In a move that has sparked widespread concern among businesses and economic analysts, the Botswana Communications Regulatory Authority (BOCRA) has denied a license application by Starlink, Elon Musk's satellite internet venture, to operate within Botswana. The application, submitted in May 2023, sought to introduce high-speed satellite internet across the nation, promising to enhance competitiveness and bolster the digital infrastructure essential for the country's economic growth.
The decision by BOCRA has raised alarms over the protectionism of an existing, yet costly and uncompetitive, telecommunications industry, at a time when the importance of digital infrastructure in the ease of doing business is increasingly recognized globally. Critics argue that this stance not only hampers the country's economic competitiveness but also impedes on the government's own objectives to develop key sectors such as tourism, which is earmarked for growth.
Recent developments underscore the urgency of the situation. Botswana Ash, for instance, had to invest a hefty sum of P4.6 million to extend fiber-optic connectivity from Sowa Town to its mining operations, a distance of 22km. This project, while necessary, highlights the exorbitant costs businesses incur due to the lack of adequate internet infrastructure. The tourism sector, a cornerstone of Botswana's economy and a target for expansion, particularly feels the brunt of this regulatory bottleneck. Remote tourist destinations, such as camps in the Okavango Delta, suffer from slow and expensive internet services, compromising the competitiveness of wildlife tourism.
Separately, a top official working for one of the top eco-tourism companies voiced her disappointment, emphasizing that "high-speed internet in tourism is not negotiable" and lamenting the impact on profit margins due to costly and inefficient internet solutions currently available. Another top mining executive this week told Botswana Guardian that “if competition and new solutions are being denied the opportunity then fibre should be taken to areas of need such as the mines. Mines should not be forced to become internet companies when the service provider that is willing to bridge the gap is there and willing to enter the Botswana market”.
The denial of Starlink's license has not only affected potential business growth but has also sparked a broader debate on economic policy and regulatory practices in Botswana. Economist Keith Jefferis, speaking at the FNB Budget Review, criticized Botswana Government economic and regulatory priorities and significant increases in infrastructure spending including on roads and telecommunications by saying “we are creating special interest groups with vested interests in certain spending programs.”
This controversy comes at a critical juncture for Botswana, as it seeks to leverage digital technology for economic development. The denial of Starlink's application by BOCRA is viewed by many as a missed opportunity to leapfrog technological advancements and enhance the country's global competitiveness. As discussions continue, the decision raises pivotal questions about the future direction of Botswana's digital infrastructure strategy and its implications for economic growth and inclusivity.
The decision by BOCRA has raised alarms over the protectionism of an existing, yet costly and uncompetitive, telecommunications industry, at a time when the importance of digital infrastructure in the ease of doing business is increasingly recognized globally. Critics argue that this stance not only hampers the country's economic competitiveness but also impedes on the government's own objectives to develop key sectors such as tourism, which is earmarked for growth.
Recent developments underscore the urgency of the situation. Botswana Ash, for instance, had to invest a hefty sum of P4.6 million to extend fiber-optic connectivity from Sowa Town to its mining operations, a distance of 22km. This project, while necessary, highlights the exorbitant costs businesses incur due to the lack of adequate internet infrastructure. The tourism sector, a cornerstone of Botswana's economy and a target for expansion, particularly feels the brunt of this regulatory bottleneck. Remote tourist destinations, such as camps in the Okavango Delta, suffer from slow and expensive internet services, compromising the competitiveness of wildlife tourism.
Separately, a top official working for one of the top eco-tourism companies voiced her disappointment, emphasizing that "high-speed internet in tourism is not negotiable" and lamenting the impact on profit margins due to costly and inefficient internet solutions currently available. Another top mining executive this week told Botswana Guardian that “if competition and new solutions are being denied the opportunity then fibre should be taken to areas of need such as the mines. Mines should not be forced to become internet companies when the service provider that is willing to bridge the gap is there and willing to enter the Botswana market”.
The denial of Starlink's license has not only affected potential business growth but has also sparked a broader debate on economic policy and regulatory practices in Botswana. Economist Keith Jefferis, speaking at the FNB Budget Review, criticized Botswana Government economic and regulatory priorities and significant increases in infrastructure spending including on roads and telecommunications by saying “we are creating special interest groups with vested interests in certain spending programs.”
This controversy comes at a critical juncture for Botswana, as it seeks to leverage digital technology for economic development. The denial of Starlink's application by BOCRA is viewed by many as a missed opportunity to leapfrog technological advancements and enhance the country's global competitiveness. As discussions continue, the decision raises pivotal questions about the future direction of Botswana's digital infrastructure strategy and its implications for economic growth and inclusivity.
