The group argues that the application should be denied due to concerns over the lack of local ownership and the potential failure to benefit the Basotho people.

Starlink, the satellite internet provider founded by Elon Musk, has requested approval to expand its services to businesses and the public in Lesotho. However, Section 2’s Secretary General, Tjatjapa Sekabi, has raised critical concerns regarding the company’s 100% foreign ownership, which he believes could result in the exclusion of locals from the potential benefits of the service.

Sekabi explained, “Starlink’s application does not address the needs of the Basotho people. The company is entirely foreign-owned, with no involvement from locals, which contradicts the precedence set by our telecommunications sector. Currently, two companies operating here offer local stakeholders a share in their businesses, one providing a 30% stake and another offering 20%.”

He further elaborated, “Telecommunications should not be about business alone; it should also serve the people. While there are rural and mountainous regions in Lesotho in dire need of internet access, these areas may not be financially lucrative. With foreign ownership, there’s a real concern that profits could be prioritised over the welfare of our citizens.”

While Lesotho’s telecommunications laws do not mandate local ownership, Sekabi says that the existing practice of local participation in businesses should be followed. “Our law doesn’t require local ownership, but Section 2 wants to ensure that this principle continues. We are not against Starlink coming to Lesotho, but we believe Basotho should have a stake in the company.”

Sekabi suggested that although the application may not be rejected, there should be amendments to ensure that the Basotho people are given a meaningful role, whether through ownership or partnerships. "Competition is beneficial for consumers, but it’s essential that local people have a share in the business,” he stated.

Tshepo Kgadima, an economic analyst, has weighed in on the potential impact of Starlink’s entry into Lesotho’s telecommunications sector. From an economic perspective, Kgadima believes that Starlink’s influence will be minimal due to Lesotho’s small market size and limited demand for electricity and broadband services. “Lesotho is economically small, and the demand for satellite internet and electricity remains limited. Starlink’s impact here will likely be less significant compared to larger nations,” Kgadima stated.

Kgadima also pointed out that African countries, including Lesotho, need substantial investments in infrastructure to fully harness the benefits of satellite internet. “Africa requires considerable investments in electricity generation and infrastructure to successfully tap into the Fourth Industrial Revolution,” he said. “The key isn’t whether Starlink or another company provides the service; it’s about ensuring we have the infrastructure in place to support it.”

Further, Kgadima criticised South Africa’s black economic empowerment (BEE) laws for not fostering meaningful economic growth for the majority of the population. “The current system fails to provide sufficient economic opportunities for the majority. The BEE laws have not allowed for the meaningful ownership needed to drive substantial growth,” he noted.

Kgadima advocates for an inclusive model of economic participation, where ordinary citizens have the opportunity to share in the ownership of businesses operating in their countries. He pointed to countries like Singapore and Hong Kong as examples, where citizens actively participate in the growth of emerging industries. "It's time for African governments to rethink their policies and create more opportunities for citizens to participate in the growth of emerging sectors," he said.

Both Sekabi and Kgadima agree that local ownership is key to ensuring that Lesotho’s citizens benefit from the growing digital economy. For Sekabi, the concerns go beyond just Starlink. "It’s not only Starlink we are concerned with. Any foreign company entering Lesotho must offer Basotho a stake in the ownership. This is non-negotiable," he emphasised.

As the Lesotho Communications Authority (LCA) reviews Starlink’s application, Section 2 remains focused on ensuring that local ownership and participation are integral to any new telecommunications venture in the country. Sekabi and other advocates hope that the LCA will take their concerns seriously and require that Starlink, and other foreign entities, comply with the country’s established model of local involvement.

--ChannelAfrica--