Young, tech-savvy African consumers are driving demand for high-speed internet. (Photo illustration: Scott Olson/Getty Images)
A new battle for Africa's satellite market is underway between the United States and Europe, as France aims to connect 26 African countries with high-speed space internet.
Thales Alenia Space, one of Europe's largest manufacturers of communications, navigation and surveillance satellites, has signed a memorandum of understanding with Moroccan private equity firm Panafsat to develop Moroccan geostationary communications satellites.
As part of the memorandum of understanding, the companies said in a joint statement that Thales Alenia Space will develop “highly capable and flexible satellites that will accelerate Africa's digital transformation and collectively serve a population of more than 550 million people.” He said he would develop.
Ahmed Toumi, Chairman and Chief Executive Officer of Panafsat, said that the project is the next important step in the digital transformation process and the development of the digital economy in Morocco and across Africa.
“It will transform the lives of millions of people who are eagerly reaping the benefits of internet access and all the critical services they need,” he said.
The memorandum of understanding was signed during French President Emmanuel Macron's state visit to Morocco at the end of October, in the presence of Nadia Fettah Alaoui, Moroccan Minister of Economy and Finance, and Antoine Armand, French Minister of Economy, Finance and Industry.
Most of the target African markets (23 countries) are French-speaking, with the remaining three countries being English-speaking.
“This project will make a significant contribution not only to closing the rural digital divide, but also to fostering economic growth and strengthening digital sovereignty across the African continent,” said Thales Alenia Space Chief Executive Officer (CEO) Hervé Deray said.
Thales Alenia Space's entry marks an important milestone on the continent, with American spacecraft maker SpaceX recently selling out its Starlink terminals in five of 12 African countries, including French-speaking Madagascar. It was carried out at the time when it was recorded.
Since Starlink began expanding into the continent more than a year ago, it has faced a number of regulatory hurdles, particularly in French-speaking countries such as Ivory Coast, Burkina Faso, Democratic Republic of Congo and Senegal.
However, there are encouraging signs in most French-speaking countries, and Starlink's coverage map highlights availability prospects in these markets by the end of 2024 to the end of 2025.
Starlink plans to launch services in Mauritania, Senegal, Ivory Coast, Gabon and Chad by the end of the year, and in countries including Burkina Faso, Niger, Cameroon and the Democratic Republic of Congo in 2025.
Starlink is approved to operate in Mozambique, Eswatini, Botswana, Rwanda, South Sudan, Burundi, Benin, Ghana, Sierra Leone, Malawi, Zimbabwe, Kenya, Nigeria, Zambia and Madagascar.
Thales Alenia Space's entry into Africa is part of Elon Musk's strategic plan to counter the shrinking “conventional communications satellite market” in Europe due to increased competition for commercial customers from global rivals such as Starlink. It is also considered that
European aerospace group Thales, which owns 67% of Thales Alenia Space, is partnering with another pan-European aerospace group, Airbus (also headquartered in France), to challenge the market-dominant company. It is reported that the two companies are considering merging their satellite businesses. According to the Financial Times and Reuters, competition is fierce.
Research and Markets predicts that the global small satellite market will grow from USD 5.2 billion in 2024 to USD 11.2 billion by 2029, driven by increased demand for commercial satellites fueling small satellite launches.
According to the Research and Markets report, “It has gained wide acceptance due to its affordability, short development time, and use for a variety of purposes, including communications and Earth observation.”
According to the International Telecommunication Union (ITU) 2023 facts and figures According to the report, 37% of Africa's population will have access to the internet in 2023, up from just 16% in 2013.
Young and tech-savvy African consumers are demanding high-speed internet, driven by the rise of streaming, online gaming, voice calls over the internet, and remote working and learning, which is driving demand.
However, Africa's connectivity rate is 37%, lower than the global average internet usage of 67%, sparking a race for satellite internet on the continent.
— Torimogatari Agency
