4 days Ago By News Ghana
News Ghana, Latest Updates and Breaking News of Ghana, News Ghana, https://newsghana.com.gh/lesotho-grapples-with-starlink-approval-amid-u-s-tariff-uncertainty-and-sovereignty-concerns/Lesotho’s government faces mounting pressure as it deliberates whether to grant a license to Elon Musk’s Starlink, a decision entangled in broader debates over U.
S. trade relations and fears of foreign dominance in critical sectors.Prime Minister Samuel Matekane has championed the satellite internet venture as a gateway to American investment, particularly after the Trump administration proposed a 90-day pause on imposing 50% tariffs on exports from Lesotho under the African Growth and Opportunity Act (AGOA).
The tariffs, which would be the highest in Africa, threaten to destabilize an economy reliant on $240 million in annual U.S. apparel imports.
At a recent economic conference in Maseru, Matekane framed Starlink’s approval as a strategic move to signal openness to U.S. partnerships.
Yet the initiative has sparked fierce opposition from local telecom giants Vodacom Lesotho and Econet Telecom Lesotho, which argue that foreign-owned firms should adhere to Lesotho’s standard requirement for partial local ownership. Advocacy groups, including legal watchdog Section Two, warn that allowing Starlink to operate without domestic stakes could compromise data sovereignty and hinder economic inclusion efforts.The Lesotho Communications Authority (LCA) disclosed that Starlink applied for a license in February, but public consultations have revealed deep skepticism.
Critics question whether aligning with U.S. tech interests would genuinely shield Lesotho from tariffs, noting that Starlink’s operations are unrelated to the textile exports at risk.
Trade Minister Mokhethi Shelile echoed these doubts, telling South Africa’s SABC, “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.”Complicating matters is South Africa’s rejection of Starlink over sovereignty concerns, a stance amplified by Vodacom South Africa’s 80% ownership of Vodacom Lesotho. Approving Starlink could strain bilateral ties while disrupting a telecom sector dominated by South African-linked firms.
Meanwhile, Lesotho’s economic fragility looms large: the proposed tariffs endanger up to 12,000 jobs in a nation where 40% of exports go to the U.S., and unemployment exceeds 20%.
The stakes extend beyond tariffs. Lesotho’s $2 billion economy remains tethered to South Africa, its largest trade partner, which absorbed $351 million in textiles and diamonds last year. While Matekane’s administration seeks to diversify alliances, the Starlink debate underscores the precarious balance between courting foreign investment and safeguarding national interests a challenge familiar to many small economies navigating global power dynamics.
Analysts suggest the outcome could set a precedent for how African nations negotiate tech sovereignty amid rising geopolitical competition. News Ghana, Latest Updates and Breaking News of Ghana, News Ghana, https://newsghana.com.
gh/lesotho-grapples-with-starlink-approval-amid-u-s-tariff-uncertainty-and-sovereignty-concerns/.
