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South Africa could save R2 trillion with its own satellite, so why is it still waiting?
Why the numbers have everyone talking
South Africa is spending eye-watering money every year just to stay connected. According to government estimates, roughly R100 billion goes annually to foreign communication service providers. That bill keeps coming, year after year, with nothing local to show for it.
Now imagine flipping that script. The Department of Science, Technology, and Innovation says a locally owned communications satellite would cost about R6 billion as a once-off investment and could operate for up to 20 years. Do the maths and the contrast is stark. Over two decades, current spending adds up to R2 trillion. Against that, the cost of building a local satellite barely registers.
It is a comparison that has lit up tech circles and policy debates, especially at a time when every rand of public spending is under scrutiny.
The SATCOM promise and why it matters
The plan is known as the National Satellite Communication strategy, or SATCOM. Work on it began in 2022, building on a Cabinet decision first taken back in 2016. The idea is simple on paper. South Africa would own and operate its own communications satellite, reducing dependence on foreign providers and keeping more money in the local economy.
Beyond the savings, government departments argue that a domestic satellite would strengthen national security and data sovereignty. In plain terms, it means greater control over critical communications infrastructure, which is increasingly seen as a strategic asset rather than just a utility.
The satellite is intended to support both media broadcasting and broadband connectivity, with a strong focus on underserved and rural communities. Think e-government services, telemedicine, rural telephony, and wider broadband reach in places that still struggle to get reliable connections.
Years of talk, still no satellite
Here is where public frustration starts to creep in. Nearly four years after the 2022 announcement and almost a decade after the original Cabinet decision, South Africa still does not have a sovereign communications satellite in space.
As of April 2025, the SATCOM strategy is still moving through government processes. Departments say extensive consultations and feasibility studies have been completed, and the strategy has received sign-off from the Presidency on the social and economic impact assessment process. The next steps involve further consultations across government clusters, public engagement, and finally, Cabinet approval.
Only after that can the real work begin. That means the actual launch could still be years away.
On social media, reactions tend to fall into two camps. Some see the plan as long overdue and question why a country with South Africa’s technical talent has taken so long. Others are more sceptical, pointing to previous large-scale infrastructure projects that promised savings but struggled with delays and cost overruns.
Who would build and run it
The satellite would be developed through Sentech, working alongside the South African National Space Agency and other stakeholders. Government has said the acquisition and operation would be managed by a national satellite organisation, in partnership with an international satellite fleet operator. This, they argue, would still preserve sovereignty over critical infrastructure.
There is also a strong jobs and skills angle. Officials say the satellite industry offers opportunities across the entire lifecycle, from design and construction to launch, operation, and maintenance. In theory, this could help grow a local space and high-tech sector while creating specialised, long-term jobs.
A tech question nobody has answered
One detail that has raised eyebrows is the type of satellite being proposed. The departments have confirmed the system would be geostationary, known as GEO. These satellites sit much further from Earth and generally have higher latency and slower speeds than low Earth orbit satellites, which have become more common globally.
In a world where fast, low-latency satellite internet is increasingly available, some analysts are asking a blunt question. Why would households choose a government-run GEO service when LEO options exist? So far, there has been no clear public answer.
That silence feeds into broader concerns about whether the strategy is keeping pace with rapid changes in satellite technology.
Big savings, big decisions still ahead
On paper, the case for a South African communications satellite is compelling. The potential savings are enormous, the sovereignty arguments are strong, and the promise of better connectivity for underserved communities is hard to ignore.
But until the strategy clears Cabinet and moves from planning to action, it remains a powerful idea rather than a tangible solution. For now, South Africa keeps paying billions abroad, while the R2 trillion question hangs in the air. How long can the country afford to wait?
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Source: MyBroadband
Featured Image: Daily Investor
