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Tariffs

Lesotho's Textile Industry Reels Under US Tariffs

Strategic Insights

— 1 min read

As winter sets in Lesotho, groups of textile workers are searching for jobs in the national capital of Maseru after a US tariff policy sent the industry into turmoil. The policy, announced in April, has heavily impacted Lesotho's export-oriented textile industry, which is its largest private employer, providing 36,000 jobs, mostly held by women. The US is Lesotho's second-largest trading partner, with bilateral trade reaching 240 million USD in 2024, with Lesotho exporting goods worth 237 million USD, accounting for about 10 percent of its GDP.

Key Takeaways:

  • The US tariff policy, announced in April, has dealt a severe blow to Lesotho's fragile economy, particularly the export-oriented textile industry, which is its largest private employer, providing 36,000 jobs, mostly held by women.
  • Lesotho's population of just over 2 million has a poverty rate of nearly 50%, and an unemployment rate of about 25%, leaving the country with limited capacity to respond to the US tariff increase.
  • Afri-Expo Textiles, a major local textile company, was severely impacted by the US tariff hike, prompting the laying off of nearly 500 workers and halting expansion plans to employ over 10,000 people.
  • The US tariffs have hindered Lesotho's industrialization and led to a foreign exchange shortage, according to Lesotho's Trade Minister Mokhethi Shelile.
  • Despite the challenges, Afri-Expo Textiles' Managing Director Teboho Kobeli is seeking financing to improve efficiency and expand into new markets in southern Africa and Europe.

Statistics:

  • Lesotho's bilateral trade with the US reached 240 million USD in 2024, with Lesotho exporting goods worth 237 million USD (about 10% of its GDP).
  • Afri-Expo Textiles had to lay off nearly 500 workers due to the US tariff hike.
  • Lesotho's textile industry provides 36,000 jobs, mostly held by women.
  • Lesotho has a population of just over 2 million and a poverty rate of nearly 50%.
  • Lesotho's unemployment rate is about 25%.

Sources:

  • Xinhua
  • Interview with Lesotho's Minister of Trade, Industry, Business Development and Tourism, Mokhethi Shelile

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