Starlink Faces More Setbacks Over Local Ownership, This Time In Lesotho

Elon Musk’s Starlink is facing significant backlash in Lesotho over local equity. A rights group called Section 2 wants Starlink to give 30% of its ownership to Basotho citizens before obtaining a license to operate, according to TechPoint.

The group voiced its concerns to the Lesotho Communications Authority, stating that the licensing deal is unfair since there is no local ownership. They also highlighted that other telecom providers in Lesotho, like Econet and Vodacom, have local shareholders, so why should Starlink receive special treatment?

Starlink faces similar issues in South Africa

Starlink’s issues in Lesotho are reminiscent of those it faced in neighboring South Africa. South Africa has Black Economic Empowerment (BEE) laws that require foreign investors in the telecom sector to allocate 30% of a project’s equity to Black-owned businesses to qualify for a license. The policy is designed to mitigate racial inequalities formed under apartheid and is supported by the African National Congress Party (ANC).

The founder of Starlink, who was born and went to school in South Africa, wrote on X, “Starlink is not allowed to operate in South Africa, because I’m not black.” However, the country’s officials’ denied Musk’s claim, and a regulator shared that Starlink had not applied for a license.

Starlink in other Southern Africam countries

While the company is facing setbacks, it has already gone live in several Southern African countries, including Eswatini, Botswana, and Zimbabwe. Namibia will launch Starlink later this year. However, no confirmations exist on the Lesotho and South Africa launch date.

Image: Starlink