Amazon has officially begun large-scale satellite deployments for its long-delayed broadband internet constellation, Project Kuiper, setting the stage for a high-stakes race with SpaceX’s Starlink.

With the April 28, 2025 launch of its first batch of 27 operational satellites aboard a United Launch Alliance (ULA) Atlas V rocket, Amazon has kicked off an ambitious plan to deploy over 3,200 satellites in low Earth orbit. Though Amazon confirmed all 27 satellites reached space successfully and responded to ground commands, the project is far from the finish line, and Starlink remains years ahead in both technology rollouts and market presence.

The Kuiper mission, known as KA-01, marks the official start of Amazon’s deployment campaign. This mission followed the earlier October 2023 test of two prototypes, but the 2025 launch was the first using final production models equipped with improved antennas, propulsion systems, and onboard processing. The launch had faced delays due to weather, including a scrub on April 9, but eventually proceeded from Cape Canaveral. Following separation, Kuiper’s operations center in Redmond, Washington, took over satellite control.

Amazon’s license with the U.S. Federal Communications Commission mandates that it must launch half of its 3,236 satellites, or about 1,618 by July 2026, and the full constellation by July 2029. The company is under pressure to accelerate manufacturing and launch activities if it is to meet that timeline. Analysts believe Amazon may request an extension, considering that it missed its initial schedule by nearly a year.

To meet these obligations, Amazon has booked over 80 launches from multiple providers, including ULA, Arianespace, and Blue Origin. ULA’s CEO has said the company could conduct up to five more Kuiper launches this year, though warned that completing all contracted Atlas V launches by year-end may not be feasible. ULA’s next-generation Vulcan Centaur rocket is also being prepared to take on Kuiper missions, while Ariane 6 and Blue Origin’s New Glenn, both contracted for Kuiper — are facing their own delays and technical hurdles.

But even as Amazon begins deployment, its main rival SpaceX has already established dominance. Starlink, which began launching satellites in 2019, now has over 8,000 satellites launched, with more than 7,000 currently active in orbit. Starlink reached an estimated 4 to 5 million subscribers by the end of 2024 and now provides internet in over 100 countries. Project Kuiper, in contrast, has no customers yet. Amazon says it will begin service later in 2025 once a critical mass of satellites is operational.

Though both companies aim to offer global broadband through low-Earth orbit satellites, their strategies and infrastructure differ. Kuiper satellites are designed with Ka- and V-band communications payloads, onboard processing, and optical inter-satellite links for fast, networked data transfer. Amazon also uses special coatings to reduce satellite brightness and minimize their impact on astronomy. Its approach emphasizes connecting underserved and unconnected regions, especially rural communities, at affordable rates.

Starlink has targeted similar markets but has also found traction in the enterprise, maritime, and defense sectors. SpaceX’s latest satellite variants feature laser interlinks and advanced electric propulsion, enabling efficient in-space maneuvering. It has already been adopted by the U.S. military and deployed in conflict zones like Ukraine.

Meanwhile, Amazon has indicated that Kuiper service may be bundled through Amazon Web Services and partnerships with other telecom firms, such as Hughes and Eutelsat, particularly in Latin America.

Still, Project Kuiper is grappling with steep logistical and production challenges. Amazon’s new satellite factory in Kirkland, Washington, meant to mass-produce hundreds of units per year, has not yet reached full capacity. By the end of 2024, fewer than 40 satellites had been completed, and the plant was still short of its goal to hire 200 specialized technicians. Insiders report that without scaling up, the company may not be able to meet its first FCC milestone in 2026.

Amazon also faces launch constraints. While the Atlas V rocket can carry heavy payloads, it is in limited supply, and the newer Vulcan and New Glenn vehicles are not yet fully operational. ULA, which manages the bulk of Kuiper’s near-term launch schedule, is balancing Kuiper missions with U.S. national security launch commitments. Launchpad availability in Florida is another bottleneck, given that SpaceX dominates the use of Cape Canaveral facilities for its Falcon 9 and Falcon Heavy missions.

Amazon CEO Andy Jassy described the April 2025 launch as the culmination of years of work and innovation. “This is just the beginning,” said Rajeev Badyal, Vice President of Kuiper Systems, echoing the sentiment that the path to full deployment will be a long one. The company has stated that initial service can begin with as few as 578 satellites, gradually building global coverage.

