South Africa, Parliamentarians heard, is developing a sovereign space capability with the Denel Overberg Test Range (OTR) a major component.
The development aspect was highlighted by Dr Kenny Tenza, Acting Deputy Director General: Technology Innovation in the Department of Science, Technology and Innovation (DSTI) during a visit to OTR last week.
Members of the Portfolio Committee on Science, Technology and Innovation were at the Denel facility in the Overberg region of the Western Cape province to assess South Africa’s readiness to be part of the global space race, according to a DSTI social media post. The Parliamentarians were taken through OTR mission control and launch facilities, amongst others.
OTR CEO Bridget Salo highlighted the facility’s world-class testing capabilities, stressing the need for “better alignment” among national stakeholders to fully leverage the site’s potential.
South African National Space Agency (SANSA) CEO Humbulani Mudau outlined plans to develop indigenous launch capabilities, emphasizing the role of sovereign assets in driving space economic diplomacy and domestic industry growth.
OTR, sited near Arniston, is a State-owned facility in the Denel portfolio, testing missiles, aircraft systems and what is termed “defence equipment”. Its major client is the SA National Defence Force (SANDF) with other local and international users also regular visitors. They include the Aerospace Systems Research Institute (ASRI) of the University of KwaZulu-Natal (UKZN) which, has launched sub-orbital sounding rockets from OTR.
Tenza highlighted that DSTI investment in the facility is already yielding results. The site is currently supporting ASRI in developing liquid propellant rockets — critical for technology development and training the next generation of engineers.
The OTR in December 2024 added a sub-orbital sounding rocket launch facility to its inventory, thanks to funding from the DSTI. Speaking at the facility launch, Deputy DSTI Minister Nomalungelo Gina called it “a landmark achievement” as far as advancing aerospace technology and innovation was concerned.
Denel expects the Overberg Test Range to be profitable over the next three years thanks to a healthy order pipeline, including a possible satellite launch. In its 2025-2026 Corporate Plan, the company predicts a R9 million profit for the Denel OTR in 2025/26; a R4 million profit in 2026/27, and a R5 million profit in 2027/28.
This is on the back of over R400 million in planned sales over the next three years, with major orders and campaigns either signed or projected from entities including the South African Department of Defence, Halcon, Diehl Defence (IRIS-T), Rheinmetall Denel Munition (RDM), Pronex, University of KwaZulu-Natal (rockets), and Milkor (Milkor 380 UAV). The Republic of Singapore is expected to once again use the range for its Brightfire live fire exercise (the 2024 edition at the Denel OTR involved the RBS 70 missile, for example).
Denel is also looking at space capabilities, including the completion of a locally designed, manufactured and launched satellite and upgrade of the Overberg Test Range for satellite launches, tracking and testing for national space initiatives. South African National Space Agency and Department of Science and Innovation funding will be used to ensure the Overberg Test Range is ready to launch a first satellite in 2028. “This will strategically position South Africa to develop a sovereign space launch capability,” according to Denel’s Corporate Plan.
In its Corporate Plan, Denel identified a number of risks to the Overberg Test Range’s future, including insufficient capital expenditure, lack of critical skills, and instrumentation and infrastructure failures resulting from inadequate spending during 4-5 years of its liquidity crisis brought on by state capture. However, Denel believes it has sufficient cash available to maintain planned instrumentation and infrastructure, and aims to fill critical vacancies during the 2026 financial year and phase the rest in during the following financial year.
