African Space Economy’s Funding Gap: Lomé Forum Highlights Need for Strategic Investment
The burgeoning African space economy, projected to reach $39.52 billion by 2030, is grappling with a significant funding deficit, a central theme at the second edition of Space Forum Africa held in Lomé, Togo. The event, which convened space agencies, start-ups, and development banks from July 28-31, underscored the disparity between the industry’s impressive valuation and the modest public investment it receives.
According to Space in Africa, the continental space economy was valued at $24.95 billion in 2026, with an anticipated annual growth rate of 7.97%. However, public budgets allocated by African states to the sector amounted to only $828.37 million in the same year. This stark imbalance, a ratio of approximately thirty to one, highlights the sector’s heavy reliance on telecommunications operators, downstream data services, and, crucially, external capital.
This funding challenge formed the crux of discussions at the forum, organised by Togolese company African Geospace under the theme “Building Africa’s Space Future: Innovation, Defense, and Sustainability.” The initial day was dedicated to an investment forum, followed by panels addressing critical areas such as Earth observation, space cybersecurity, geospatial artificial intelligence, and access to orbit, culminating in the anticipated “Lomé Declaration.”
A notable development this year was the increased engagement from development banks, including three officials from the West African Development Bank (BOAD). BOAD, headquartered near the forum venue, recently launched its five-year plan, “Djoliba, la suite,” with a substantial budget of approximately 10 billion euros. While space is not explicitly listed as a primary focus, the presence of BOAD officials signals a potential avenue for financing, provided satellite data is viewed as a core sector rather than merely a monitoring tool for other financed projects.
Fiacre Kakpo, editor-in-chief of Agence Ecofin and Director of Togo First, articulated a key argument: African space initiatives are already being funded, albeit under different classifications. Satellite imagery, for instance, supports climate adaptation, smart agriculture, land registry modernisation, and customs control – all areas that attract donor funding and national budgets, even without explicit “space” allocation. The strategic imperative, therefore, is to formalise and increase these existing financial flows by demonstrating tangible revenue generation, such as through property tax enhancement or improved customs collection rates. Securing anchor clients, including states, development banks, and large corporations, is vital for the scalability and financeability of geospatial start-ups.
Despite the establishment of the African Space Agency in Cairo and a €100 million Africa-EU partnership, the continent’s dependence on external launch capabilities remains absolute. This reliance on foreign infrastructure for satellite deployment poses a significant hurdle to true space sovereignty.
Togo’s strategic positioning as a hub for West African geospatial activities, rather than an industrial power, is evident in its hosting of such forums. The nation’s ambition to foster skills development and its broader digital agenda underpin this strategy. The ultimate measure of Lomé’s success will be the tangible integration of “space” into the financing portfolios of development banks within the next twelve months, moving beyond declarations to concrete financial commitments.
