As Lesotho breathes a sigh of relief following a temporary 90-day suspension of sweeping 50% U.S. tariffs, the highest imposed on any African country. Prime Minister Samuel Matekane is making a strategic push to attract more American investment. One key move? Potentially approving a network services license for Elon Musk’s satellite internet company, Starlink.
Speaking at the Third Public-Private Dialogue National Conference in Maseru on April 9, Matekane framed Starlink’s entry into Lesotho as part of broader efforts to create a more open and welcoming environment for U.S. businesses. But the proposal has sparked debate.
Critics argue that the tariff dispute and Starlink’s license are separate issues. Their concern centers on Starlink’s 100% foreign ownership, which they say raises flags about national interests and sovereignty. They’re calling on the government to address these concerns transparently—without folding Starlink into the larger tariff narrative.
The Lesotho Communications Authority (LCA) confirmed that Starlink submitted a license application in February. However, public consultations revealed strong opposition from local stakeholders. Companies like Vodacom Lesotho and advocacy groups such as Section Two argue that foreign tech firms must include local ownership to align with Lesotho’s national priorities. They point to Vodacom and Econet, which operate under similar foreign partnerships but include local shareholding structures.
Using Starlink as a bargaining chip in trade talks with the U.S. could have ripple effects—especially with South Africa, which previously denied Starlink a license on the same ownership grounds. Any approval from Lesotho could also heighten tensions with Vodacom South Africa, which owns 80% of Vodacom Lesotho (the remaining 20% belongs to the Lesotho government).
While granting Starlink market access might signal goodwill and improve trade optics with the U.S., there’s no guarantee it will influence the outcome of tariff negotiations. International trade policies are shaped by broader political and economic calculations, and symbolic gestures may not move the needle.
Lesotho’s Trade, Industry, and Business Development Minister, Mokhethi Shelile, expressed cautious optimism but also concern in a recent interview with South Africa’s SABC:
“I don’t know what will happen after 90 days. We’re told it’s a chance to sit and negotiate, but from my experience, it hasn’t been easy to get meetings with the Trump administration.”
Lesotho’s economy, valued at just $2 billion, is heavily reliant on exports, particularly in the textile sector. The country exports goods to major American brands like Levi’s and Calvin Klein under the African Growth and Opportunity Act (AGOA). Each year, the U.S. imports roughly $240 million worth of Lesotho goods, compared to only $8 million exported to Lesotho.
The proposed 50% tariffs pose a direct threat to the livelihoods of around 12,000 workers in AGOA-supported factories. Still, while the U.S. is a key market, South Africa remains Lesotho’s top trading partner, receiving $351 million in textiles and diamonds from Lesotho in 2023 alone.