Despite the early momentum, Kuiper’s late start and Starlink’s entrenched market lead mean Amazon must move quickly. Starlink is already eyeing upgrades to its next-generation constellation, while continuously iterating on user terminals and pricing. Project Kuiper, meanwhile, is still working to establish basic operations.

The broader satellite broadband market is heating up. OneWeb, a British-Indian venture, is rebuilding after bankruptcy with a constellation of around 648 satellites, already deployed and focused on commercial and government markets. Other competitors, including Telesat and Chinese ventures, are also preparing constellations — though none yet match the scale or reach of Starlink.

Amazon says Kuiper’s mission is to close the digital divide and expand internet access to “tens of millions” worldwide. But to do so, it must first navigate production delays, launch logjams, and an unforgiving timetable.

International Breweries Plc has made a strong comeback in the first quarter of 2025, posting a pre-tax profit of N35.06 billion, a significant turnaround from the loss of N89.3 billion recorded in the same period last year.

The brewer’s return to profitability stems almost entirely from improved foreign exchange dynamics which drastically lowered the company’s non-operational costs, particularly its exposure to net foreign exchange losses. That adjustment alone cleared the path for the company to reflect its core operational strength on its bottom line.

In the three months ending March 31, 2025, International Breweries generated N173.6 billion in revenue, representing a 68.2% jump from the N103.2 billion earned during the same quarter in 2024. The revenue was primarily driven by pricing adjustments and increased market penetration across its beer and malt product lines. However, some believe this top-line growth must be viewed in context: it reflects the company’s response to inflationary pressure and rising input costs, not necessarily a sign of improved consumer purchasing power.

The sharp rise in revenues was matched by a notable rise in the cost of sales, which jumped by 53.3% to N113.9 billion, from N74.3 billion the previous year. This indicates continued inflationary strain on raw materials, logistics, packaging, and energy — costs that continue to bite even as companies try to push some of the burden to consumers through price hikes.

Despite these headwinds, gross profit climbed by a substantial 106.7% to N59.6 billion, from N28.9 billion a year ago, reflecting stronger margins bolstered by more efficient cost recovery and operational scale.

Selling, administrative, and marketing expenses rose to N27.4 billion, up by 25.7% from N21.8 billion in Q1 2024. The increase underscores the company’s continued investments in branding, distribution, and logistics — critical for defending market share in Nigeria’s highly competitive beverage sector. But even with those increased costs, the company’s operations performed strongly.

The real game-changer was the dramatic reduction in non-operating expenses, particularly the foreign exchange losses that had devastated the firm’s bottom line in 2024. In Q1 2024, International Breweries recorded N80.5 billion in net foreign exchange losses, a figure that completely wiped out operating gains. In contrast, the company reported only N581.4 million in such losses in Q1 2025, marking a staggering 99.3% reduction.

This steep decline can be attributed to a relatively more stable exchange rate regime in early 2025, improved access to forex liquidity, and possibly more sophisticated hedging strategies employed by the company’s treasury team. The naira, while still under pressure, has seen less volatility compared to the dramatic devaluation episodes of 2023 and 2024, offering businesses some relief in managing dollar-denominated obligations.

Swing to Profit and Asset Position

Thanks to the forex reprieve, operating profit rebounded to N31.5 billion, reversing a deep operating loss of N80.5 billion recorded in the corresponding period last year. Pre-tax profit followed suit, swinging to N35.06 billion, an impressive recovery that underscores how critical currency stability is to the manufacturing and fast-moving consumer goods (FMCG) sectors.

As of March 31, 2025, total assets stood at N742.9 billion, up slightly from N728 billion in Q1 2024, reflecting a 2.07% increase. The modest rise in assets shows the company is growing cautiously, likely prioritizing efficiency and liquidity over-aggressive expansion in a still-uncertain economic climate.

Stock Market Reaction and Investor Sentiment

Investors have responded favorably to the company’s turnaround. As of April 28, 2025, International Breweries’ shares closed at N8.47, representing a year-to-date increase of 152.6%. This performance not only signals renewed investor confidence in the brewer’s financial trajectory but also highlights the stock’s strong rebound potential following its depressed position in 2024.

Analysts believe the company’s recovery would not have been possible without the easing of forex constraints that crippled its performance last year. Nigeria’s volatile currency environment has rendered many businesses in the manufacturing sector unprofitable, especially those with dollar obligations and import-heavy operations. The Q1 2025 result now suggests that as exchange rate pressures ease, even slightly, businesses can breathe again.

