Africa risks losing billions in telecom revenues, jobs, and infrastructure investment to offshore satellite operators expanding under lighter regulatory obligations than local telecoms companies, according to a report by the Africa CEO Forum and Askya Investment Partners, a venture firm focused on African technology and artificial intelligence.
The report argues that offshore Low Earth Orbit (LEO) satellite operators are increasingly capturing high-value customers in African markets without bearing the same licencing, tax, infrastructure, and regulatory costs imposed on local telecom operators.
The findings arrive as Elon Musk-owned Starlink has secured authorisation in at least 25 African countries. The service’s expansion has accelerated even as traditional operators grapple with rising costs, volatile currencies, costly infrastructure vandalism, and growing demand for affordable data.
Based on research and interviews with more than 30 telecom executives, regulators, government officials, and industry experts, the report warned that the imbalance could weaken a sector that supports about 8 million formal jobs, contributes more than $30 billion in taxes annually, and is projected to invest $77 billion in network infrastructure between 2024 and 2030.
