essential for African nations to develop their own satellite capabilities. This shift would reduce costs for satellite bandwidth rentals in telecommunications and lessen dependence on external entities for critical functions like financial transactions, education, agriculture, climate monitoring, and even national security.
The African Union’s (AU) Space Policy adopted by heads of states in 2016, aims to establish a cohesive and sustainable space program tailored to Africa’s socio-economic needs [7]. It targets positioning Africa as a leading global space player by 2063 [8] through the advancement of locally developed and African-funded space capabilities. The policy document emphasizes public and private partnerships to drive innovation, build capacity, and optimize resources, ensuring the development of a competitive African space industry. It also incorporates a governance framework that prevents duplication across the continent [9]. By aligning efforts at local, regional, and continental levels, it aims to ensure streamlined management and coordination, fostering collaboration and minimizing redundancy.
Ethiopian Airlines: A Case Study of Readiness to Venture into the Space Industry
In my opinion, Ethiopian Airlines, taken as an example, is one which could spearhead Africa’s entry into small satellite manufacturing and satellite internet services. Founded over 7 decades ago when an African-owned air carrier was unthinkable, it is now a global leader in aviation. Today, it possesses the advanced technical expertise required to expand into SmallSat manufacturing and satellite internet services. By entering the satellite sector, Ethiopian Airlines will tap into a growing market and establish itself as an African pioneer in an emerging industry.
- A Global Aviation Leader Poised for Diversification
Ethiopian Airlines, established in 1945 [11], is the fourth-largest airline globally by the number of countries it serves, exemplifying the potential for African enterprises to successfully venture into new sectors. In 2023, the airline operated flights to 68 cargo and 135 passenger destinations across Africa, the Middle East, Asia, Europe, and the Americas [12]. During the 2023/24 financial year, Ethiopian Airlines reported an impressive $7 billion in revenue and transported over 17 million passengers, marking a 23% increase year-to-year [12,13]. Even so, the competition in the aviation industry being intense, diversifying by expanding into the space sector will, in my view, still be a wise strategic move for the Company.
- Its Technical Expertise: The Foundation for Entry in The Satellite Market
The airline’s extensive technical capabilities position it favorably to expand into small satellite production and sales (11). Ethiopian Airlines owns Africa’s largest jet engine repair facility, providing it with significant expertise in high-precision engineering and complex mechanical systems. The airline’s proficiency spans aircraft electronics, avionics, and radar systems, which are technologically as intricate as satellites’ avionics and subsystems. Additionally, the company’s experience in converting large passenger planes into cargo aircraft demonstrates its ability to perform substantial structural modifications and integrate advanced systems. Its evolving technical management reflects a strong grasp of contemporary aerospace engineering and advanced technology management. Overall, with a history of innovation and a nimble management approach, Ethiopian Airlines is well-positioned to venture into satellite production, solidifying its role as a competitive player in the emerging satellite sector.
- Its Education and Talent Development That Can Foster Space Ambitions
Ethiopian Airlines’ Aviation University (14) offers bachelor’s programs in Aeronautical Engineering and an MBA in Aviation Management, reinforcing its commitment to cultivating talent for the aviation sector. The airline’s robust organizational infrastructure, management practices, and certified pilot training programs, along with its expertise in avionics maintenance, engine servicing, and efficient cargo operations, provide a solid foundation for diversifying into satellite assembly, testing, and delivery.
- Strategic Acquisitions and Partnerships for Success
Expanding into satellite manufacturing will require strategic partnerships, acquisitions, investments in specialized infrastructure and technology, obtaining regulatory approvals. Initially, Ethiopian Airlines will likely need to collaborate with international companies to access advanced space technology and expertise. I believe that acquiring SmallSat companies should also be an important part of the strategy. Some of the many potential partners, acquisition targets, and smallSat companies that could be considered are listed below:
- Indian Companies: L&T Technology Services; Godrej Aerospace; Alpha Design Technologies, and smallSat companies in India.
- American Companies: Planet Labs; Terran Orbital; Heraeus, Mbraun, Angstrom Engineering; other SmallSat companies in the United States.
- Canadian Companies: AES Clean Technology; Innotech Alberta, and smallSat companies in Canada.
- European Firms: Rentschler REVEN; Vitra Bioscience; Surrey Satellite Technology Ltd and other SmallSat companies in Europe.
Partnering with or acquiring SmallSat companies will equip Ethiopian Airlines with essential custom clean room solutions and satellite assembly/testing equipment, quickly positioning it as a significant player in satellite manufacturing. These collaborations/acquisitions can also grant access to advanced technology, supporting high-quality missions and satellite-based internet services.
Fulfilling African Union’s (AU) Agenda 2063
I am convinced that African tech firms—whether private or for-profit state-owned—have a unique opportunity to leapfrog into satellite production and satellite-based internet services, marking a transformative moment for the continent’s technological and economic growth. This bold move will establish Africa as a formidable player in the global space industry, driving socio-economic progress while complementing the slower-paced, government-led space programs. With competitive advantages like lower labor costs, African tech companies can provide innovative solutions on a global scale. There will certainly be challenges along the way, but I’m confident they’ll be overcome—African companies tackle even bigger obstacles every day.
More importantly, investing in the space sector will be key to fostering economic growth and reinforcing national sovereignty. By developing the right expertise, infrastructure, and partnerships, Africa’s tech leaders can fast-track the continent’s entry into a space-based economy. This step will not only unlock Africa’s full potential but also align with the long-term goals of the African Union’s Agenda 2063, securing a prosperous and independent future for the continent. The time to act is now, and the possibilities are boundless.
Brook Lakew (PhD) is currently a NASA Emeritus and Senior Fellow at Goddard Space Flight Center, the largest of NASA’s space science centers. The views expressed in this opinion piece do not necessarily represent the views of the Magazine. The author can be reached at: [email protected]
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