Govt considers bending local partnership rules for Starlink

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Govt considers bending local partnership rules for Starlink

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TIRI MASAWI

The government is considering giving Elon Musk’s Starlink the green light to operate in the country without a local partner, a move that would sidestep existing foreign business ownership rules.

Musk is a South African-born billionaire now based in the United States. 

Sources say the matter has already reached Cabinet, where there is growing support for allowing Starlink to retain 100% ownership of its Namibian operation. Another option on the table is a minority government stake, but insiders suggest Starlink’s preferred route is gaining traction.

Information and Communication Technology minister Emma Theofelus confirmed last week that the government is actively discussing the possibility of waiving local ownership requirements.

“Once the government has made a decision to waive the local ownership stake, we will announce it at the appropriate time,” she told the Namibia Business Review. 

Starlink applied for an operating licence from the Communications Regulatory Authority of Namibia (CRAN) in 2024, but the process stalled. Namibian law requires foreign telecom operators to have majority local ownership, unless the ICT minister grants a special exemption under the Communications Act of 2009.

According to a source, the Cabinet is leaning towards approval because of Starlink’s potential to expand internet access to remote and underserved areas where current providers struggle.

“The feeling is that Starlink could have its way and operate without a local partner because of the impact it could have on connectivity. If there are no serious objections from the public, the licence is likely to go ahead,” the source said. 

Cabinet secretary Emilia Mkusa yesterday said “It’s best to speak to the Minister of Information on this issue as she is better positioned to comment on matters of ICT.”

Some African countries such as Zimbabwe, Kenya, Ghana, Botswana, Malawi, Madagascar, and the Democratic Republic of Congo have already made exemptions  and allowed Starlink to operate.

 

Starlink Business Operations vice president and senior director Lauren Dreyer last week acknowledged the power that Theofelus has. 

“These countries (who made exemptions) are accelerating towards a digital future. Fortunately, Namibian law already gives ICT minister Emma Theofelus the power to grant similar  ownership flexibility. So a similar future is possible for Namibia,” she said.

 

CRAN has since invited Namibians to submit objections to Starlink’s licence application, as required by law.

 

Starlink, owned by SpaceX founder Musk, offers satellite-based internet through a portable kit that delivers high-speed, low-latency connectivity from space. The service has rapidly expanded across Africa and other regions.

 

However, the proposal has not gone unchallenged. Some critics have raised concerns about data security and surveillance, particularly in developing countries.

 

REFUSAL

 

Former parliamentarian Maximalliant Katjimune said Starlink cannot be allowed in Namibia. 

“Elon Musk is a habitual racist who believes false claims that there is a White Genocide in South Africa, and now we want to give him power over our personal data. It will be more interesting and tragic if that licence is granted by CRAN,” he said. 

Katjimune said the notion that the prices for Starlink are cheap does not apply to Namibia.

“It’s not relevant for Namibia. Namibia’s data prices are relatively affordable. Why bring in an outside force, which will prejudice our local companies,” he said. 

Starlink has so far rolled out in  Zimbabwe, Kenya, Ghana, Botswana, Malawi, Madagascar, and the Democratic Republic of Congo with exemptions.

Starlink officially registered a company in Namibia recently, signaling a step closer to bringing his satellite internet service Starlink to the country.

In 2024, Starlink, Musk’s satellite internet company, applied for a licence from the CRAN) but the application met delays.

Starlink Business Operations vice president and senior director Dreyer last week said a local company has already been set up.

“We have already established a local Namibian company. We are discussing agreements with local retailers and resellers. We stand ready to pay all required fees and taxes – just like other operators,” she said.

Dreyer said Starlink can immediately introduce affordable broadband to Namibians no matter where they are located.

“Reliable high-speed internet is essential for education, healthcare, business and public services. Starlink looks forward to connecting underserved communities across Namibia,” she said.

CRAN is now reviewing Starlink’s application to become a registered internet service provider. The application was submitted in June 2024.

Last week, CRAN announced that the application was published in Government Gazette 8795 under Notice Number 897, inviting the public and stakeholders to submit written comments within 14 days from 28 November, which lapses on 12 December.

CRAN spokesperson Mufaro Nesongano said the publication marks a critical step in the licensing process, allowing stakeholders and the public to review the application details.

“Once the comments have been received, CRAN will consider the application in full and evaluate it against the licensing criteria set out in section 39 of the Communications Act and licensing regulations,” he said.



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