Abu Dhabi-based Space42 is making an audacious play in Africa’s satellite internet market, setting its sights on Elon Musk’s Starlink, which already enjoys a dominant position on the continent. Backed by sovereign wealth fund Mubadala, Space42 is raising new funds to scale across Africa, building on its existing presence in South Africa and Zimbabwe and targeting high-growth markets such as Nigeria, where Starlink has quickly gained traction.
CEO Hasan Al Hosani says the company is in early discussions with potential partners, including the African Union Development Agency, Microsoft, and data center firm Esri. While no funding target has been set, Space42’s strategy is clear: use strategic partnerships and capital investment to accelerate its footprint, deliver connectivity to schools and clinics, and capture share in a market Starlink has been first to exploit. “Satellite connectivity has the power to bridge Africa’s digital divide,” Al Hosani said, pointing to the continent’s youthful, fast-growing population as both a challenge and an opportunity.
Starlink, launched by SpaceX, currently operates in 18 African countries, including Nigeria, where it has become the second-largest Internet Service Provider with more than 59,000 subscribers as of Q1 2025. With over 8,000 low-earth orbit satellites already in operation, Starlink enjoys a scale advantage few can rival. In South Africa, the company recently committed $28 million to connect 5,000 rural schools, reaching an estimated 2.4 million children. These moves highlight both Starlink’s capital strength and its ability to position itself as a partner in development, not just a commercial ISP.
For Space42, the opening lies in the gaps left by traditional telecom operators, many of which continue to struggle with last-mile connectivity. Across Africa’s 54 countries, millions of people—particularly in rural areas—remain offline. Demand for internet access is rising rapidly, driven by education, e-commerce, and social media adoption. If Space42 can provide affordable, reliable coverage while navigating the continent’s fragmented regulatory landscape, it could establish itself as a credible competitor.
The regulatory challenge is no small task. Each African nation has its own licensing framework, often tied to sensitive issues like data sovereignty and local ownership. In South Africa, for example, Starlink has had to pursue approval through the Equity Equivalence Investment Program (EEIP) to meet B-BBEE regulations without ceding 30% ownership. Space42 will encounter similar hurdles in Nigeria and elsewhere, where regulators balance the need for foreign investment with pressure to protect local industry.
Still, the Abu Dhabi firm is not without advantages. Mubadala’s financial firepower gives Space42 credibility, while partnerships with institutions such as Microsoft and Esri provide access to digital mapping, infrastructure, and data center support. These collaborations could help Space42 move quickly to establish physical presence in key markets, while also giving African governments reassurance that the company is committed to long-term development, not just short-term commercial gain.
The competition, then, is shaping up as a classic battle: a first mover with unmatched scale versus a challenger with deep pockets, strategic alliances, and a focus on regulatory engagement. Market forces are intensifying, and with millions of Africans still clamoring for affordable, high-speed internet, the opportunity is vast. The question is not whether satellite internet will reshape Africa’s connectivity, but who will define that future.
For now, Starlink’s early lead and heavy investment give it the upper hand. But Space42’s willingness to partner broadly and align with development agendas could earn it goodwill where regulatory politics are decisive. In Africa’s connectivity race, the winners will be those who can blend affordability, reliability, and compliance with local expectations.
Africa’s digital future is up for grabs. Space42 has entered the arena; now it must prove it can go the distance against Starlink.
