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LESOTHO GRANTS ELON MUSK’S STARLINK LICENSE AMID U.S. TRADE TENSIONS

LESOTHO GRANTS ELON MUSK’S STARLINK LICENSE AMID U.S. TRADE TENSIONS
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Faith Nyasuguta 

Lesotho has officially granted Elon Musk’s Starlink a 10-year license to operate its satellite internet services within the country. The Lesotho Communications Authority (LCA) announced the decision on April 14, marking a significant step in the nation’s efforts to enhance digital connectivity and attract foreign investment.

The approval comes at a time when Lesotho’s trade relations with the United States are under strain. Earlier on, the U.S. imposed a 50% tariff on Lesotho’s exports, the highest rate among Africa’s targeted nations under President Donald Trump’s reciprocal tariffs policy. Although the tariff was reduced to 10% last week, the temporary relief offers only a 90-day reprieve, leaving Lesotho’s economy in a state of uncertainty.

Starlink’s entry into Lesotho is part of its ongoing expansion across Africa. Since launching in Nigeria in January 2023, the satellite internet service has extended its reach to at least 18 African countries, including Rwanda, Mozambique, Kenya, and Zambia. This expansion aims to address the continent’s low internet penetration rate, where only about 40% of the 1.3 billion population is online.

/Starlink/

Despite its rapid growth, Starlink has faced regulatory challenges in parts of Africa. In South Africa, for instance, authorities imposed a ban on the importation of Starlink kits in August 2023, effectively halting the service’s availability in the country.

Lesotho’s decision to license Starlink may also be seen as an effort to strengthen ties with the United States amid ongoing trade tensions. By welcoming a U.S.-based company to provide essential services, Lesotho signals a willingness to engage constructively, potentially influencing future trade negotiations.

As Lesotho navigates the complexities of international trade and seeks to modernize its infrastructure, the introduction of Starlink’s satellite internet services could play a pivotal role in the country’s economic development and digital transformation.

/Courtesy/

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Faith Nyasuguta

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