The European Space Policy Institute just released its 2023 annual report, which projects a 32% reduction in overall investments in 2023, totalling $7.62 billion.

The global reduction in private sector investment during the past fiscal year has not spared Africa's space industry.

The European Space Policy Institute just released its 2023 annual report, which projects a 32% reduction in overall investments in 2023, totalling $7.62 billion.

Africa's space start-ups have raised approximately $233 million since 2015, with 84% of the total raised since 2021.

This is far less than other markets, such as Europe, which, despite a 7% reduction, managed to attract $1.19 billion in investment.

Although the United States is by far the most attractive region for investment, it is also driving the decline trend.

According to the research, there are several causes for the decrease in investment:

i. The Special Purpose Acquisition Companies phenomenon, which reached its pinnacle in 2021 helping raise almost $3.8 bn, has largely subsided since then;

ii. Large acquisitions, which greatly boosted investment volume in 2022, have also not taken place in 2023; and

iii. Venture capital, the backbone of the new space fundraising ecosystem, has decreased considerably, reaching the lowest level since 2021 at $4.8 bn.

This year’s edition once again opens new horizons, with an expanded special focus on China and Africa.

“Ideally situated geographically, Africa could also apply learnings from other countries in order to accelerate up the development curve. Several foreign governments and private sector firms have committed to helping the continent develop its space sector, among them the EU, Russia, and China,” says the research.