Lesotho's Prime Minister, Samuel Matekane, is pushing for the approval of Elon Musk's Starlink satellite internet service, despite strong local opposition and concerns over national interests. The move comes as the country breathes a sigh of relief following a 90-day pause on the 50% sweeping tariffs imposed by the US, the highest in the world.

The Prime Minister framed Starlink's license approval 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.

The Lesotho Communications Authority (LCA) confirmed it received Starlink's application for a network services license in February. However, 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 cited 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.

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. The country's decision to push for Starlink's approval amidst tariff uncertainty raises questions about the government's priorities and its ability to balance national interests with foreign investment.

As Lesotho navigates this complex situation, it remains to be seen whether the country will be able to attract US investment while protecting its national interests. The outcome of Starlink's license application will likely have far-reaching implications for the country's economy and its relationships with key trade partners.