African Business reports that the deal with the Hong Kong-based company, which was signed by Djibouti’s President Ismail Omar Guelleh, includes the construction of port infrastructure and highways in the northern Obock region to ensure the reliable routing of aerospace materials coming from China.

The construction work could be completed as early as 2027. Under the deal, Hong Kong Aerospace Technology will manage the site for the first 30 years, after which it will pass into Djiboutian hands.

"I am delighted to see our country involved in this promising technological and energy development project," said Guelleh.

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Located relatively close to the equator, Djibouti is an attractive destination for the launch of satellites that can take advantage of the Earth’s rotational speed, ensuring savings on the amount of fuel required to get rockets into space. In 2022, African nations allocated a total of $534.9 million for the operation of their respective space programs, and 13 African nations have manufactured a total of 48 satellites.

Djibouti's plan to build Africa’s first rocket-launch facility is a "very important" step because presently there is no functioning one on the continent, Temidayo Oniosun, the managing director of the consultancy firm Space in Africa, has told the BBC’s Newsday programme.

The Djiboutians' goal was to have an "international launch site" where any company from anywhere in the world could launch satellites, Oniosun said.

However, because the Chinese would manage the site, he warned that it might be "politically difficult" to attract companies based in countries with strained relations with Beijing, such as the United States.

He added that over the next decade, the world could see more space facilities built in Africa, with countries like Egypt and Nigeria having plans in the pipeline to build them.

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