Lesotho Weighs Starlink Licence Amid U.S. Tariff Pause and Local Pushback

Lesotho’s Prime Minister, Samuel Matekane, is doubling down on efforts to court U.S. investment, including backing Elon Musk’s Starlink, even as the country faces intense debate over U.S. trade tariffs and local opposition to 100% foreign-owned tech firms.

At the Third Public-Private Dialogue National Conference on April 9 in Maseru, Matekane positioned Starlink’s licence approval as a symbolic step in attracting American investors. This follows a 90-day pause on sweeping 50% tariffs — the highest in Africa — proposed by the Trump campaign on AGOA (African Growth and Opportunity Act) exports.

Critics, however, argue that Starlink has little to do with tariff relief, instead framing the issue around national sovereignty. Advocacy groups and telecom competitors such as Vodacom Lesotho and Econet Telecom Lesotho are urging the government to require local shareholding for any foreign entrant — as is standard for most telecom operators in the country.

The Lesotho Communications Authority (LCA) confirmed that Starlink applied for a network services licence in February, but its bid has met resistance in public consultations. Constitutional watchdog Section Two and telecom operators argue that fully foreign-owned entities like Starlink risk undermining Lesotho’s data sovereignty and economic inclusion goals.

South Africa’s rejection of Starlink over similar concerns looms large in the debate, especially since Vodacom South Africa owns an 80% stake in Vodacom Lesotho, with the Lesotho government owning the remaining 20%. A licence approval could strain diplomatic ties with South Africa while intensifying telecom competition in Lesotho.

Meanwhile, Lesotho’s Trade Minister Mokhethi Shelile has expressed doubt over whether aligning with U.S. business interests will save the country from steep tariffs. Speaking to South Africa’s SABC, he said, “I do not know what is going to happen after 90 days… I do not have a good experience in terms of trying to get meetings with the Trump administration.”

Lesotho’s economy — with a $2 billion GDP — is highly reliant on exports, particularly from AGOA-backed textile factories. The U.S. imports about $240 million worth of goods annually from Lesotho, mostly apparel for brands like Levi’s and Calvin Klein, while exporting just $8 million to Lesotho in return. The proposed tariffs could wipe out up to 12,000 jobs, devastating an already fragile economy.

Despite strong U.S. trade ties, South Africa remains Lesotho’s top trade partner, receiving $351 million worth of textile and diamond exports in 2023 alone.

Click the link Puretvonline.com | WhatsApp Channel to join the whatsapp channel

GOT A STORY?

Contact/WhatsApp: +233243201960 or Email: manuelnkansah33@gmail.com