With only 30% of Liberia's population having access to reliable internet, the government is optimistic that Starlink's entry will significantly enhance internet coverage across the nation.

In November 2024, the Liberia Telecommunications Authority (LTA) granted Starlink a one-year provisional license to operate, despite concerns regarding the market's capacity for an additional major player.

Starlink made an initial payment of $3,000 for its license and is required to pay an annual fee of 0.5% for the Universal Access Fund, yet it has not made any tax payments since beginning operations.

The Liberia Revenue Authority (LRA) is currently engaging with Starlink about its tax obligations, but it has been confirmed that no tax payments have been made thus far.

Complicating matters, the licensing agreement lacks clarity regarding Starlink's tax obligations in Liberia, with the LTA not prioritizing this issue amid the country's pressing financial needs.

The uncertainties surrounding Starlink's tax payments and regulatory compliance could potentially strain Liberia's relationship with Musk and diminish the expected benefits of increased internet access.

Starlink is facing similar regulatory challenges in other countries, such as Cameroon, where it was forced to halt operations for lacking a license, and in the Caribbean, where it has outstanding debts.

Musk, who leads the Subcommittee on Delivering on Government Efficiency (DOGE), is under scrutiny for tax evasion and regulatory compliance issues in several countries, including Liberia.

Musk's involvement with Starlink coincides with the DOGE's cancellation of a $17 million USAID project aimed at providing tax policy advice to Liberia, raising concerns about the nation's dependency on foreign aid.

In contrast to its situation in Liberia, Starlink is expected to comply with tax regulations in Kenya, highlighting the unresolved tax compliance issues in Liberia.

Elon Musk's company Starlink is making strides to enter Liberia's telecommunications market, which is currently dominated by Orange and Lonestarcell/MTN, following a discussion with President Joseph Boakai in July 2024.