Elon Musk’s Starlink faces regulatory challenges in Africa

In South Africa, Starlink faces a licensing challenge that mandates that telecommunications companies must have at least 30% ownership by historically disadvantaged groups

Elon Musk’s ambitious Starlink project, which aims to provide global satellite internet coverage, is encountering several obstacles in its efforts to broaden its services across Africa. As each African country has its own set of requirements for foreign companies to operate. Obtaining the necessary licenses and approvals can be a lengthy and cumbersome process. Starlink’s need to navigate multiple regulatory bodies and comply with diverse legal frameworks and this has slowed its rollout.

The project has encountered various regulatory challenges across Africa. The service has been denied approval in seven countries, including Côte d’Ivoire, Burkina Faso, DR Congo, South Africa, and Senegal and Zimbabwe.

The latest development involves Zimbabwe, where in a surprising development, the Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) has withdrawn the exclusive rights previously given to Wicknell Chivayo’s IMC Communications for operating Starlink services in Zimbabwe . POTRAZ mandated the company to suspend its services, citing that they were operating without proper authorization. This decision came amid a power struggle within the ruling ZANU-PF party, highlighting the intersection of politics and business in the regulatory environment.

In South Africa, Starlink faces a licensing challenge that mandates that  telecommunications companies must have at least 30% ownership by historically disadvantaged groups. This requirement led the Independent Communications Authority of South Africa (ICASA) to suspend Starlink’s services until these licensing conditions were met. 

In late April, Starlink stopped  its service in Cameroon due to a government directive. The regulator claimed that Starlink was operating without the necessary license and presented risks to national security and fair competition. Cameroonian authorities had voiced worries that Starlink’s entry into the market could pose a threat to the national telecommunications and internet service provider, Cameroon Telecommunication( Camtel)

The Cameroon Customs Director General Fongod Edwin Nuvaga  stated in a notice to customs staff  that “This technology, which enables unrestricted, ultra-fast internet access, falls outside the oversight of the Telecommunications Regulatory Board and therefore poses a threat to national security.”

In Ghana, their services were deemed illegal in December 2023 but later in April 2024 the National Communications Authority (NCA) allowed them to operate in Ghana, allowing the company to provide satellite broadband services to the country.

 In these nations, where Starlink’s services have begun to surface, the company has yet to finalize agreements with local governments, leading to enforcement of local regulations. Meanwhile, the imposition of these bans underscores the increasing consumer interest in Starlink’s service and satellite internet as a whole.

 As Starlink works to address these challenges, its success or failure will offer important lessons for the intersection of technology and regulation in emerging markets. The road ahead for Starlink in Africa remains uncertain, but the company’s perseverance and adaptability will be key to achieving its goal of global connectivity. The unfolding story of Starlink in Africa highlights both the promise of technological innovation and the complexities of implementing it across diverse regulatory landscapes.

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