Lesotho under-pressure to suppress local ownership clause for Starlink’s launch

The government of Lesotho has noted that the country is working to remove barriers for Elon Musk’s Starlink and other U.S. companies to operate despite local opposition. According to a source, the government is under pressure following a 50% tariff by US President Donald Trump.

In February, the SpaceX-owned satellite services applied for a network services licence from the Lesotho Communications Authority (LCA). However, the bid was met with an order to establish local shareholding before it could receive a licence. 

Backing the local ownership practice during a recent LCA public consultation, Vodacom Lesotho CEO Mohale Ralebitso said that local involvement will foster partnerships with domestic businesses, create investment opportunities and ensure broader economic inclusion. 

A civil group, Advocates for the Supremacy of the Constitution (commonly known as Section Two), also stressed the benefits of local ownership in its formal submission to the LCA. 

“While Section Two recognises the potential benefits of expanded internet access, we respectfully oppose the issuance of this licence to Starlink due to the complete absence of local ownership in the company,” said secretary-general Tjatjapa Sekabi.

He referenced examples like Econet Telecom Lesotho, which is 70% owned by Econet Wireless Global, with the government of Lesotho holding the remaining 30%. Similarly, Vodacom Lesotho has an 80% share ownership by South Africa’s Vodacom Group, while the remaining 20% is held by the Sekha-Metsi Consortium, a group of local Basotho businesspeople and public figures.

Sekabi noted that Starlink Lesotho’s filing indicated that all its shares are owned by Starlink Holdings Netherlands, a foreign entity, with all registered directors being US citizens. This “leaves no room for Basotho ownership – neither through the government nor through private local entities”, he added.

While the communication authority has concluded its review of public comments and is now engaging with those who contributed, it noted that public consultations continue. 

Also Read: South African minister accused of bending local laws for Elon Musk’s Starlink.

Lesotho’s local ownership laws and Starlink

As much as the Southern African country recognizes the benefits of the local ownership clause, it is reportedly under pressure from Donald Trump’s U.S.

The U.S. imposed a 50% tariff on imports from Lesotho, representing the highest among all affected countries. This has threatened up to 12,000 jobs in factories that export to the US under the African Growth and Opportunity Act (AGOA).

While Trump recently paused the tariff implementation for 90 days, the 10% tariff that came into effect on April 4 is still effective. 

According to Prime Minister Matekane, the Lesotho government has been in conversation for relief and the reinstatement of its development aid. He pointed out that Starlink’s approval is part of the effort.  

“We are actively removing obstacles to US investment, addressing issues like Starlink, energy, and hospitality investment approvals,” Matekane said at the Third Private-Public Dialogue National Conference held in Maseru, Lesotho’s capital. 

While Section Two applauded Matekane’s efforts to address the economic fallout from US tariffs, it cautioned against connecting the discussions to Starlink’s licence. 

“Opposition to Starlink stems solely from its 100% foreign ownership and its implications for national interests. If the government intends to approve the licence despite this, it should say so clearly and directly, rather than obscuring the issue behind the tariff debate,” Section Two Coordinator Kananelo Boloetse said. 

He also advised the government not to sacrifice the country’s economic performance at the expense of regional ties with the U.S. government. Data shows that over 70% of Lesotho’s exports flow to South Africa, compared to less than 20% to the US. Boloetse cautioned that straining ties with South Africa to impress Trump or Musk could jeopardise the interests of Basotho (Lesotho citizens).

In addition, Section Two encouraged a balanced approach, warning that South Africa has already rejected Starlink’s licence application over concerns about its foreign ownership. Approving the same licence in Lesotho could jeopardize diplomatic relations with Pretoria.

It explained that if the government does approve Starlink’s application, the decision must be made through a transparent, independent process that places national interest above foreign appeasement. 

Recall that Elon Musk’s Starlink is facing similar approval issues in South Africa. 

In a recent development, a South African Lawmaker accused the Communications Minister, Solly Malatsi, of trying to erode the country’s telecoms laws to allow Elon Musk’s Starlink easy entry.

This follows a policy directive to recognise equity equivalent programmes in the sector to accelerate broadband access and attract multinationals that could not comply with local equity ownership requirements. The senior lawmaker stressed that Malatsi is seeking to bend the country’s laws on local ownership to appease foreign businesses, including Elon Musk’s Starlink.