On Monday, the small African kingdom of Lesotho officially granted a license to the satellite internet service Starlink, owned by tech billionaire Elon Musk. This decision came just hours after the government denied allegations that it was hastily advancing the licensing process in exchange for favorable trade concessions from the United States. Starlink currently operates in at least 20 countries across Africa, including Somalia, which granted its license just a day prior to Lesotho’s announcement.
Lesotho recently faced significant economic challenges, including the imposition of a staggering 50 percent tariff on goods exported to the United States. This tariff was the highest imposed on any single nation as part of former President Donald Trump’s now-suspended reciprocal tariffs list. However, in a recent development, these tariffs were reduced to 10 percent for a temporary reprieve lasting 90 days.
The Lesotho Communications Authority announced that Starlink submitted its application for a license in April 2024. The granted license will be valid for a period of 10 years. In a statement, the authority described this decision as a “landmark” move that represents a crucial advancement in the country’s digital transformation efforts.
The approval of Starlink’s license coincided with a statement from Foreign Minister Lejone Mpotjoane, who refuted media claims suggesting that the government of Maseru was expediting the licensing process to secure a favorable trade agreement amid the pressure of high tariffs. Mpotjoane emphasized that the licensing application and tariff negotiations should not be conflated, addressing concerns raised by the media.
The Foreign Minister’s comments followed reports indicating that Prime Minister Sam Matekane had mentioned the government’s efforts to eliminate “obstacles to US investment.” During an investment conference held the previous week, Matekane highlighted that these efforts would extend to approvals for ventures in sectors such as Starlink, energy, and hospitality.
Mpotjoane clarified that the Prime Minister was likely referring to non-tariff barriers that need to be addressed to enhance trade relations between Lesotho and other nations, including the United States. In light of the tariffs, Lesotho is planning to send a delegation to the United States to advocate for its case, as the country fears potential job losses exceeding 12,000, particularly in its vital textile industry.
The Lesotho government has already communicated its concerns regarding the tariffs to Washington through a diplomatic note, as stated by the foreign ministry. Despite being entirely surrounded by South Africa, Lesotho remains one of the world’s poorest nations, despite possessing substantial mineral reserves. The country’s annual gross domestic product (GDP) is approximately $2 billion, heavily reliant on exports, primarily textiles, including jeans. The clothing industry serves as the largest employer for Lesotho’s population of around 2.3 million people.
