Kigali, Rwanda
East African governments are being urged to rethink how they regulate satellite internet as a new Africa CEO Forum report warns that offshore telecom operators could weaken local investment, reduce public revenues and reshape the region’s digital future. The report says satellite providers such as Starlink are expanding quickly across Africa, but their direct-to-consumer model raises questions about sovereignty, taxation and fair competition.
The report argues that Africa’s biggest internet challenge is no longer coverage alone, but affordability. It says about 86 percent of people in sub-Saharan Africa live within coverage areas, yet only 38 to 43 percent are actually connected, meaning the region’s digital divide is now driven more by cost than infrastructure gaps.
For East Africa, the issue is especially relevant because countries such as Kenya, Rwanda, Tanzania and Ethiopia are already weighing how to balance satellite services with mobile and fibre networks. The report says Kenya and Rwanda are among the markets where satellite internet has gained traction, while Tanzania and Ethiopia still face major affordability and access gaps that make hybrid connectivity models more attractive.
The report says satellite internet can help connect remote schools, clinics and rural communities, but warns that offshore operators may also draw away high-value urban and enterprise customers that traditionally help fund broader network expansion. That, it says, could squeeze incumbent telecom operators, discourage investment in fibre and towers, and reduce the flow of licensing and tax revenue to governments.
The paper cites Kenya as an example of how policy can adapt, pointing to the country’s growing use of disaster-risk financing and hybrid connectivity approaches. It says governments should require satellite operators to comply with the same rules as terrestrial providers on licensing, taxation, security and data handling.
The report also urges East African states to coordinate more closely through regional and continental frameworks so they can negotiate from a stronger position. It recommends a hybrid model in which satellite services complement, rather than replace, local telecom infrastructure, with more emphasis on African-owned gateways, data centres and network capacity.
