Starlink, a satellite internet provider owned by tech billionaire Elon Musk, was awarded a licence by the African kingdom of Lesotho on Monday.
This decision was made a few hours after the government disputed claims that it was rushing the licensing procedure in return for advantageous trade concessions from the U.S.
At least 20 African nations currently use Starlink’s services, including Somalia, which awarded its licence the day before Lesotho announced its decision.
Trump imposition of tariff on Lesotho
Significant economic difficulties recently beset Lesotho, including the imposition of an astounding 50 percent tariff on goods exported to the U. S. Among the reciprocal tariffs listed by former President Donald Trump, this one was the largest levied on a single country and is currently suspended.
Nevertheless, a subsequent development saw these levies lowered to 10% for a 90-day interim reprieve.
Licence to last for 10 years
According to the Lesotho Communications Authority, Starlink filed for a licence in April 2024. The licence will remain in effect for ten years.
The authority said in a statement that this decision is a “landmark” step forward in the nation’s aspirations to undergo a digital transformation.
Lesotho denies Starlink’s licence approval in exchange for USA’s favour
In a statement released concurrently with Starlink’s licence clearance, Foreign Minister Lejone Mpotjoane denied media reports that the Maseru government was rushing the licensing procedure to obtain a beneficial trade deal in the face of severe tariff pressure. In response to media concerns, Mpotjoane stressed that the licensing application and tariff negotiations should not be confused.
The Foreign Minister’s remarks came after reports that Prime Minister Sam Matekane had spoken about the government’s attempts to remove “obstacles to US investment.”
At an investment conference last week, Matekane made it clear that these efforts will also include approvals for projects in industries such as hotels, energy, and Starlink.
Lesotho plans to enhance trade relations with USA
Mpotjoane explained that the Prime Minister was probably referring to the removal of non-tariff barriers to improve commercial relations between Lesotho and other countries, particularly the US.
Lesotho is preparing to send a team to the US to make its case in light of the tariffs because the nation is concerned about the loss of more than 12,000 jobs, especially in its crucial textile sector.
According to the foreign ministry, the Lesotho government has already sent a diplomatic note to Washington expressing its worries about the tariffs.
Implication of Trump’s tariff on Lesotho
Despite having abundant natural resources, Lesotho is nevertheless among the world’s poorest countries, even though South Africa completely encloses it.
The GDP of the nation, which is roughly $2 billion annually, primarily depends on exports, particularly textiles like jeans. The major employer in Lesotho, which has a population of about 2.3 million, is the clothing sector.