Johannesburg, South Africa — When Lesotho—a tiny, landlocked mountain kingdom entirely surrounded by South Africa—approved Starlink satellite internet service ahead of the continent's most industrialized economy, it exposed an embarrassing truth: South Africa's regulatory dysfunction increasingly handicaps the nation's competitiveness.
The contrast, highlighted by Moneyweb, crystallizes a pattern familiar to South Africans navigating business registration, municipal service delivery, or state procurement: bureaucratic inertia, institutional capture, and policy paralysis that protects incumbents while punishing consumers and entrepreneurs.
Lesotho, with a population under 2.5 million and GDP a fraction of South Africa's, managed what Pretoria apparently cannot: approving satellite internet service that could bridge digital divides in rural and underserved communities. South Africa, meanwhile, remains mired in regulatory review by the Independent Communications Authority of South Africa (ICASA), with no clear timeline for approval.
"This is embarrassing, and we should say so," stated telecommunications analyst Karabo Makhanya of Stellenbosch Business School. "South Africa positions itself as Africa's technology and innovation leader, yet we're being outpaced by neighbors on basic regulatory approvals. The question is why—and the answers aren't flattering."
Industry observers point to several likely factors: regulatory capture by incumbent telecommunications providers—Telkom, MTN, Vodacom—who benefit from limited competition; bureaucratic caution within ICASA, which fears political backlash from wrong decisions; and lack of political will to prioritize digital infrastructure over other competing interests.
Starlink, operated by Elon Musk's SpaceX, offers satellite-based internet that bypasses traditional terrestrial infrastructure—fiber optic cables, cellular towers, copper lines. For rural South Africa, where connectivity remains sparse and expensive, satellite internet could dramatically improve access to education, healthcare information, e-commerce, and remote work opportunities.
Yet regulatory delay means South Africans in remote areas continue relying on inadequate or nonexistent connectivity, while consumers in neighboring Lesotho, Mozambique, and Zimbabwe—all of which have approved or are closer to approving Starlink—gain competitive advantages in the digital economy.
"Regulatory delay is not neutral," argued digital rights advocate Dr. Thandiwe Zulu. "Every month ICASA delays approval is another month rural students can't access online education, another month small businesses can't reach digital markets, another month South Africa falls behind in the Fourth Industrial Revolution. These aren't abstract costs—they're real economic losses."
The Starlink delay fits a broader pattern of regulatory and institutional dysfunction that has characterized post-apartheid governance, particularly during the Jacob Zuma era's "state capture." While President Cyril Ramaphosa has worked to restore institutional integrity, progress remains uneven. Some state-owned enterprises and regulatory bodies function reasonably well; others remain captured, politicized, or simply incompetent.
Ironically, South Africa boasts world-class telecommunications infrastructure in major cities—Johannesburg, Cape Town, Durban. But that infrastructure serves the wealthy and middle class. Rural and township communities, where the majority of black South Africans live, often lack reliable connectivity—a digital divide that mirrors the economic and spatial divisions apartheid created and democracy has struggled to overcome.
In South Africa, as across post-conflict societies, the journey from apartheid to true equality requires generations—and constant vigilance. The Starlink delay is one more reminder that good intentions and constitutional commitments mean little without institutional capacity, political will, and regulatory integrity to implement them.
ICASA has not provided a clear explanation for the delay, citing ongoing consultations and regulatory review processes. Incumbent telecommunications providers have raised concerns about spectrum allocation, licensing requirements, and competition effects—concerns critics dismiss as protectionist attempts to shield market share from disruptive technology.
"The incumbents are doing what incumbents always do: using regulation to delay competition," said competition economist Sizwe Nkosi. "The question is whether ICASA serves consumers or protects established players. The Starlink delay suggests the latter."
What makes Lesotho's approval particularly stinging is that the kingdom often lags South Africa on governance indicators, institutional capacity, and economic development. If Maseru can navigate Starlink approval, Pretoria's failure reflects not technical complexity but political and institutional dysfunction.
The episode offers a wake-up call—if South African policymakers choose to heed it. Digital connectivity is infrastructure as critical as electricity, water, or roads. Regulatory bodies that delay access to better, cheaper connectivity are failing their public mandate as surely as Eskom fails when load shedding darkens homes and businesses.
South Africa remains Africa's most industrialized economy, a BRICS member with sophisticated financial markets and vibrant civil society. But those achievements cannot mask governance failures that handicap competitiveness and deepen inequality. The Starlink delay is one more data point in a troubling pattern—and one more reason for South Africans to demand better from their institutions.
