Namibia has rejected an application by Elon Musk-owned Starlink for a licence to provide satellite internet services in the country, dealing the company a second setback in southern Africa.

The Communications Regulatory Authority of Namibia (Cran) announced the decision without giving reasons for its refusal, but noted that Starlink's Namibian subsidiary did not have local ownership.

Starlink has not yet commented on the decision.

It operates in about 25 African countries but has faced regulatory challenges in others, including South Africa, where ownership rules have also blocked its entry.

Namibian law requires that at least 51% shares in any telecommunications company must be owned by citizens or local entities.

Namibia is a former colony of Germany, and was under the rule of South Africa's white-minority regime until it gained independence in 1990. It then adopted policies aimed at increasing local ownership in businesses and tackling racial inequality.

On its website, Starlink says it has established a local company that will partner with Namibian firms and create employment opportunities.

Cran said it could reconsider its decision either on its own motion or on a petition filed by an aggrieved party within 90 days.

In 2024, the regulator issued an order against Starlink, accusing it of operating without a licence and instructing it to immediately cease all operations in Namibia. It also advised the public not to purchase Starlink terminal equipment or subscribe to its services, as doing so would be illegal.

Musk, who was born in South Africa, has previously criticized racist ownership laws for his company's challenges in entering South Africa.

He has also argued that these policies act as barriers to foreign investment, despite the South African government asserting Starlink could operate if compliant with local laws. They noted that many US companies, including major corporations, successfully conduct business in South Africa.

The black empowerment policies, introduced post-apartheid, require investors to give local black firms a 30% ownership stake, aiming to rectify historical injustices and integrate locals into the economic framework.

Starlink aims to provide satellite internet services particularly targeting remote areas lacking high-speed internet.