No Illusion of Rising Disposable Income

While some companies’ Q1 profits have been attributed to an improved economic environment, analysts note that this profit recovery should not be misread as evidence that Nigerian consumers are spending more freely. Disposable incomes remain severely strained due to persistent inflation, job losses, and higher living costs, all of which continue to weigh heavily on demand. Many consumers have traded down to cheaper beverage options or reduced consumption altogether. The sharp rise in International Breweries’ revenue likely reflects price increases and not actual volume-led growth.

The company, like others in the beverage industry, is walking a tightrope — trying to balance profitability with affordability in a market where price elasticity is very sensitive.

African airlines saw air cargo demand plummet by 13.4% year-on-year in March 2025, the steepest decline across all global regions, even as the international air cargo market recorded its strongest March performance in history, according to the latest report from the International Air Transport Association (IATA).

The March figures underscore an increasingly uneven global cargo recovery, with Africa’s decline standing in sharp contrast to the 4.4% growth in global air cargo demand, measured in cargo ton-kilometers (CTKs). For international operations, demand was even more robust, rising 5.5% compared to March 2024.

At a time when air cargo demand worldwide is buoyed by a mix of global industrial recovery, falling jet fuel prices, and front-loaded shipments amid looming U.S. tariff changes, the slump in Africa points to deeper issues in the region’s air logistics and trade corridors.

“March cargo volumes were strong… a historic peak for the month,” said IATA Director General Willie Walsh, noting that future growth could still be tempered by unresolved trade tensions and global tariff uncertainty.

Capacity-Demand Mismatch

Ironically, while African demand plunged, available cargo capacity on the continent rose by 10.5% year-on-year. This growing disparity between supply and utilization underlines a mounting imbalance and inefficiency in Africa’s air cargo operations. Carriers appear to be adding capacity amid a shrinking market, a potentially costly mismatch that could further strain already thin profit margins.

This trend is particularly troubling given Africa’s dependence on air cargo for intra-regional trade and time-sensitive imports like pharmaceuticals, spare parts, and high-value perishables. Analysts say the disconnect may reflect broader structural challenges including weak regional integration, limited industrial production, and declining consumer demand in key African markets such as Nigeria, South Africa, and Kenya.

The continent’s underperformance comes at a time when the global economic backdrop is broadly improving. According to IATA, world industrial production grew by 3.2% year-on-year, and global trade volumes expanded by 2.9%. Inflation in major economies also eased, which is expected to support consumer demand and business investment.

For instance, the U.S. consumer price index fell to 2.4%, the EU averaged 2.5%, Japan saw inflation decline to 3.6%, and China’s deflationary trend eased to -0.1%. These trends contributed to stronger air cargo growth in other regions.

• Asia-Pacific carriers led globally with a 9.6% increase in demand and an 11.3% rise in capacity.
• North American airlines followed closely, recording a 9.5% increase in demand with capacity growing by 6.1%.
• European carriers saw demand rise by 4.5%, with capacity increasing by 2%.
• Latin American airlines posted a 5.8% growth in demand and a 4.7% capacity increase.

Only the Middle East, alongside Africa, recorded a decline in demand. Middle Eastern airlines saw a 3.2% drop, though this was partly attributed to strong base effects from early 2024 when maritime disruptions in the Red Sea drove temporary air cargo surges.

Trade Lanes Weakening

Particularly troubling for Africa is the decline in traffic along the Africa–Asia trade lane, which has historically been a vital corridor for bilateral trade involving raw materials and manufactured goods. With trade routes such as this underperforming, African carriers face heightened vulnerability to global shifts in trade and production.

This also casts doubt on the region’s readiness to benefit from initiatives like the African Continental Free Trade Area (AfCFTA), which was envisioned to boost intra-African trade and logistics.

Industry analysts suggest that the persistent underperformance of African air cargo is less about cyclical market changes and more indicative of long-term structural weaknesses, including fragmented regulatory environments, poor infrastructure, high costs, and weak export diversification.

They added that without coordinated policy reforms, deeper regional integration, and investment in cargo infrastructure, African airlines may continue to lag behind their global peers, even during global upswings.

IATA’s report denotes that while global air cargo has entered a new phase of post-pandemic resilience, Africa remains an outlier, and not in a good way. The 13.4% drop in demand is seen to be more than just a quarterly anomaly, with some economists describing it as a wake-up call for policymakers, investors, and aviation stakeholders across the continent.