To rev up economic growth engines and tackle the intertwined challenges of poverty, inequality and unemployment, SA needs every sector to operate at peak performance. The space sector in particular is brimming with potential, offering substantial economic, technological and societal gains.
In recent times the space economy has shifted away from being dominated by superpowers. Many countries are reaping significant returns on their investments in space-related projects. SA is strategically placed to have a greater effect in this rapidly evolving sector, thanks in part to its geographic location in the southern hemisphere, offering a unique vantage point for space observation, satellite tracking and launching.
With its clear skies, the country is ideal for astronomical observations and radio astronomy, backed by growing tech hubs, particularly in the Western Cape. However, realising this promise requires increased strategic investment, robust public-private partnerships, international co-operation, and targeted support for education to build a sustainable talent pool.
Partnerships and skills development are fundamental for advancing the local space sector and, consequently, strengthening the economy. Pumping more resources into science, technology, engineering and mathematics (Stem) education across all levels will, for the most part, ensure a steady supply of much-needed skills. This will support not just the space economy but also other vital sectors of the economy, such as healthcare and finance. Research regularly shows that countries with strong Stem human capital are competitive, productive and achieve high economic growth.
Investing in the space economy offers many benefits for our economy and daily life. For instance, satellite technology plays a crucial role in communication, weather forecasting, disaster management and environmental monitoring. Given the challenges of climate change, such as droughts and severe weather, these capabilities have become more important than ever. Improved satellite connectivity can bring internet access to remote and underserved areas, helping to bridge the digital divide. Greater connectivity can also boost access to education and skills, which, in turn, can increase employment opportunities.
Advancements in space technology often result in innovations that improve life here on Earth. Research for space missions has driven progress in medical devices, materials science and renewable energy technologies. Developing a strong space economy can stimulate growth in these areas, diversifying and strengthening our economy. These efforts are critical for creating more jobs and alleviating poverty.
A global opportunity
The space sector holds immense significance. A recent report by the World Economic Forum and McKinsey predicts that the global space economy will expand from $630bn in 2023 to $1.8-trillion by 2035. This growth includes vital services such as satellites and launchers, as well as applications where space technology aids businesses across various industries. Key growth drivers highlighted in the report include the need for better satellite connectivity, increased demand for positioning and navigation services on mobile phones, and a rising demand for AI and machine learning-powered insights.
The Western Cape is making significant progress in advancing the space sector, with strong support from both public and private sector partners, all focused on achieving sustainable growth. Recently, the US National Aeronautics & Space Administration (Nasa) and the SA National Space Agency (Sansa) met the Western Cape education department and Wesgro during a visit to the new Deep Space Station scheduled to launch in 2025 in Matjiesfontein, a rural town near Cape Town. This project, led by Sansa with Nasa’s support, aims to promote deep space exploration and improve communication with satellites, probes, rockets and planets.
Discussions included expanding education programmes to uplift surrounding areas and cultivate domestic space-related professionals. Collaborative efforts such as these could pave the way for a comprehensive school space programme, designed to groom future space scientists and tackle national skills shortages through a focus on Stem subjects. Offering scholarships and internships, and encouraging collaborations with international space agencies, will provide valuable training and experience.
Looking ahead, a clear and supportive regulatory framework is crucial for the local space sector to hit new heights. Targeted policies promoting innovation, protecting intellectual property and maintaining ethical standards will benefit both public and private entities. Initiatives such as space incubators and accelerators can give start-ups and SMMEs a leg up, cultivating a dynamic space ecosystem. Establishing and maintaining state-of-the-art facilities such as launch sites, research labs and data analysis centres is crucial to support a range of activities from satellite development to space tourism, enhancing SA's global competitiveness.
Learning from global leaders
Countries such as the US, China and India have demonstrated how prioritising the space sector can spur economic growth and innovation. The US, through Nasa and partnerships with private firms such as SpaceX and Blue Origin, has cultivated a multi-billion-dollar industry that generates jobs, drives technological breakthroughs and promotes international co-operation. China's ambitious space programme has accelerated technological advancements, contributing significantly to its economic expansion and global reputation. India's cost-effective missions have showcased its technological prowess, attracting global investments and forming international alliances.
Luxembourg provides a compelling example for smaller nations. Despite its size, the country has established itself as a major player in the space sector by creating a favourable regulatory environment and offering financial incentives for space companies. This strategic focus has attracted numerous space-related businesses, positioning Luxembourg as a global hub for space mining and satellite communications. The space sector’s contribution to Luxembourg’s GDP ranks among the highest ratios in Europe. We can take a page from these countries’ books by increasing public investment, encouraging private sector participation and strengthening international partnerships.
Wesgro, as the official agency promoting tourism, trade and investment in Cape Town and the Western Cape, champions collaboration and innovation to drive inclusive and sustainable economic growth across our region. With this ethos guiding us, we are preparing to launch a study to assess the local economic effect of the space sector. Our aim is to identify investment opportunities and areas where growth can be accelerated.
With strategic support, SA’s broader space economy holds significant potential for success, creating jobs and positioning the country as a key global player. The foundational elements are already in place — it is time to capitalise on this potential and lift our economy to new horizons.
• Stander is CEO of Wesgro, the official agency for promoting trade and investment in Cape Town and the Western Cape.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.