Lesotho's prime minister, Samuel Matekane, is pushing to remove barriers to US investment, including the approval of Elon Musk's Starlink, as the country navigates a 90-day pause on 50% tariffs imposed by the US. Matekane framed the approval of Starlink's license as part of broader efforts to attract US investment during the Third Public-Private Dialogue National Conference on April 9 in Maseru.

However, critics argue that the tariffs are unrelated to Starlink and that opposition to the company stems from its 100% foreign ownership, which raises concerns about national interests. They urge the government to address the issue transparently, rather than linking it to the tariff debate. The Lesotho Communications Authority (LCA) confirmed it received Starlink's application for a network services license in February, but the bid has faced strong local opposition during public consultations.

Stakeholders like Vodacom Lesotho and Section Two, a constitutional advocacy group, argue that Starlink should establish local shareholding before receiving approval. They point to existing telecom players, such as Econet Telecom Lesotho and Vodacom Lesotho, as examples of foreign investment coexisting with national interests through local ownership. Approving Starlink's license as a potential sweetener for the Trump tariffs could strain Lesotho's diplomatic relations with South Africa, which rejected Starlink's application over similar concerns about foreign ownership.

This decision could also intensify competition for South Africa's Vodacom, which holds an 80% stake in Vodacom Lesotho, with the remaining 20% owned by the Lesotho government. While granting market access to US companies like Starlink might improve diplomatic and trade relations, there is no guarantee it would lead to tariff reductions. Trade negotiations are influenced by broader economic and political factors, and goodwill alone may not suffice.

Lesotho's Trade, Industry, and Business Development Minister, Mokhethi Shelile, expressed skepticism about the 90-day reprieve in an interview with South Africa's public broadcaster, SABC. "I do not know what is going to happen after 90 days," he said. "It is said that it is done so that we can sit down and negotiate. I do not have a good experience in terms of trying to get meetings with the Trump administration."

Lesotho's economy, with a GDP of $2 billion, is heavily dependent on exports. The textile industry is a major contributor, exporting to the US for brands like Levi's and Calvin Klein under the African Growth and Opportunity Act (AGOA). The US receives $240 million worth of goods annually from Lesotho, compared to only $8 million in exports to Lesotho. A proposed 50% tariff on Lesotho's exports threatens 12,000 jobs in the AGOA-supported factories.

Despite the significance of the US market, South Africa remains Lesotho's primary trade partner, with $351 million in textile and diamond exports in 2023. As Lesotho navigates the complex web of trade relations and investment opportunities, it remains to be seen whether the approval of Starlink's license will have a tangible impact on the country's economic fortunes.