Africa risks losing billions to satellite internet operators, report says

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.

Satellite internet providers like Starlink are expanding rapidly across the continent and targeting high-value urban and enterprise customers that have historically generated significant revenues for telecom operators.

According to the report, Starlink had secured authorisation in at least 25 African countries as of early 2026, with around 66,000 users in Nigeria and more than 67,000 in Zimbabwe in Q4 2025, making Zimbabwe Starlink’s fastest-growing market in Africa.

The report said the competitive imbalance stems largely from differences in regulatory obligations. While telecom operators pay substantial spectrum licencing fees, invest heavily in terrestrial infrastructure, and contribute to Universal Service Funds, satellite operators are entering many markets under far lighter requirements.

In Senegal, for example, the report said traditional telecom operators paid more than $50 million for 5G licences, while Starlink obtained a licence for about $150,000.

The report warned that as satellite operators erode revenues from high-value customers, traditional telecom companies may scale back infrastructure investments, particularly in rural and low-income areas where returns are already limited. Operators in Kenya and Nigeria, it said, are showing increasing reluctance to acquire new spectrum or commit to rural network expansion as profit margins tighten.

Governments also risk losing a major source of public revenue if satellite operators continue expanding without clearer tax and licencing frameworks, according to the report.

The telecom sector currently contributes more than $30 billion in taxes annually across Africa, equivalent to 9.8% of total public revenue, the report said, citing GSMA data. Operators including MTN, Airtel Africa, and Vodacom pay significant spectrum and operating licence fees in several markets. MTN alone paid $273.6 million for its 5G spectrum licence in Nigeria.

Yet the report said subscription payments made by African households and businesses to satellite internet providers flow largely to offshore companies such as SpaceX, with limited local reinvestment or tax contributions, the report said. It warned that African governments could face growing “revenue leakage” as more digital traffic and economic value shift to operators outside their regulatory reach.

Several African countries have responded differently to Starlink’s expansion. In Senegal, regulators formally recognised Starlink as an internet service provider in February 2026 after the company initially entered the market before receiving authorisation.

Namibia rejected Starlink’s licence application in March 2026, while South Africa issued cease-and-desist orders against internet service providers facilitating access to the service. Despite those measures, the report noted that grey-market use of Starlink continues in both countries.

The report also noted that the African Telecommunications Union has warned that fragmented licencing regimes across the continent weaken governments’ bargaining power with global satellite operators, whose infrastructure often falls outside national jurisdictions.

It recommended that African governments adopt what it described as a hybrid connectivity model, positioning satellite operators primarily as wholesale providers supporting coverage and resilience in underserved areas rather than competing directly for premium retail customers.