Lesotho is Facing Pressure to Grant Starlink an Operating License

Lesotho is facing growing pressure to grant Starlink an operating license as discussions surrounding the satellite internet provider’s application heat up. Starlink, a SpaceX-owned satellite internet provider, has been pushing to get a licensed network service to offer coverage in the country.

The Lesotho government wishes to approve Starlink’s application to attract investors from the U.S. However, there has been a pushback from the local companies over the lack of Basotho ownership in the company. Prime Minister Samuel Matekane announced on Wednesday that his government is removing hurdles for U.S. companies to operate in Lesotho.

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Due to the U.S tariffs on imports from Lesotho under the African Growth and Opportunity Act (AGOA), the economy is struggling. Matekane said this week that giving Starlink Lesotho an operating license will help boost the economy by attracting more investors.

However, the bid for Starlink Lesotho has drawn stiff opposition from locals and business people. Vodacom Lesotho managing director Mohale Ralebitso said in public consultations that Starlink must have local shareholding before approval. He said this could create partnerships with local businesses, give them investment opportunities and ensure economic inclusion.

A rights group called Advocates for the Supremacy of the Constitution, commonly referred to as Section Two, has raised objections. The group said Starlink Lesotho is a fully-foreign owned company, whose all shares are held by Starlink Holdings Netherlands, with no room for ownership by the Basotho. According to Tjatjapa Sekabi, Secretary-General of Section Two, this set-up is in sharp contrast to existing telecom operators in Lesotho, namely Econet Telecom Lesotho and Vodacom Lesotho which have substantial local ownership stakes.

For example, Econet Telecom Lesotho is 70% owned by Econet Wireless Global, while the government holds 30%. Similarly, Vodacom Lesotho is 80% owned by South Africa’s Vodacom Group, with 20% held by a consortium of local Basotho business people. This profit-sharing model ensures that a portion of the profits and decision-making power remain within the country’s borders.

However, in this instance, it is believed that Starlink Lesotho has not fully taken the same principle into account. This is because granting Starlink Lesotho an operating licence without altering its structure could undermine national interests. They worry that a fully foreign-owned firm will not tackle challenges in Lesotho, like connectivity in remote areas. Section Two has requested Starlink to ensure 30% share allocation to citizens or Basotho entities before approval of operating license.

Adding to this pressure were the latest tariffs imposed by the United States through the Presidency of Donald Trump. A fifty percent tariff on goods imported from Lesotho threatens thousands of jobs in textile factories selling to the U.S. Although the Tariff was halted for 90 days by Trump, a 10% tariff continues to exist. Prime Minister Matekane has asked for relief from the tariffs, and sees granting Starlink’s license as a way to improve relations with the U.S.

Section Two said linking Starlink’s application to tariffs should not be done. Coordinator Kananelo Boloetse of Section One said that the only reason opponents oppose Starlink is that Starlink is foreign. Furthermore, he called for transparency in decision making. He also warned that this must not strain relations with South Africa as they turned down Starlink’s license application over similar foreign ownership concerns.

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The Lesotho Communications Authority (LCA) continues to review the various opinions from the public on the application of Starlink but faces challenges due to conflicting opinions. While Matekane is hard at work to remove barriers for U.S. companies like Starlink, local stakeholders are adamant that it will not be approved unless it ensures Basotho participation.

Lesotho removing barriers for U.S companies may be crucial for economic growth, but balancing foreign investment with national interests remains a delicate issue. The decision on whether or not granting Starlink Lesotho an operating license will work out could have lasting implications for both the country’s economy and its sovereignty.

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