The trade, industry and competition ministry has published a draft Space Industry Regulatory Bill that would require a licence for any activity that involves building, launching or operating a satellite. The proposal, announced by minister Parks Tau in the Government Gazette on 1 November, creates a new offence for unlicensed manufacturing of space objects and sets penalties of up to ten years in prison, a fine of any amount, or both.
Under the current Space Affairs Act of 1993, licences are only needed for launches, launch facilities and certain international engagements. The draft expands the list to nine activities, including the manufacture of a space object, the utilisation of space applications, sub-orbital launches, operating satellites in orbit, running launch sites and the exploration and exploitation of outer space. The bill also introduces a requirement for liability insurance equal to the value of the space object, a provision that does not exist in the 1993 act.
The new regulatory framework would be overseen by the South African Space Regulatory Authority (Sasra), a body of up to fourteen members appointed by the minister. Compared with the existing South African Council for Space Affairs (Sacsa), Sasra would have fewer industry seats, at least one industry representative versus the two required under the older structure, and could include up to three expert members who work for licence holders. Day-to-day administration would be handled by a new National Office for Outer Space Activities (Noosa), which would act as the authority’s secretariat and maintain a national space registry.
Implications for the industry
The broader licensing regime is likely to affect companies that are already moving into the space value chain. NewSpace Systems, based in Somerset West, opened what it calls Africa’s largest space hardware factory in March. Whether the company will need a licence to produce components will depend on how the bill defines “manufacture of a space object”. The draft does not clarify if making parts for a satellite counts as manufacturing, leaving a gap that could create compliance uncertainty.
Downstream businesses that process satellite data, such as Earth observation (EO) firms, geospatial service providers and companies that apply artificial intelligence to space-based data, may also fall under the new authorisation requirements. The bill does not define “space applications”, so firms that build services on satellite data could be required to obtain a licence, a point that industry observers are watching closely.
Nomfuneko Majaja, chief director of space affairs, highlighted low-hanging-fruit opportunities for developing economies, citing EO, geospatial analytics and component manufacturing as areas that can generate immediate economic value. The draft bill appears designed to capture those activities within a formal regulatory environment, potentially unlocking insurance and financing options that were previously unavailable to unlicensed operators.
Companies will also need to secure insurance that matches the value of their space objects, with the required cover set by the minister in agreement with the finance minister. While the 1972 Convention on International Liability for Damage Caused by Space Objects places ultimate liability on the state, the bill would require operators to reimburse the government for any damage caused by objects launched from South African territory.
Public participation is built into the process. The draft notice invites comments for 60 days from the date of publication, or until late December, and names Nomfuneko Majaja as the contact for submissions. Stakeholders can submit feedback through the government portal, and the minister may consider an independent advisory committee chaired by a retired judge for appeals.
For businesses, the key question is how quickly the regulatory environment will solidify and what compliance costs will look like. The absence of a maximum fine means penalties could be substantial, while the insurance requirement adds an ongoing expense. At the same time, a clear licensing regime could reduce uncertainty for investors and insurers, potentially attracting more capital to South Africa’s nascent space sector.
Overall, the draft bill signals a shift from a narrow, launch-focused approach to a more comprehensive oversight of the entire space ecosystem. Companies that can adapt to the new requirements may find themselves better positioned to compete in regional and global markets, while those that cannot may face legal and financial risks.
Readers can review the full draft in the TechCentral article and follow ongoing developments in the Tech & Telco section.
