Denel Overberg training ground, South Africa's leading center for testing missiles and developing launch capabilities, predicts stable profitability over the next three years thanks to a strong order book and growing interest in space technology, in particular before satellite launches. As a unit of the state defense and space group Denel, the test site plays a key role in the development of national launch capacities.
According to the corporate plan of Denel on 2025-2026 years, represented in the parliament, the landfill expects a profit of 9 million ZAR ($511,000) in 2025/26, 4 million ZAR ($227,100) in 2026/27 and 5 million ZAR ($283,900) in 2027/28. These forecasts are based on projected sales in over 400 million ZAR ($22.7 million) in three years.
The South African Ministry of Defense is among the confirmed and potential clients, Falcon, Diehl Defence (IRIS-T), Rheinmetall Denel ammunition, Pronex, Milks (for UAV Milkor 380) and the University of KwaZulu-Natal for the missile program. Singapore plans to return for the Brightfire exercise, testing the RBS missile 70. Additional contracts for more than 100 million ZAR ($5.67 million) are considered with international organizations, in particular, the Canadian International Test Pilots' School, Aselsan, Paramount, fleets of Brazil and Vietnam, the US military, France and European missile developers, such as Skyrora and Rocket Factory Augsburg.
Development of capabilities for launching satellites
Denel plans to develop its own launch capacity through the Overberg, modernizing the test site for launches, tracking and testing in collaboration with the Department of Science and Innovation and the South African National Space Agency (SANSA). Expected, what to 2028 year, the test site will be ready for the launch of the satellite. Denel is also counting on a three-year contract with the University of KwaZulu-Natal at 16 million ZAR ($908,000) annually for space projects.
Risks include lack of capital investment, the lack of qualified personnel and the consequences of the previous financial crisis. However, Denel has sufficient cash flow to support infrastructure and plans to address staffing issues with 2026 year.
Institute of Aerospace Research (ASRI) University of KwaZulu-Natal boosted Overberg's potential, launching in October 2024 year launch pad for suborbital rockets, capable of supporting Phoenix hybrid rockets and larger solid propellant vehicles. The Phoenix-1B Mk II's record-breaking launch reached altitude 17.9 km - the highest hybrid flight in Africa. ASRI received CSIR grant for 2.4 million ZAR to develop 3D printed SAFFIRE engine components as part of the South African First Rocket Engine programme. These advances support the creation of a commercial launcher (CLV) to 2028 year, strengthening Overberg's position as a space hub.
The Elon Musk factor
SpaceX is considering the Denel Overberg test site as a potential launch site for its rockets. This cooperation can accelerate the development of the landfill, attract investment in infrastructure, improve telemetry and tracking systems, and also promote workforce development, affecting aerospace, engineering and logistics sectors of the Western Cape. A partnership with SpaceX could strengthen Denel's commercial prospects and position Overberg as a key element of South Africa's space ambitions.