South Africa's proposed new space law introduces a requirement to obtain a license from a new regulator for satellite construction, thereby expanding the scope of regulation of the local space industry compared to the 1993 law.
The draft South African Space Industry Regulation Bill, published by Minister of Trade, Industry and Competition Parks Tau in the Government Gazette on Friday, lists 'space object manufacturing' and 'use of space applications' among nine activities requiring permits. The remaining activities include launches, including suborbital ones, operation of satellites in orbit, management of launch sites and other space objects, as well as 'space exploration and utilization.'
Anyone engaging in one of these activities without the appropriate permit may face a fine or imprisonment of up to 10 years, or both penalties. However, the bill does not specify a maximum fine amount.
In contrast, the 1993 Space Act has a narrower scope. It requires licenses only for launches, operation of launch facilities, and participation of South African companies in space activities that entail international obligations or 'may affect national interests,' as well as for anything prescribed by the minister. Manufacturing is not included in its list. It also provides for a maximum prison term of 10 years for unlicensed activity but limits fines to an amount of 1 million rand.
This bill appeared one day after the Department of Trade, Industry and Competition published comments from its Chief Director of Space Affairs, Nomfuneko Majaji, who is listed in the gazette notice as the public opinion contact person. Speaking at a panel organized by UNCTAD at the World Investment Forum in Doha on October 25–27, Majaji stated that developing countries are not obliged to start with the most capital-intensive aspects of the space economy.
She noted that there are significant low-entry-barrier opportunities that can bring immediate economic and developmental value depending on the level of development of the countries—such areas as Earth observation (EO), geospatial applications, AI-driven space data processing, data analysis, and digital services.
Majaji also highlighted component manufacturing, noting that South Africa possesses industrial and engineering capabilities that can be developed 'to increase domestic participation in satellite and space system value chains.' These are the sectors the new bill may cover. It defines a space object as 'an object launched or intended to be launched into outer space' but does not clarify whether the manufacturing of components for such an object constitutes manufacturing. This could be significant for companies like NewSpace Systems from Somerset West, which allegedly opened the largest aerospace equipment factory in Africa in March. Furthermore, the bill does not define 'space applications,' leaving open the question of whether firms creating satellite data-based services—the lower-tier enterprises Majaji pointed to—will require permits.
The bill applies to South African citizens, permanent residents, and companies, including activities carried out abroad on their behalf. Permit holders will also be required to have insurance equivalent to the value of the space object, as well as liability insurance. The 1993 Act does not mention insurance, although it allows license conditions to regulate liability.
The state is responsible for damage in accordance with the 1972 Convention on International Liability for Damage Caused by Space Objects, but operators must indemnify the state for damage caused by objects launched from South African territory. The minister, in consultation with the Minister of Finance, will establish the required liability coverage.
New Regulator
The bill provides for the establishment of the South African Space Regulatory Authority (Sasra), which will consist of up to 14 members appointed by the minister. This guarantees fewer seats in the industry than in the current South African Space Council (Sacsa): the 1993 law requires two industry representatives, whereas the bill requires 'at least one representative from the space industry.' Up to three expert members of the authority may be employees authorized to issue permits.
Appeals will still be directed to the minister, but the minister may appoint an independent committee chaired by a retired judge to advise on them. Decisions to suspend or revoke a permit can be reviewed by the Court of Appeal.
Daily operations will be entrusted to the new National Office for Space Affairs (Noosa)—a civil service division that will function as the authority's secretariat and maintain the national register of space objects. The public has 60 days from the Friday publication—or until the end of December—to submit comments.
