Denel unveils plan to build Africa space hub in South Africa

South Africa’s state-owned aerospace and defense company Denel is looking to the fast-growing space sector as it works to rebuild its business and open new sources of revenue. 

The company has unveiled plans to transform its Overberg Test Range in the Western Cape into a space hub that could serve governments, research institutions and commercial operators from across Africa. 

The proposal forms part of Denel’s efforts to recover from years of financial difficulties, governance challenges and shrinking revenue that weakened one of South Africa’s best-known defense manufacturers. 

Speaking to Parliament’s Portfolio Committee on Defence and Military Veterans, Denel Chief Executive Tsepo Monaheng said the project would require more than R2 billion ($122 million) in investment.

Rather than seeking more state funding, the company plans to rely on partnerships with private-sector investors and industry players. 

The announcement comes as African countries increase spending on satellite technology, telecommunications, earth observation and space research, creating opportunities for local aerospace companies to play a bigger role in the sector.

Overberg site at center of expansion plans 

At the heart of Denel’s proposal is the Overberg Test Range near Arniston, a facility that has long been used for weapons testing and aerospace development. 

Monaheng said the company wants to expand the site into a full-scale “space campus” that would provide launch services for customers across the continent.

The project would also support satellite development and ground-station infrastructure, creating a broader space ecosystem within South Africa. 

“We are looking to create a business from space,” Monaheng told lawmakers. He said the company sees growing demand for space-related services across Africa and wants to position itself to meet that demand.

Partnerships key to funding strategy 

While Denel has outlined an ambitious vision, the company lacks the capital needed to fund the project on its own. 

Monaheng said strategic partnerships will be critical to making the plan a reality. Denel is already exploring opportunities in several markets, including Brazil, while strengthening cooperation with research organizations such as the Centre for Scientific and Industrial Research. 

“We don’t have R2 billion($122 million), but with the right partners we believe we can achieve it,” he said, stressing that collaboration would be essential to building competitive launch capabilities.

Beyond launches and satellites 

The strategy stretches beyond the Western Cape. Denel plans to manufacture satellites and ground systems at its facilities in Gauteng, linking production with launch operations at Overberg. 

The company is also seeking to expand its work in unmanned aerial vehicles and low-Earth-orbit satellites while modernizing existing products through partnerships with global aerospace firms.

Monaheng said these efforts are aimed at keeping Denel competitive in a rapidly changing technology and defense market while helping South Africa strengthen its position in Africa’s growing space industry.