The untapped potential in Rwanda’s space economy

Rwanda has fairly made progress in the last few years towards laying a foundation for the space industry, preparing the country to tap into the economic potential the sector holds. The country is one among the many that are increasingly leveraging commercial use of space – which is essentially the provision of goods and services of commercial value by using equipment such as spacecraft and satellites – with hope to derive greater value from the industry. ALSO READ: Rwanda Space Agency: Creating opportunity for emerging space economy While the space has long been utilized by governments and large telecommunication companies, multiple private companies have ventured into the industry to drive innovation. The World Economic Forum estimates more than 10,000 firms and around 5,000 investors to be involved in the space industry. The Space Foundation’s 2022 space report indicates that private sector funding in space-related companies topped $10 billion in 2021, about a tenfold increase over the past decade. The space economy was valued at $469 billion in 2021, a 9 per cent increase from 2020, the highest recorded growth since 2014. Investment in the space sector advances technological developments which bring ripple effects across critical sectors of the economy and contributes to the improvement of people’s livelihoods. Wilson Kagabo, Managing Director of Locus Dynamics (LD) – a Rwandan company in aerospace development, said satellite imageries have been used worldwide for a long time now, but the technology keeps improving over time. This presents greater opportunities for private sectors in a country like Rwanda which has a relatively nascent industry, to grow in the area of operating and managing micro satellites by leapfrogging available technologies. LD recently signed an agreement with SatRev, a Polish space company, to develop satellite systems that will be used for earth observation and images which can be sold globally. ALSO READ: Rwandan firm inks satellite solutions deal with Polish space company' Earth observation satellite imagery is used for precision agriculture, disaster management, infrastructure planning, among other applications. Despite the infant stage of the space industry, Kagabo noted that different initiatives taken have moved the country from a consumer to becoming an active service provider as part of the value chain. “Our hope is opening the door for other private companies to tap into the space economy which is a huge industry with great socioeconomic potential. The more we participate in this industry, the better for the economy,” he said. While there is little to no competition in the space industry in Rwanda yet, Kagabo believes the country is well positioned to continue to progressively grow and become one of the leaders in the industry. “More efforts should be invested in building human capacity to boost available skill sets of a pool of Rwandans with theoretical knowledge that can be enabled to acquire practical skills in the space industry.” ALSO READ: Rwanda Space Agency official discusses priorities as body steps up awareness effort In 2020, the government established Rwanda Space Agency (RSA) to coordinate all space activities in the country with a mission to develop the country’s space sector towards socio-economic development, using space-based technologies and applications. According to Col Francis Ngabo, RSA CEO, key among the priorities is to drive the participation of the private sector in the space industry, and enhance education to ensure that adoption happens fast. Unlike other traditional sectors that take long to develop, Ngabo emphasized the urgency to develop the space industry in Rwanda, highlighting that his agency was working towards developing innovative ways to expedite the pace at which Rwanda develops the space industry. “This urgency stems from the untapped potential that we see to deliver essential space services. These services are key to boost sustainable economic, social, and governance transformation,” he said. RSA in partnership with Westerwelle Startup Haus Kigali launched the Innovation for SpaceTech Acceleration in Rwanda (iSTAR) programme designed to empower startups in harnessing the potential of satellite imagery and geospatial data to address critical challenges in sectors such as agriculture and food security, environmental resources, disaster management, and urbanization. Sarah Rukundo, Country Director of Westerwelle Startup, said: “We believe in the space sector and the opportunities it is offers. Our first cohort of startups is embarking soon, but we aim to accompany the sector in its growth with our tailored incubation services.” She noted that opportunities for startups in the sector remain untapped, ranging from earth observation value-added data and applications, to satellite broadband solutions tailored for businesses, educational institutions, and remote communities. Opportunities also exist in satellite assembly, integration, and testing, representing upstream possibilities in space. While RSA does not yet have an estimated value of Rwanda’s space economy, The New Times understands that to date, only a number of local companies have made entry into the industry.

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The untapped potential in Rwanda’s space economy