South Africa: Government department says it can save South Africa R2 trillion
February 5th 2026
South Africa has ambitions to develop and launch its own communications satellite system, which the Department of Science, Technology, and Innovation (DSTI) says will save taxpayers billions every year.
“South Africa currently spends approximately R100 billion a year on foreign communication service providers,” the DSTI stated.
“In contrast, a locally owned satellite system with a lifespan of up to 20 years would require a one-time capital investment of approximately R6 billion.”
The DSTI said this shows the immense cost-saving potential of a domestic satellite system. R100 billion per year over 20 years is R2 trillion. A once-off R6 billion investment is insignificant by comparison.
“A domestic system would also strengthen South Africa’s sovereign capabilities, as required by the national defence and security clusters,” it stated.
Dubbed the National Satellite Communication (SATCOM) strategy, work on the initiative began in 2022 following former communications minister Khumbudzo Ntshavheni’s budget vote speech.
“To enhance our broadband connectivity reach and in line with the 2016 Cabinet decision, South Africa is now ready to launch its own communications satellite,” she stated.
Ntshavheni said in 2022 that the satellite would be developed and launched through Sentech in partnership with the South African National Space Agency (SANSA) and all other key stakeholders.
“The communications satellite will address both media and broadband connectivity objectives and will entrench our technology and data sovereignty,” she stated.
“This will reduce satellite capacity leasing costs, not only for government but other industries reliant on communication satellite technology for their businesses and improve information security for our country.”
Nearly four years after her speech and ten years since the Cabinet decision, South Africa still does not have a sovereign communications satellite in space.
Instead, the SATCOM strategy remains under discussion and must obtain Cabinet approval before it can be released for public comment. It could be years before a decision is taken to actually launch a satellite.
Over three years and still no SATCOM
The last update on SATCOM from the Department of Communications and Digital Technologies (DCDT) and DSTI was published on 1 April 2025, following a Parliamentary Portfolio Committee meeting.
In a joint statement, the departments said they were collaborating in the development of a satellite communication strategy for South Africa.
SATCOM aims to establish a domestically owned satellite system that provides affordable, reliable, and secure communication infrastructure.
“Over the past three years, the departments and their entities, Sentech and the South African National Space Agency, have worked together to develop the strategy,” they stated.
“It is expected to significantly enhance digital inclusion, support economic growth, and bolster essential services such as e-government, telemedicine and rural telephony.”
Following extensive consultations and feasibility studies, the strategy has received sign-off from the Presidency on the Social Economic Impact Assessment System process.
The next phase involves further government cluster consultations and public engagement before final Cabinet approval.
In the context of sovereignty, MyBroadband asked the DCDT whether South Africa’s lack of launch capability was an issue. It did not respond by publication.
“The acquisition and operation of the satellite will be managed by a national satellite organisation through a strategic partnership with an international satellite fleet operator,” the departments said in a 2025 statement.
“This will ensure sovereignty over critical communication infrastructure.”
The departments also said that the satellite industry offers vast opportunities for skills development, job creation, industrial growth, and self-reliance in national security.
“The satellite communication strategy initiative will foster new technical expertise throughout the satellite’s lifecycle — from design and construction to launch, operation and maintenance,” they said.
“This will create sustainable, high-skilled jobs and stimulate the local space industry.”
In the presentation to the Parliamentary Portfolio Committees on communications and science and technology, the departments explained that the envisioned satellite would be geostationary (GEO).
GEO satellites have much higher latency and slower speeds than their low-Earth orbit (LEO) competitors.
The departments also said that the satellite would be used to offer broadband services to underserved households in South Africa.
MyBroadband asked the DCDT why people would choose to use the government’s GEO satellite in a world where LEO is readily available. It did not respond by publication.
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