Musk's Starlink ambitions in Africa face economic hurdles

According to data on the Starlink website, Musk has persuaded 17 African countries, including Botswana, Eswatini, Mozambique, Kenya, Nigeria, and Zimbabwe, to adopt satellite internet over the past two years.

This year, Liberia joined Musk's satellite network, becoming the latest African country to do so. Almost simultaneously, Minister Abdullah Kamara, head of the Liberian telecommunications office, signed a contract with Musk for internet provision. Former President Trump mockingly criticized American grants for "social cohesion" projects in Liberia, referring to them as "scams."

Although Liberia, due to the embezzlement of millions of dollars, is not the best example of the rational spending of funds from the U.S. Agency for International Development (USAID), the program ridiculed by Trump aimed to narrow ethnic divides in this highly fragmented country. These divides led to two civil wars over 25 years ago, claiming about 250,000 lives.

Also, in Lesotho, which the former U.S. president recently insulted by saying that "no one has heard of this country," Musk is seeking a ten-year operational license for his company.

In 2023, Nigeria became the first African country to sign an agreement with Musk and has painfully felt the loss of American aid. However, Starlink encountered serious issues. Last year, without any consultation, the company increased the price of its services by 100%. After the price hike, internet in Nigeria became more expensive than in most European countries and now costs $46. It is even more expensive in impoverished Eswatini, where the monthly subscription exceeds $50.

In Liberia, one of the poorest countries in the world, it isn't much cheaper. The monthly fee for the service provided by Starlink is $40. This price does not include the extra costs of buying diesel required to operate power generators, which are essential for the internet to function.

In Africa, Starlink is criticized by local telecommunications firms, which accuse it of not investing in local jobs and infrastructure. In November last year, Namibian authorities ordered Musk's company to cease operations because it was offering internet without a valid licence.

Musk's native South Africa has encountered the most significant resistance to signing the contract. His efforts are hindered by the "Black Economic Empowerment" regulation, which aims to strengthen the economic position of Black individuals. The government requires Starlink to allocate at least 30% of shares to shareholders from "historically disadvantaged groups," meaning indigenous inhabitants of the continent.

Additionally, both Trump and Musk have accused authorities in Pretoria of "white genocide," offering victims asylum in the United States. This has not helped negotiations to bring South Africa within Starlink's range.